Why Microsoft TV could crush Google TV

November 29, 2010 By Nick Mokey

An Internet TV offering from Microsoft could outperform a flailing Google TV, with smart content partnerships and the leverage of the Xbox 360 hardware.

With both Apple and Google now anxiously pawing at the door to consumer living rooms with products like Apple TV and Google TV, it should come as little surprise that Microsoft is apparently lumbering down from Redmond to poke its face in the doorway, too. Early reports suggest Microsoft is developing a paid television service that would use the Xbox 360 to pipe content to TVs. It may be just a sliver of a rumor at the moment, but the concept has legs. Here’s why a Microsoft-developed pay TV service could potentially bowl over Google TV.

Hardware

There were 18.6 million Xbox 360 consoles in the United States the last time Microsoft released numbers this time this year, and we’re willing to bet that number has seen a healthy increase since then (Microsoft claims 44.6 million worldwide, as of September 2010). Among the entire American population, that’s better than one in every 10 households, and if you’re in college, chances are you can find an Xbox 360 among your friends before you can find a toaster.

Microsoft doesn’t need to sell you a new box because you probably already own one.

If you don’t, it’s pretty affordable to get onboard. A Google TV box (the Logitech Revue being the only one, at the moment) will cost you $300. An Xbox 360 Slim will cost you $200, and if you really feel like skimping, you can pick up a refurbished Arcade model from Best Buy for $130. That’s almost Apple TV territory.

Inroads

Besides the fact that millions of Xbox 360 owners wouldn’t have to spend a dime for hardware to tap Microsoft’s TV service, slipstreaming onto an existing device has other benefits, too. The interface is already familiar, the box is already connected, and Microsoft can use updates to push the TV service in front of owners who might not otherwise seek it out.

Microsoft has already hammered out a template for video delivery on the Xbox 360, too. The latest fall update brought on-demand ESPN to the box, and Netflix streaming has been standard for over a year now. Together, they give Microsoft a technological testbed for streaming that should ensure the final product feels polished right out of the box, as opposed to the hokey beta feel of Google TV.

Licensing

Rather than partnering with major networks and premium content providers like HBO to offer content that other boxes couldn’t access, Google TV merely provided an interface for consumers to get at what was already there. Smart move in theory, bad move in execution. Within weeks of launch, ABC, NBC, CBS and Fox all cut off their free online streams to Google, Hulu had it blocked from the start, and what content remains is often fragmented and less than intuitive to access.

Microsoft, meanwhile, is apparently in talks to actually work with providers to deliver content, rather than merely acting as a conduit to deliver it. Besides the fact that working directly with providers will prevent content from being abruptly shut off, partnerships should also open up access to exclusive content, fresher content, more complete content, higher quality (1080p?) content, and hopefully, a more unified interface along the lines of what we’ve seen with iTunes on the Apple TV.

Showing 9 comments

Will at 7:46am 3rd January 2011 If XBOX steps in to this market, they will dominate it. The systems are already in our homes. They're already in the living room. MS knows the market they are thinking about getting into, because they've been there already with WebTV, the difference this time being processor power and Hard Drive space. Microsoft Marketplace is already established, the XBOX already streams media from home networks. Heck, they might even jump into the whole 'phone as a remote' idea with the new Windows Phone (although that is just my speculation). Google has it's work cut out if they don't make their systems better streamlined, and get the backing that they need before XBOX takes the limelight. I realy think the the XBOX will step into this market, because it's MS. They see an opportunity to get some money and take a market over, they do it. They're in the business of making money.
rxritalin at 9:59pm 5th December 2010 I have some issues with this article. Im not going to say its a total fail like the first commenter did, but there are some major flaws it. First off the hardware. Ok sure there are a ton of 360's in households across the US. The first problem and this is the small one is that there is no way to tell if this is in the living room or in the kids bedroom. This is a small issue as the unit could easily be moved, but now parents will need to give up TV time to their kids for game time. This is generally why the 360 was put in the kids room to begin with. Now I know that this is the video game generation and the likelyhood of some one 35 or younger having a 360 in the living room is pretty high, thats why this is the small problem. The large problem is that there is no number on how many of those 18.6 Million units are older models. We ALL know the glaring problems with the first generation of the 360. How are these units going to be able to withstand long periods of video playback, if they already have issue with just being on for too long. Also there are going to be a large group of audio and video nerds that will say no thanks to the noise of a hairdryer running up until it red rings. Now this is obviously NOT an issue with the second gen, ie the Slim, but that means that the number posted above is dramatically smaller. This is not to say that first gen owners will not get this service or that they will not want to use it. Its to say that there are issues with doing so and not admitting to them is disingenuous. Now to Google. I know everyone loves to hate on Google, but the fact is the platform is a serious contender. They have picked up another 3 big name TV manufacturers to compliment the partners they already have. Toshiba, Samsung, Vizio will be showing off Google TV units at CES very soon. The talk is that these manufactures which constitute about 90% of the Internet TV makers on the market will be dropping there other method of app inclusion for Google TV. Thats a pretty damn big sign of where this may go. Now I know some of you are still repeating the same tech gossip of Google TVs imminent failure, because they received a price cut. What you may fail to understand is that its a limited time offer for CHRISTMAS! Google is in talks with all the major studios as well. The most likely outcome will be that we see an ala carte, choose your studio type thing through the Market when it is released early next year. Hulu Plus is said to be on the way and NetFlix just got its update which is built of the same software version running on the PS3. Yea they hit a speed bump, yea they could have handled it better, but they are far from dead. What really surprises me is the number of people that point and laugh at Google getting blocked by the studios. WTF are you laughing? We should be in an uproar about this. Half you 360 fanboys would be ready to bum-rush the studio headquarters if this had happened on the 360. I dont see how you guys do not see that if one company manages to make this work and prove that it can still make the studios scads of money, then ALL of the internet ready products will receive it. Stop being so blindly loyal to a damn logo. As a bonus the Google TV community developers have just accessed the Recovery for the box and are working towards a custom recovery, meaning that custom roms WILL happen. As an even bigger bonus the hardware is x86 based and ports of XBMC and Boxee are already being discussed. If I can own a TV with Android AND XBMC built right in, then I may have just found nerd nirvana.
turdfergasun at 2:25pm 1st December 2010 ya this doesn't sound anything like a semi retarted balmer style marketing attempt. just blatantly disregard reality and say what you'd like to happen. i know i bet the zune will be an ipod killer too! lol, MS trying to be relevant is like watching your parent's trying to dance to rap music.
1. gey turd at 7:40am 5th December 2010 Is this jerry
Jason at 11:35am 1st December 2010 First poster this article is a reality, beyond everything said we are about to see Microsoft offer AT&T U-Verse through their product, meaning a cheaper price on owner hardware (also handles DVR as well). With that as well as Hulu Premiere about the launch there is so many options for the consumer out of one box its ridiculous. On top of that I have been streaming video and audio content from my computer for years now, I have a ton of video and audio files on-demand allowing me yet another option has an advanced user. The real problem for Microsoft is Microsoft, they don't know how to execute for the mainstream user on the Xbox platform. They need to simplify the interface further in order to be accessible by a larger audience. If they can take a page out of apple's play book they could be golden.
Steve at 1:57am 30th November 2010 Errr... beg to differ. Microsoft have been in the IPTV market for quite a while. It used to be called Microsoft TV, but has been re-branded Microsoft Mediaroom. http://www.microsoft.com/Mediaroom/PR/MSBTXBoxPR....
1. James at 1:01pm 1st December 2010 Add to this AT&T U-Verse, which is just re-branded Mediaroom, and you start to see that Microsoft already has bigger market penetration that Google and Apple *combined*.
it-tv watcher at 3:52pm 29th November 2010 This article fails on several points.. 1. there is no microsoft tv today.. just talk.. google is here.. and it's not just logitech it's also sony blueray tv player.. 2. supposedly pushing a software update sounds easy but is not.. the equipment has to support it plus then you have glitches to contend with.. 3. do not assume that just because microsoft is talking to content providers that any deals have been struck.. google too is talking to content providers.. 4. as to price well that is market driven.. if microsoft or anybody else makes real waves then prices will come down to competitive levels from everybody.. look to next summer/fall at the earliest before any microsoft reality makes it near tv's.. and thats a maybe..
1. ioman at 4:11pm 29th November 2010 Your comment fails too. 1. The Logitech Revue, and Sony Google TV's are not selling well. Sony just announced price cuts on their models. 2. Microsoft already pushes content updates through the Xbox 360. They know how to already do it. It is easy. You know nothing. 3. The article didn't presume that content deals have been struck. The title explicitly says "Could crush Google TV" and does not say that it is (since MS does not have a product yet) 4. Duh. Learn that in economics did we?