Logitech Bails from Google TV after $100M Failed Investment

You can't blame consumers for not “getting it” when it comes to set-top boxes.

Consumers don't want a keyboard when they are viewing television. They want simplicity, usability, and content. Google GOOG TV failed on all three of these counts. The largest failing was the inability for Google TV to provide useful content to its users. And it had a keyboard as a remote with a bunch of other buttons you didn't want to press. The Google TV content partners had some gaping holes in their lineup and it never gave users a killer app that made it a must-own.

A Motorola in the Mist

The 800 lb gorilla in all of this is that Google bought Motorola MMI which not only makes Google Android-ready handsets, but also makes set-top boxes. If you have Comcast or Time Warner, you're used to the Motorola boxes with their mid '90s era interfaces and early 2000s level of technology. Theoretically, Google could send a software update to these boxes (with the consent of the cable companies) to add Google TV-like capabilities to these boxes. In the meantime, Logitech has an inventory problem of their hands. And not the Apple AAPL kind of inventory problem, but one where you made tons of devices and shipped them to outlets only to receive a “meh” response in the press and consumer sentiment.

If Google TV has any hope the company needs to open it up. Make it fully developer-friendly to produce apps on it and you'll see uptake in the leading-edge, early adopter community like you saw with the first Android phones. Go after the growing segment of cord-cutters. People are sick of paying $100 for cable when they only watch about four shows and six channels. Then slowly, mainstream people will adopt it as they see all of the capabilities of a $99 device in a post-cable/satellite tv reality.