http://www.lostremote.com/2011/08/15/why-googles-motorola-acquisition-is-a-huge-tv-play/
Why Googles Motorola acquisition is a huge TV play
Google announced this morning that its sweeping up Motorola Mobility for $12.5 billion, a whopping 60% premium over Fridays close. Youve likely read that the acquisition will give Google access to a fresh crop of patents and allow it to more seamlessly integrate its Android operating system with Motorola handsets. But its also Googles biggest move yet into TV.
Motorola is the largest provider of cable TV set-top boxes in the U.S. In fact, the set-top box business accounted for about 30% of its revenue and all of its operating profit in the first quarter, reported Chicago Business in May. Google has been trying to bring its same search and ad-targeting technology to TV for years. Now it has a beachhead in the living room and a big one.
You could imagine, for example, that Google TV software will power new iterations of Motorola set-top boxes. At the very least, it will power the Android TV app experience. Power up your cable TV, and suddenly you have access to hundreds (and soon thousands) of made-for-TV apps, which are under development right now for release later this year. Some of these TV apps will tie into second-screen tablets, like Motorolas Xoom, which is coming along with the deal. And perhaps, Google Plus will provide a social layer of some kind.
It also will unable cross-platform sharing of video content. Earlier this year, Motorola bought SunUp Digital Systems, which powers video delivery across devices with a payment architecture and DRM built in.
And on the back-end, Google gains access to viewer data at a scale its never had before. The data is what Google has needed to deliver targeted TV advertising and measure the results with a precision that linear TV has never offered. Motorola gives it real hardware in the living room, like Microsofts Xbox and Apple TV, that takes the set-top box maker out of the negotiation equation.
Googles odds of success with Google TV suddenly took a turn for the better.