What do you get when you combine one of the leading electronics giants in the world with the global leader in information technology? Apparently, a multimedia experience guaranteed to give you value for your money. The electronics division of LG Corp. is looking into the possibility of a deal where it would carry Google TV on their new line of television sets.
Google TV is a result of research and development carried out by Google, Sony and Logitech. The intention is to carry the Google TV platform on Logitech set-top boxes, hooked up to Sony television sets. But with Google looking to widen their horizons, LG seems to be the perfect partner to take their product to the masses.
WHY LG AND GOOGLE?
LG is the second largest electronics manufacturer in South Korea and frequently features in the list of the top ten electronics companies in the world. Furthermore, it has a strong presence in every continent, which is ideal for sales of their products in large numbers. Also, LG have experience in producing web-connected television sets. It recently launched its Netcast service, which offers viewers web services such as YouTube, CinemaNow and Pandora.
Google is one of the, if not the, most recognizable names in the world of business, thanks to their revolutionary products in the field of computer software, and more recently, mobile platforms. Their mobile operating system “Android” has already taken a huge chunk out of the market share of the major players in the field such as Symbian. It is estimated that about 160,000 new Android users are getting added every day. It is this very operating system that forms the basis of Google TV. The set top box manufactured by Logitech will have an Android based platform. Work is on to directly incorporate Android into television sets for future models. Furthermore, the systems will be powered by Intel Atom based CE4100 consumer electronics system-on-chip (SoC). Plans are afoot for LG to launch an application store, which can be accessed through these sets, to download certain features and widgets. So now you can use Google Chrome to access Twitter or Picasa right in your living room, on your television set. All these factors coupled together seem to make this business venture a match made in heaven.
But sceptics within LG are worried about the consequences of such a project. LG doesn’t want Google to be piggybacking on their hardware and becoming a leader in the software realm. As previously mentioned, LG offers a similar service called Netcast, and with the launch of this platform, LG’s own offering may sink without a trace. On the other hand, a business tie-up with a company as Google, which has great brand recall among customers, could be viewed as a strategic move to boost sales. The market share of LG and its company results saw a decline in the economic downturn, and the launch of Google TV on its television sets could help it recover some of its lost sheen.