Google's TV redux?

Motorola XPRT Googles deal to get Motorola Mobility boosts questions regarding its ambitions to develop the set-top box business.Attaining a more powerful grasp from the wireless market might be the main motive behind Google's $12.5 billion purchase of Motorola Mobility Holdings, however the buyout's effect on the cable market is to not be undervalued. If Google does not finish up spinning off Motorola's settop-box business, the Mountain View, Calif., juggernaut come in prime position to tackle the television sector in ways that wasn't accomplished using its battling Google TV product. That might not have been immediately apparent Monday as Google place the focus squarely on the significance of acquiring patents and integrating its Android operating-system with Motorola's hardware holdings. All Boss Ray Page allows about set-tops arrived a vague mention of the what Motorola describes since it's "home" unit. Stated Page, "I believe there's an chance to accelerate innovation in your home business by working with the cable and telco industry once we undergo a transition to Ip address.Inch But exactly how just that "innovation" will get implemented might be greatly consequential, based on Serta Olds, an analyst with Gabriel Talking to Group. "This may be the tail that's wagging your dog,Inch Olds stated. "The set-top box is of greater importance to Google than anybody could anticipate." Motorola is among the greatest providers of set-top boxes worldwide, but that has not came to a distinction because of the cable industry has lengthy been belittled for saddling its customers having a low quality consumer experience. Google can enjoy a vital role in speeding up the industry's evolution to IP-connected boxes that may open a variety of options, including seamless internet access. This is an evolution that's already happening with MSOs like Comcast, which went public in the Cable Show in June with hybrid and IP-connected methods that it's presently experimentation. Nevertheless, cable operators might not be so excited through the prospect of Google getting its on the job the cable biz's infrastructure, especially because Google TV wasn't exactly a champion. No part of the product steered clear of critique, from the interface to its cost, that has been considerably reduced. Sales were so slow that recently among Google's partners, Logitech, says more and more people within the second quarter were coming back the merchandise than purchasing it. But Motorola could give Google full control to complete its vision for getting married to TV and also the Internet as opposed to the limited achieve that came through close ties. Google TV could become what Tivo grew to become with a operators, who started providing the service like a value-add option built-into existing boxes as opposed to a stand alone device battling to locate a place in living spaces already overloaded with a lot of products. But Motorola could finish up getting increasingly than simply a Trojan viruses equine for relaunching Google TV. A foothold within the family room could give Google the pipeline to push YouTube alongside existing multichannel packages when the right deals can be achieved with cable operators. Whether piping in YouTube as well as other video platforms like Hulu -- particularly if Google eventually ends up obtaining it -- the organization could empower MSOs to counter the benefit of cord-cutting by looking into making online-shipped content a part of monthly subscriptions. Google can also be situated to market specific advertising and measure viewership in ways more granular than Nielsen, that has been belittled because of its less-than-exact rankings system. "This is often a play a lot larger than just Google TV," stated Olds. "Bing is prepared to pursue the television market in additional ways than a single.Inch Contact Andrew Wallenstein at andrew.wallenstein@variety.com