Google has recently launched Google TV, which has attracted widespread attention in the industry. What implications does it bring to our domestic internet TV industry? In short, Google TV actually constructs a very complex industrial environment and establishes a five-layer cooperative platform with its own technology at the core. Taking each element of Google TV, we already have them, and we talked about these concepts years ago. For example, using a mobile phone to directly control the TV is something we proposed long ago. So, what's new about it? In fact, it does two things.
Firstly, Google created its own product aggregation environment. Whether it's content providers, service providers, transmission providers, distributors, TV manufacturers, or chipmakers, the entire system is divided into five layers. Each layer adopts completely different cooperation models, which can be described as contractual models from institutional economics. In the context of new media industries, how we establish new structures and new contractual relationships with all parties is the first thing we need to see. Simply signing cooperation agreements is not enough. Those who succeed in this aspect always have an excellent technical platform. This technical platform can realize a very effective and complex contractual relationship, allowing both upstream and downstream partners to benefit from their cooperation. Therefore, I would like to remind everyone that there are many new technologies involved here. We see that Google TV uses the Android operating system, which was originally for mobile phones. Why does Google put this mobile operating system inside? It essentially shields the differences and complexities of underlying hardware, enabling application development on a single platform. Not only can it achieve the convergence of three screens, but also four or five screens in the future.
The second thing Google did is related to the format and encoding of Web media containers. Some people say that the profit margin for internet TV is very small. Why? Because its business model is still broadcasting, and the business model of broadcasting is advertising, where reception is free. We just added a transmission fee - cable TV fees. If we don't break through and continue to follow the path of traditional broadcasting, doing TV on the internet will merely take a slice from the original cable TV pie. The size of the pie is fixed, and such a model has no future.
How can we solve the problem of broadcasting? Currently, the most fundamental encoding technologies are end-to-end, serving communication and broadcasting purposes rather than interactivity. New media needs to create a completely open new media structure. For instance, Google promotes the open-source project WebM (WebMediaProject), allowing direct interaction with media itself. This brings enormous opportunities for new media. If we remain stuck with the current end-to-end encoding methods without breaking through at the fundamental technical level, regardless of how large the scale, how open the market, or how many participants, the entire industry will not be profitable.
I am optimistic about internet TV, but if we don't work hard on a few key points, we will gradually enter a dead end. I believe the entire industry needs a clear overall structural understanding and breakthroughs in key technologies. Google has maximized the use of its key technologies. Additionally, I have another feeling. Our current internet video experience is still far from satisfactory. For users watching TV, having abundant content is not the most important factor; what matters is how to let them get their favorite content in the simplest way possible.
Many content industries have developed valuable content, but 90% of our TV dramas cannot be broadcasted. This is due to limited channels, time constraints, and the limited prices that TV stations can offer. Why can't so much creative content reach the end users? This is because the value chain hasn't been fully penetrated or the value system hasn't been realized. A simple example is the smart grid in the U.S., where the cost signals of power generation were not passed on to the end users, and the end users had no way to control it.
The basic starting point of the smart grid is pricing by pathways, and such a policy has driven a massive industry. Talking about broadcasting is similar to power generation. When you break through, it’s not just differential pricing; you need technical means to pass it on to the user, and allow the user to make choices. If the user finds it troublesome to choose, you provide services to help them select. At this point, we can adjust the entire system to its optimal state.
For today's internet TV, the fundamental issue lies in achieving breakthroughs at the industrial level and in technologies related to industry and contracts. After these breakthroughs, we can truly see the future of internet TV.
This article is reprinted from Asia Satellite TV Portal | http://www.wxtv.org/
Original address: http://www.wxtv.org/32/20100531/727.html