What the Google/Motorola Deal Means for TV

[SoCalDem]

http://www.broadcastingcable.com/article/472485-News_Analysis_What_the_Google_Motorola_Deal_Means_for_TV.php

The $12.5 billion deal is all about the patents, at least much more so than gaining a foothold in the pay TV industry.

By George Winslow -- Broadcasting & Cable, 8/17/2011 2:03:05 AM

Google's announcement that it would buy Motorola Mobility for $12.5 billion is already sending shock waves through the TV and wireless industries, with opinions ranging from suggesting it could revolutionize the TV industry all the way to some rousing memories of AOL-Time Warner. Neither outcome seems likely but there is little doubt that the deal-if it passes regulatory scrutiny at a time when the Federal Trade Commission is already investigating Google-would certainly realize Google's longstanding ambition of becoming a much bigger player in the TV industry.

The acquisition also highlights the growing importance of web and mobile players in the TV industry, and in some sense might be considered the first big deal of the tablet revolution that is transforming the way viewers access and watch TV programming. As part of the deal, Google will acquire the settop box and cable equipment operations of Motorola Mobility, one of two dominant suppliers of settop boxes and equipment to the U.S. pay TV industry.

Stephen Froehlich, senior analyst of consumer electronics at IMS Research, estimates in a report that as of the end of last year, "28% of digital pay-TV households in North America are on Motorola cable systems--i.e. used Motorola's Mediacipher conditional access system." At minimum, Google could use that market clout to strengthen its ties with major operators looking to deliver more content to more devices, including phones and tablets using the Android operating system. That might allow Google to build on the popularity of YouTube to expand its over-the-top video services or even deploy its Android platform on settop boxes, which would help Google get a chunk of the $70 billion TV advertising business.

A closer look at the deal indicates, however, that its impact on the TV industry is likely to be much more muted, at least in the near term, and that any attempt by Google to widely deploy Android-enabled settop boxes or get a significantly larger foothold in the TV ad business would face very significant challenges. Those challenges can be seen by taking a close look at five of the key issues TV executives need to watch as the deal unfolds.

1. Why is Google Buying Motorola Mobility?

snip

[Safetykitten]

1. Ahhh, the television of our future, pay per episode and all the "I Dream of Jeannie" you want.

Maybe they are forgetting one little thing.

Content worth watching or paying for.

[Angry Dragon]

2. I thought it was against the law for people to buy people??

just asking

[Sherman A1]

3. Good Point!