Google’s One Set-Top Box Too Many

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By Douglas A. McIntyre Published
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According to a number of media reports, Google Inc. (NASDAQ: GOOG) will release a set-top box. Presumably the product is meant to allow it to compete with new generation products from Amazon.com Inc. (NASDAQ: AMZN) and Apple Inc. (NASDAQ: AAPL). However, the market is much more crowded than that, and Google’s chance of taking market share from incumbents is low.

According to The Wall Street Journal:

Google’s device will carry another company’s brand, but will be powered by Google’s new Android TV software designed to play movies, games and other content on televisions, the people said. Users will be able to control the box using Android smartphones or tablets, and potentially other devices.

Since Android has taken over the smartphone market, Google might assume it can do as well in the home entertainment market.

A typical American living room is filled with devices connected to the TV screen. Most of these are from cable and satellite companies, which bring hundreds of channels to tens of millions of homes, and they have held their places on the tops of TVs for decades. The firms have set up on-demand devices with libraries of countless films. They are, at least, modest competitors to products from Apple and Google. And they are entrenched.

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Telecom companies, primarily Verizon Communications Inc. (NYSE: VZ) and AT&T Inc. (NYSE: T), have displaced some of the cable and satellite delivery with fiber to the home products that are also carriers for broadband. The two telecoms are also in the race to bring on-demand premium content, making them one of an increasing number of companies with partnerships with Hollywood.

If the market is not crowded enough, Microsoft Corp. (NASDAQ: MSFT) offers its Xbox One as a home entertainment delivery system, as does rival Sony Corp. (NYSE: SNE) via its PlayStation 4. Internet providers deliver video, games and broadband to the TV alternative — the PC screen. And Blue Ray DVD players are enough for many Americans who want to rent or own content delivered in a physical form.

Google’s new set-top device may offer everything its competition does, along with particularly strong interactivity with programs brought via Android. That will not be nearly enough to help it elbow into a market filled to the bursting point.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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