Google Challenges Apple TV

Google (NASDAQ:GOOG) has made its NSZ-GS7 TV set-top box available through Sony (NYSE:SNE) Europe on pre-order for only $200, including a remote. This is a dramatic drop from the $1,000 price tag on LG TV sets that feature the Google TV service currently.

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Google, along with tech peers Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN), has long been in the wings to bring the Internet into the TV viewing experience. Apple too has a box device that pipes content from iOS devices onto the TV screen. But the market has waited with bated breath on Apple launching a TV that has iOS inside, and this may soon be a reality, judging by Apple partner Foxconn’s recent investment in TV maker Sharp. Google counters Apple’s hardware advantage with its huge video store residing in YouTube.

Hardware and software issues aside, the merger of the Internet with the mainline TV industry could have a major impact on another market – advertising. Current trends weigh heavily in favor of TV, with U.S. advertisers spending almost double the amount on TV compared to online spending. These boundaries could vanish if TV and the internet start to exist seamlessly in American living rooms.

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