Google-Tivo Marriage?
Here's an intriguing, if not highly-speculative, thought fora Friday afternoon: Google spends some of its multi-billion dollar
war-chest to buy Tivo. The idea comes from Motley Fool's Rick Aristotle Munarriz,
who lists Tivo as one of Google's potential targets based on the
idea Google could serve up relevant ads to Tivo users because it
would know what shows you're watching and where you live. If this deal
comes to pass, Munarriz says Google could sell a subsidized DVR to
customers who would agree to receive targeted ads. Buying Tivo would
give Google a foothold in the TV market and it would only cost $500-million or so - a mere drop in the bucket for Google. Russell Shaw
buys into Munarriz's thesis, adding Google/Tivo could create
“one-to-one specials channels based on individual users location and
viewing habits”. Russell says a local Google salesforce
would the sell targeted Tivo AdWords or AdSense placements to
advertisers looking to pursue specific customer groups. I like the idea
of Google-Tivo because Google clearly has an interest in video, and
buying Tivo would give a well-known brand name, loyal customers and
technology that could easily be customized to meet Google's strategic
goals, which includes the need for more advertising vehicles/platforms.
It would also start the much-needed process to make Google more than
just a one-trick pony,
albeit a lucrative one, by launching the company into the $60-billion
television advertising business. It doesn't take too much imagination
to see a time soon when Google partners with the major
networks (ABC, NBC, CBS) or cable channels (HBO, Showtime) to offer
on-screen AdSense ads. At a time when large (40″+) digital TVs with
set-top boxes (some of them already Web-enabled) are becoming
more home entertainment fixtures, the idea of using the
remote to click on an ad to buy a boxed-set of “The Sopranos” while you're watching the show, sounds like money to me.
By the way, Munarriz's other potential Google targets are CNet.com, iVillage, AOL and TheKnot.com.
Of these, I think AOL makes the most sense because AOL accounts for
nearly 12% of Google's revenue. Buying it would protect this business
and give Google a huge amount of content and, more important, inventory
to sell even more advertising. I think this is the kind of blockbuster
deal Google needs to seize the iron while it's red-hot.
Of these, I think AOL makes the most sense because AOL accounts for
nearly 12% of Google's revenue. Buying it would protect this business
and give Google a huge amount of content and, more important, inventory
to sell even more advertising. I think this is the kind of blockbuster
deal Google needs to seize the iron while it's red-hot.
