Google’s recently announced Google TV platform could prove to be dangerous to Redbox and Netflix by providing wider access to video-on-demand, according to one analyst.
William Blair & Co. analyst Ralph Schackart believes that Google’s new platform could enable Hollywood to “deliver less expensive (higher margin) VOD movies directly through connected TVs.” Schackart argues that such an eventuality would be detrimental to Redbox and Netflix’s market share. Said Schackart:
“We view Google TV as a platform other applications can layer on top of . . . It will enable premium movie sales from many [third-party] stores such as Amazon VOD, [Blockbuster On Demand, Vudu and Best Buy’s CinemaNow].”
Further hurting Redbox’s chances, according to Schackart, is the fact that the company continues to place its bets on cheap DVD rentals and lacks a “concrete digital distribution strategy.”
Do you think the specter of Google TV is causing boardroom bedlam at Redbox and Netflix, Insiders? If the new platform takes off, as Google hopes, do the two companies currently sitting atop the rental heap really have something to worry about? Give us your opinion in the comments.
(via Home Media Magazine)