Google TV allegedly doesn't earn enough money and loses viewers to Amazon

Google TV is pre-installed on millions of modern smart TVs with an internet connection and enables the use of various streaming services and other apps. To convince TV manufacturers to use this Android-based TV operating system, Google pays certain premiums per TV set sold. To finance this, Google places ads within the platform. However, this allegedly does not pay off, meaning that Google TV is losing money.

Google TV is now extremely widespread. Launched in 2014 as Android TV and supported by external Chromecast devices, Google has also brought streaming to TVs that were previously not connected to the internet. In 2020, Chromecast and Android TV were unified under Google TV. In September 2024, as part of various updates for Google TV, Google revealed that the smart TV platform already has 270 million devices with Google TV or Android TV in monthly use. This figure is now likely to be over 300 million devices.

Amazon is competing with Google TV

However, as the majority of these devices are sold and used outside North America, monetization is problematic for Google. Google therefore leaves this to the local TV network operators, who can adapt the platform accordingly. This reduces Google's revenue. At the same time, competition is growing. Amazon, for example, is launching smart TVs with its Fire TV operating system that do without Google TV, which is eating into Google TV's market share.

At the same time, Amazon is said to be paying higher premiums, both to TV manufacturers and wholesalers, reports The Verge (also on Lowpass without paywall). Although such agreements are confidential, according to various sources, Amazon could pay up to 50 US dollars per activated TV. Google also pays such premiums, but allegedly less. Hardware partners are now wondering whether Google TV is worth the lower revenue.

YouTube TV with higher priority at Google

YouTube TV is outstripping Google TV within the group. At the beginning of this year, televisions overtook cell phones on YouTube, at least in the USA. There, YouTube is watched more often on televisions than on cell phones. However, YouTube TV in the USA also includes traditional TV offerings. In North America in particular, selling advertising for YouTube TV should therefore be a higher priority for Google than for Google TV. At least that's what YouTube managers want.

However, Google TV no longer seems to be a favorite at group level either. In June, The Information reported on redundancies at Google TV. However, these are said to have been group-wide cuts that also affected the Smart TV division. However, sources report that Google is increasingly dissatisfied with the premium payments to TV set manufacturers and dealers for Google TV. So far, payments are still being made, but Google seems to be reviewing this strategy at the moment.

(fds)