If Google Fiber is going to be so profoundly profitable for Google, why is the roll out not much faster?
Google is about to make the sale of TV ads much more like ads on the web ..... "If you're a local business in Kansas City, just as with digital ads, you'll only pay for ads that have been shown, and can limit the number of times an ad is shown to a given TV" ...... Google clearly wants to turn the shotgun approach of broadcast advertising into a sniper's bullet. Which is good for advertisers, but less great for the networks selling airtime. ..... Google's new program will no doubt drive the cost of ads way down.
Los Angeles Times: Google TV Plan Is Causing Jitters In Hollywood: Many worry that Silicon Valley will upend the entertainment industry just like the Internet ravaged the music and newspaper industries. .... Google revolutionized the way people access information. Now it wants to transform how people get entertainment. .... enabling viewers to watch TV shows and movies unshackled from the broadcast networks or cable channels on which they air ....entertainment industry executives fear Google TV will encourage consumers to ditch their $70 monthly cable and satellite subscriptions in favor of watching video free via the Internet. ... Google doesn't yet know how it will make money on Google TV ....for the movie studios and television networks to use the limitless storage capacity of the Web to make their libraries of programs available whenever someone wants to watch .... Google touted the software as presenting a new opportunity to make more money from TV shows distributed online.... In demonstrations with network executives, Google TV confused one network's shows for a rival's. On another occasion, it listed the several ways a popular prime-time show could be watched online and on TV — except on the network's own website.
It's not just business models that seem to be struggling. The very first bottleneck is speed. Even with broadband it takes several seconds to load a static webpage. That is too slow. We need speeds that are 100X, perhaps 1000X.
There has been immense downward pressure on the prices of hardware and software. Software has become free for the most part. Hardware prices have come down drastically. But the ISP busines is so archaic, there the prices have been sticky. Capitalism is dysfunctional in the ISP business. Speeds don't go up, prices stay where they are. That is some major dysfunction.