The list of companies that believed that they could make the TV into something more than a dumb screen include Tivo (TIVO), Sony (SNE), Intel (INTC), and many private companies, most of which are out of business.
Google (GOOG) has decided it is its turn to transform the entertainment consumption habits of Americans. The search company will use its Android operating system as the basis of new set-top boxes that will power the signals to televisions. Google TV, as the project is known, will allow consumers to use applications like Twitter on their TVs. The Google product will probably have a small key board. The Android system is adding apps every day as programmers vie for profits that may or may not come from their association with the new Google software platform.
Reuters says that Google TV will be launched with the help of Intel (INTC) and Sony (SNE). The companies have something to gain and very little to lose if the search engine firm’s initiative does not work. Sony will sell some TVs and Intel some chips. It will be net new business for each–an unexpected bonanza if Google can make its project work.
It is improbable that consumers will use their TVs for access to Twitter. The social network system works fine on wireless handset and PCs. Twitter and many other applications like GPS and news and entertainment applications work best on portable devices. A TV is a TV. It is what it has always been–a stationary device for premium content and sometimes video games.
TV is a wheel and it is not likely to be reinvented.
Douglas A. McIntyre