Wednesday, November 02, 2005

GOOGLE SATELLITE TV

When one reads that the chair of SBC went defensive about the use of the companies "pipes" it became clear why Google has interest in satellite TV feeds. The key thing that Google can offer views and advertisers is relevant advertising. Relevant advertising is a huge win for both. The consumer can watch less advertising to learn more about the products he will buy. The advertiser spends less on a rifle approach than on a shot gun approach. The consumer may even view more advertising if the advertising is in his areas of interest.

A satellite TV company might want to team up with Google to send internet TV to DVR type boxes. Consumers might click to let Google know not to send more ads of a certain type. This is similar to the way the Google sidebar works. I have been able to stop seeing even the headlines of stories in which I have no interest.

As Google learns more about me, it will be able to select the best advertising for me and for the vendors. TV ads are currently the biggest waste of time. On the internet, many of the ads are relevant and therefore not a waste of time. Folks like me keep the remote handy in an attempt to avoid as much of the repetitive TV advertising as possible. It sure will be nice when one can cancel an ad with the click on the remote.

SBC has built and purchased a heavy duty network. The old AT&T network was the biggest in the world by far until MCI and World net grew rapidly. SBC can not raise the cost of using the network much because it is a competitive situation. Users routinely swap packets of data across networks and pay only for the "net" usage. LVLT and other smaller firms are merging to fight the "big boys". QCOM, Goog , COMCAST and others are expanding their networks. The frustrated words of SBC only serve to encourage the building out of other alternative routes. Google has invested in power line systems, WiFi systems and it has purchased miles of "dark" fiber.

Google is looking for more partners. Google plays by a different book than the old MSFT. MSFT always tried to monopolize a business. Google wants to connect the consumer to the vendor. In some cases it will become the vendor but for the purpose of building something that is good for the customer. Satellite TV providers may have a natural partner available.

NBC News is now available on the internet. So are a rapidly growing list of video cast. There are going to be some neat videos posted in the coming years. The best ones will gain large audiences quickly. Many of these will be shot by amateurs. The cost to the satellite TV company for this content will be ZERO! This "long tail" content will produce billions of advertising revenues for Google and partners.

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