Google has run into its first major roadblock as it tries to get users to embrace Google TV, with ABC, CBS and NBC now reportedly blocking content from Internet shows. TV networks rely on advertising money and fees collected from cable and satellite service providers, so the Internet being used as a middleman undercuts their business.
Broadcasters and content providers understand there is a growing Internet-based viewership, but struggle to monetize this content.
The search engine company is in active negotiations with ABC, CBS and NBC, hoping to find a resolution as soon as possible. As consumers look into testing Web-based services in the living room, it's up to providers and content holders to work together or they will both fail.
This is a fascinating power struggle that Google may have to expect from other major partners looking to sign on -- the broadcasters may be able to get the upper hand on Google, as they want stricter controls against piracy. Google also hopes to bring Hulu to Google TV in the future, so a deal with some networks now could help make negotiations easier later.
As interest grows in Google TV, not all news is bad news for Google and its current partners. MTV and FOX are currently onboard with Google TV, however, shows such as NBC's The Office have now been blocked.
Sony and Logitech are integrating Google TV into their products while other manufacturers show interest, but these types of problems pose significant long-term problems for Google TV. There are numerous set-top boxes and streaming services -- and even more expected in 2011 -- so Google needs to resolve these problems quickly.
