When Google TV launched in October 2010, all signs pointed toward success. But, lack of user and cooperation from major TV companies caused the previous signs to be meaningless. Other turnoffs included a poor operation system that was too confusing for users. Recently though, Google has announced that Android is updating the software for Google TV. The upgrade is planning on making the user interface much simpler and making it easier to scroll through the available shows. By employing android to perfect this update, Google is hoping to shift the demand of Google TV outward. They are hoping to raise the equilibrium price to a level similar to what was originally predicted after Google TV’s launch in 2010. Another reason for Google’s attempt to shift the demand of Google TV is to try to make it a more desirable substitute than its competitors. Right now Companies like Netflix, Apple TV, and Amazon instant video have become greater demanded substitutes for Google TV. This software update may be the increase in “curb appeal” that will bring upon Google’s command of the TV streaming market.
1 comment:
I agree that Google TV is trying to create incentive for consumers to buy their product but can consumers really shift the demand so greatly that it will be more desirable than other competitors? Competitors like Apple TV, Netflix, Hulu, and Amazon have been around longer and have the trust of their consumers. I don’t think that Google TV has the ability to change the elasticity of demand for consumers that already own Apple TV or use Netflix, Hulu, etc. For example, almost all users of Apple TV own the Apple iPhone and whatever will play on your iPhone will also play on Apple TV, and will appear there at the touch of a button. Note that 44%of the world’s phone users are owners of iPhones, according to an Apple blog. So who does Google TV target? They go for the consumers who aren’t yet a part of the internet TV phenomenon; this where Google TV can make their money. It’s not they offer so much more than other competitors but they do offer something new that hasn’t been seen before in the Internet TV economy: logarithms. If Google knows your viewing habits as well as your search habits, soon it will get a pretty complete picture of what products and services you're likely to be interested in, and serve you ads about them directly to the device many people spend the most time looking at. In conclusion, I do think that Google TV has an opportunity to be a forerunner in the Internet TV economy, but not because of an Android update.
- Taylor E
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