I HEART CHAOS

Google has already committed to providing free high-speed internet in both Kansas City, KS and Kansas City, MO and now they’re taking it a step further by pondering getting into the cable TV biz on the back of this free high speed service. 

Google has discussed distributing major TV channels from companies like Walt Disney Co., Time Warner Inc. and Discovery Communications Inc. as part of the video service, though the discussions were exploratory and no final decisions have been made.

In September Google hired a former cable-TV executive, Jeremy Stern, who is spearheading talks with media companies, some of the people briefed on the plans said. A Google spokesman said the company doesn’t comment on rumor or speculation. Spokespeople for Disney, Time Warner and Discovery declined to comment. The discussions underscore the intensifying battle for control of the TV set. In recent years phone companies have jumped into a market previously dominated by cable-TV operators and satellite-TV providers. Now companies such as Amazon.com Inc. are bulking up their content offerings, while Apple Inc. and others are trying to reinvent the viewing experience with iPads and other devices, and potentially a new type of television set.

Meanwhile, Comcast Corp. and other incumbent cable and satellite operators are fighting back, creating their own apps and lining up Internet-rights to programs that tie into their existing offline TV subscriptions.

Much is at stake. Television reaps more than $150 billion per year in the U.S. from advertisers and consumers paying monthly fees. Google, the biggest seller of ads on the Web, wants to snare a share of the TV ad dollars. And with its latest plan, Google threatens to undercut cable and satellite companies in subscription fees it may charge consumers.

Google’s other efforts also threaten to undercut the lucrative subscription TV business model by fueling the availability of less costly online video. Just last week, Google unveiled a series of deals with celebrities and production companies to create roughly 100 free, ad-supported online “channels” for its YouTube online video service. Google has also launched Google TV, software that can be installed in TVs or on cable TV set-top boxes and helps people search and find content to watch from the Web and broadcast channels. Google released a new version of the software last week, after the first was slow to be adopted by consumers.

Via