I love Google TV, but it is struggling to keep its footing in the market

When Google merged Android TV and Chromecast under the unified Google TV interface back in 2020, it was a clear and ambitious play to own the living room. The goal was to create a content-first discovery platform that could also serve as a lucrative new revenue stream through advertising. But according to a new report (via Android Authority), it seems that behind the scenes, Google’s efforts are not going as planned; and the platform is facing some serious challenges around ad revenue, fierce competition, and even internal conflict with its own sibling, YouTube.

The ad revenue problem

The core of the issue, according to the report, is that despite spending millions to make Google TV an attractive platform for advertisers, Google has yet to make a profit on its investment. With costs “exploding,” the company is reportedly being forced to re-evaluate its strategy.

In what the report calls a “desperate attempt” to generate more money, Google is said to be giving up control of ad slots to streaming service providers in exchange for a smaller commission. This is a significant move, as it runs counter to the strategy of competitors like Roku, who reserve ad slots for themselves and claim the full commission.

Fighting an uphill battle in the U.S.

These revenue struggles are happening against the backdrop of a tough U.S. market. While most U.S. households own a smart TV, only about 10% of them are running on Google TV or Android TV. The market is largely dominated by Samsung’s Tizen, LG’s WebOS, and Roku.

Meanwhile, competition from Amazon’s Fire OS is intensifying. The report notes that Amazon recently partnered with Hisense to launch TVs with its Fire TV OS, replacing Google TV from the brand’s previous lineup. Amazon is also reportedly incentivizing retailers like Costco with “bounties” of up to $50 per TV activated to push its Fire OS-based devices.

Competition from within

Perhaps the most fascinating and troubling part of the report is the idea that Google TV’s ad business is being cannibalized by its own cousin: YouTube. YouTube now accounts for a massive 25% of all streaming service views in the U.S., making it a juggernaut in the living room. As a result, Google’s own sales teams are reportedly forced to prioritize selling ads on the proven winner, YouTube, over the struggling Google TV platform.

What this may mean for the future of Google TV

All of this paints a picture of a platform under pressure. The report suggests that uncertainty looms around Google TV’s future, and that the company is looking at shorter-term partnerships with TV manufacturers, which isn’t a great sign of long-term confidence.

While none of us love ads, we also don’t want to see Google abandon yet another service that many of us use and enjoy. It’s a situation we’ll be watching very closely, and hoping for Google to find a way to right the ship somehow.