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June 7, 2010

Why Google TV Is Bigger Than You Think
by James L. McQuivey, Ph.D. for Consumer Product Strategy Professionals

Making Leaders Successful Every Day

For Consumer Product Strategy Professionals

Why Google TV Is Bigger Than You Think
How TV Will Finally Become Interactive, at Scale
by James L. McQuivey, Ph.D. with Mark Mulligan and annie E. Corbett

June 7, 2010ExECuT I V E S u M Ma rY
Google made significant noise when it recently announced Google TV, the search giant’s most recent attempt to influence the future of the TV experience. The news itself was overly complex, and Google failed to reduce it to its most powerful properties. That said, we believe that Google TV matters in a way that prior (failed) attempts to merge computing and TV viewing didn’t.By offering the first solution that can entice manufacturers, developers, and viewers alike, Google accelerates — and benefits handsomely from — the collision of the TV and the Internet, ultimately leading advertisers into a new relationship with consumers.

TaBL E o F Co n TE n TS
2 Google TV Gives Google Its Only Shot At The World’s Most Important Medium What Google TV Does Google TVassembles Three Pieces of a Previously Incomplete Puzzle TV + Web = Better TV
rECoMMEnDaTIonS

n oT E S & rE S o u rCE S
This document uses data from Forrester’s north american Technographics® Entertainment and Media online Survey, Q3 2009 (uS) and north american Technographics Digital Home online Survey, Q4 2009 (uS).

8 Google Must Make Clear Its Real Intention: The Overhaul Of TV AdvertisingWHaT IT MEanS

Related Research Documents “The State of Consumers and Technology: Benchmark 2009, uS” September 2, 2009
“How Consumers Get online Video To The TV” June 8, 2009

9 Google TV Will Upset Many Apple Carts — Including Apple’s 10 Supplemental Material

© 2010, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on bestavailable resources. Opinions reflect judgment at the time and are subject to change. Forrester®, Technographics®, Forrester Wave, RoleView, TechRadar, and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. To purchase reprints of this document, please email clientsupport@forrester.com. For additional information,go to www.forrester.com.

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Why Google TV Is Bigger Than You Think
For Consumer Product Strategy Professionals

GOOGLe TV GIVeS GOOGLe ITS OnLy ShOT AT The WORLD’S MOST IMPORTAnT MeDIUM Some have asked why Google, which takes nearly $7 billion into its coffers each quarter from that little old search engine it sports, would care about the old-world TV technology in the living room. Theanswer is simple: TV matters in a way that nothing else does. Each year in the US alone, the TV drives roughly $70 billion in advertising and a similar amount in cable and satellite fees, as well as an estimated $25 billion in consumer electronics (CE) sales. Plus, viewers spend as many as 4.5 hours a day with TV.1 If you’re Google and you want to know where the next advertising dollars you’llappropriate are, you need look no further than the TV. What Google TV Does First, we start with what Google TV is. In classic Google fashion, it’s a bunch of different things lumped together, starting with:

· An open source operating system (OS) for the future of the TV. This is the core of what

constitutes Google TV. Google has ported its Android-based OS to the TV and will release it to thedevelopment community for any device manufacturer to incorporate into its hardware, whether TVs, Blu-ray players, set-top boxes, or tablet TV companions. In contrast to other lighter-weight platforms like Yahoo!’s TV Widget Engine, it requires sufficient computing resources — such as a better processor, which is where Intel stands to benefit — but it rewards developers and users with more robust...
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