DAILYHOSTNEWS, November 7, 2011 – Competition between cable providers could increase. That is if one internet giant is involved. A recent report by the Wall Street Journal indicated that Google is considering venturing into the cable industry.
The company has already announced a project to launch a high-speed Internet service in Kansas City (Missouri and Kansas), but it may also be considering adding on video and phone service to mirror the offerings of cable giants like Comcast and Time Warner Cable.
Details like pricing and the channel lineup remain unclear and the only other destination under consideration is Palo Alto. Still, should Google choose to go forward with the plan, it could represent a major challenge to the existing cable providers – especially given that Google has reportedly been talking to major players such as Disney, Time Warner and Discovery Communications.
Google would base the network on its own broadband service and, the Journal presumes, might offer lower subscription fees to undercut the competition. Other companies, like Amazon and Netflix, have also been investing in more original content as the future of TV grows a little hazier.
Just the other week, YouTube, owned by Google, announced it would be launching dozens of new YouTube channels with original programming, backed by high-profile names and companies like Jay-Z, Amy Poehler and Reuters.
Despite an increase in competition that the move could create, it could also present an interesting scenario. The U.S. government is still concerned with the tech giant over antitrust concerns.
Google provides search and advertising services, which together aim to organize and monetize the world’s information. In addition to its dominant search engine, it offers a plethora of online tools and platforms including: Gmail, Maps and YouTube. Most of its Web-based products are free, funded by Google’s highly integrated online advertising platforms AdWords and AdSense. Google promotes the idea that advertising should be highly targeted and relevant to users thus providing them with a rich source of information.