“Connected TV is huge threat for all of us” said Xavier Couture, VP content at Orange, during a conference with TV broadcasters this month in France according to La Tribune newspaper.
Telcos viewed the connection of TV to the internet as their private backyard thanks to their set-top-box.
Broadcasters are worried that a connected TV may show advertisement on top of their program that will not generate a cent of revenue for them. Or a connected TV would be able to put their broadcast as a Picture in Picture and showing a related website or content but from another source like on these videos from Google presenting their plans.
Google TV presentations
But Broadcasters and Telcos have little leverage on TV manufacturers as they don’t buy any TV sets like mobile operators do with mobile devices.
Now the story is to be build by manufacturers. Do TV makers really need Google to provide compelling connected TV experience? If they don’t, will they be strong enough to resist the pressure? Sony has already boarded the ship, so the answer will most probably be no.
TV set manufacturers are on the edge of giving the key of this emerging and promising ecosystem to Google. If they do so, let’s hope they won’t complain afterwards of their low margins.