Google Can Change The Fate Of The TV Fraternity

Pay-TV providers are not content with the Way Google will change the Pay-TV dynamics.

For all company investors of Pay-TV, the debate surrounding the rules which have been proposed for the set top boxes spans beyond the boxes in general. The data that flows via them is relatively more important.

An initial vote was held by the Federal Communications Commission (FCC) last month regarding the rules which were designed in a manner that consumers got access to more choices in terms of Pay-TV content. The consumers make use of a set top box that has been rented via their satellite and cable provider or can be logged in on another device by making use of another device. As per the rules proposed, they will have the leverage to view content via the devices, software or apps that have been designed by others such as Alphabet Inc.’s Google or TiVo.

Pay-TV providers are not happy with the move. The issue is certainly the $20 billion rental fees per annum for them. Another major issue is that it would create vacuum amongst them and customers. Moreover, data will then be handed over to other companies like the search engine giant who consider television to be their next harbor in terms of advertising.

This might be appreciated by some consumers, but the issue for pay-TV providers is that they will have to pave way for the Internet giant to make its mark in the television fraternity. In compliance to the proposal, the FCC has asked satellite and FCC providers to come up with three “flows” if information readily accessible. As an add on to video programming, this encompasses the information regarding what content is accessible to consumer and how the device can make use of the content record. This is relatively different from an app based model which Pay-Tv providers are inclined towards.

GOOG has been working on these flows itself via the Google Fiber broadband and video service. However, it only succeeded in garnering 53,000 video subscribers by the end of the fiscal year of 2015 as per MoffetNathanson.

An Pay-TV provider’s open source stream content will thus be funneled via the tech behemoth’s device will change the fate of this industry. The company can expand its market reach without the need of making substantial investments in establishing a nationwide network and gaining subscribers and signing deals with media conglomerates.

All those subscribers who give up on the set top box are mostly likely to be still paying a company like DirecTV by AT&T and Comcast. However, any other device manufacturer or Google would dominate the user interface and in theory can also disperse the pay-TV content from other platforms such as YouTube. The manufacturer could also garner the data regarding consumer preferences so that advertisements surface accordingly.

Another concern that might of importance is that the tech companies can become the platform for content circulation. This will eventually make the Pay-Tv firms as mere utilities. It can also encourage the media companies to strengthen their relations with tech based firms out casting conventional distributors.