Edgar Survints / Android Authority
tl; drag
- Google is reportedly having difficulty receiving tax from its Google TV platform.
- Now it has resorted to reducing its commissions to advertisements to encourage advertisements.
- Google is experiencing heat from rivals like Samsung Tizen, LG’s Webs, Roko, and Amazon’s fire OS in the United States.
Back in 2020, Google integrated its Android TV and Chrome cast efforts and launched a Google TV interface aimed at increasing discovery. Although the focus of promoting related content – mainly to view the date from your preferences and different streaming apps installed on TV – Google has also worked hard to create ads in addition to the license fee paid by TV manufacturers, in addition to the continuous injection of advertising.
However, efforts seem to be more in favor of Google. According to a recent report Stuffy (Paywald), Tech Dev, whose most important source of income is ad, is struggling to make enough money from advertising on the TV platform.
The report states that Google has spent millions of dollars on advertisers to make the platform profitable, but it still has to make a profit on its investment. And with “costs exploding”, Google has been forced to re -evaluate how much he wants to invest. In a disappointing attempt to generate more money from Google TV ads, it is controlling the advertising slots and freely offering them streaming service providers to publish their apps on the platform in exchange for commission.
This approach is against what other brands such as Roku and Visuals work, where they protect some of the ads inside the apps, and they claim to have a fully commission. Google seems to have now targeted the panic button and is abandoning control of these advertising sites, according to StuffyReport
Google’s panic can also be supported by its share in North America’s smart TV market. Although Park Associates owns a smart TV of more than two -thirds of American households, only 10 % of them use Android or Google TV. The percentage is more than worldwide, where about a quarter of a Google interface is sent to TV. However, it also calculates an “operator tire”, which is highly customized by TV manufacturers or companies by companies running, which takes a significant part of Google’s income.
In the United States, where Google can gain more control, the smart TV market dominates Samsung, LG, and Roko. Meanwhile, Amazon, which is currently about 5 %, is increasing the pressure on Google by engaging in aggressive retail appointments. Stuffy The notice Amazon recently contributed with Hesse to launch smart TV with his fire TV OS – replaced Google TV from the brand’s previous lineup. Amazon is also allegedly encouraging retail partners like Costco to sell its fire OS -based Hyns TV, which has been activated per TV.
This is Google TV vs. YouTube
Joe Mark / Android Authority
Increasing the platform problems, the revenue of Google TV ads is apparently being made through its cousin, YouTube. In particular, YouTube ideas about smart TV have increased permanently over the past years, and currently shows 25 % of ideas that all streaming services are received in the United States. As a result, Google sales teams are forced to prioritize it on the Google TV platform. It also resulted in budget cuts and holidays on the Google TV team, as reported in June.
Therefore, unlike Android, Google TV has not given a monopoly to the Tech Dev, which was expected. But what does it say about the future of the platform? We are not sure yet, but it doesn’t look bright and shiny for the team. For now, Google is watching a short -term partnership with TV manufacturers, and is suffering from uncertainty around Google TV.
Although we hate ads, we believe Google will not withdraw from any other service. However, this may mean that Google returns its efforts and prefers other profitable routes.
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