Google Inc (GOOG): Can This Tech Giant Win the Pay TV Game?

Possible solutions

Instead of fighting alone, Google may consider leveraging its strengths to partner with other major new entrants, such as Intel. While the content providers are focused on expanding online and on-demand channels for programming through current distributors, they usually give the best prices to the biggest distributors. With the partnership, Google can gain buying power.

Secondly, if Google Inc (NASDAQ:GOOG) has the same mindset as Intel on how to capture the market, it makes sense for both companies to work together to penetrate the target market instead of fighting each other while surrounded by all other existing players and other potential new entrants.

Lastly, the war between Google and Apple Inc. (NASDAQ:AAPL) may expand from mobile devices into pay TV market soon. While Google’s Android leverages its open platform to compete against Apple Inc. (NASDAQ:AAPL)’s closed system, it is easier for Google to leverage the same strategy and open up its platform to build alliances and partners.

Bottom line

It is not the first time Google is showing interest in the pay TV market. While other tech giants are moving aggressively into Pay TV, it is Google’s best interest to step in early rather than late. A partnership may be the easiest way for Google Inc (NASDAQ:GOOG) to penetrate the market by boosting its buying power while leveraging its strengths.

The article Can This Tech Giant Win the Pay TV Game? originally appeared on Fool.com and is written by Nick Chiu.

Nick Chiu has no position in any stocks mentioned. The Motley Fool recommends Google, Intel, and Netflix. The Motley Fool owns shares of Google, Intel, and Netflix. Nick is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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