Marvell Replaces Intel As Google's Lead Chip Partner On TVs
January 05 2012 - 9:16AM
Dow Jones News
Marvell Technology Group Inc. (MRVL) is replacing Intel Corp.
(INTC) as Google Inc.'s (GOOG) lead chip provider for TVs as the
Internet giant seeks to bring down the cost of the devices to raise
their popularity.
The first generation of Google TV, which allows users to search
and access the full Web via TV sets and set-top boxes, struggled to
gain traction with consumers and faced resistance from major
networks. The device's high price point and complicated interface
failed to appeal to users, who instead turned to offerings from
companies such as Apple Inc. (AAPL) and Silicon Valley startup Roku
Inc.
But Google hopes the collaboration with Marvell will enable
powerful products at attractive price points and help it grow its
ecosystem of manufacturers and devices. For Marvell, the
partnership marks a push into a new market and closer relationship
with Google.
"The way consumers are operating their work and their life is
very different," Marvell co-founder Weili Dai said in an interview.
"What we're doing here is revolutionizing today's so-called dummy
TV and dummy set-top box at home to be dynamically smart."
Much like Google's partnership with smartphone and tablet chip
makers, its TV agreement with Marvell isn't exclusive. Other
semiconductor companies will also be able to provide processors for
the products, though Marvell said it has a lead over its
rivals.
Marvell--best known for its hard-disk drive chips and processors
for mobile devices--plans to demonstrate Google TV running on its
processor at the Consumer Electronics Show in Las Vegas next
week.
Google originally unveiled its Google TV software to much
fanfare at its developers conference in 2010 and rolled out its
first products with chip partner Intel and hardware makers Sony
Corp. (SNE) and Logitech International SA (LOGI) later that year.
Google TV was part of the company's broader push to become a force
in the distribution of television shows, movies and other media
content. But its partners have reported lackluster sales, reviews
have been tepid, and not all Internet content has been available on
the devices, including the popular Hulu video-streaming site.
Logitech International, which made the Revue set-top box and
special keyboard built on Google's technology, in November called
its effort to make a set-top box for Google TV "a mistake of
implementation of a gigantic nature." At that time it said it had
no plans to make future Google TV products. And Intel recently
scrapped plans to push its chips for TVs, instead focusing on
smartphones, tablets and PCs.
To address some of the issues, Google in October updated the
software for Google TV, simplifying the product and improving the
way people can simultaneously search for content on their live TV
listings, Google's YouTube video site as well as on-demand shows
available on Amazon.com Inc. (AMAZ) and Netflix.com Inc. (NFLX). It
also struck new deals with device makers and TV makers such as
Vizio Inc. to bring to market new Google TV-powered devices in
2012.
"There was a big improvement with the updated software, giving a
much more graphically rich version of the user interface," Parks
Associates analyst Kurt Scherf said. He noted the prior version of
Google TV was heavily reliant on a physical keyboard and
disappointed many users who were looking for something radically
different.
Marvell's Dai said the second generation of Google TVs should be
more successful than the prior iteration, with the company's chip,
dubbed the Armada 1500, allowing more mainstream pricing for the
products. The semiconductor integrates various functionalities on
one chip, which lowers the cost.
"The key is just like the smartphones of the world, you have to
make [Google TV pricing] mainstream," she said. "At the end of the
day, you need all the features and capabilities you want, but the
price point has to be right."
Google TVs should hit the market in the first half of the year,
Marvell said. The company declined to name TV manufacturer
partners.
-By Shara Tibken, Dow Jones Newswires; 212-416-2189;
shara.tibken@dowjones.com
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