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Zacks Stock Strategist Brian Bolan on reports Google is developing a new home entertainment system and how it would compare to Apple products already ...
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Syria and thank you -- Google taking a swing out of apple according to reports the company is developing our home entertainment system Google is.
That would stream music from Google's online music service throughout the home.
But is it Smart for Google to leap into the hardware business and take on tech rival.
Apple's -- -- for anyone to take on apple -- taste.
Here with this now is Brian Boland stock -- -- he's also the editor of the home run investor portfolio.
Service Brian great to have you here so we just -- Dennis is report about people's viewing habits going smaller and smaller so.
What's Google thinking with this home entertainment idea.
Well you know the home entertainment thing isn't really fully known yet what they're gonna deal but I do believe what they're gonna have is something based off of the android operating system so.
As people are watching more things on their mobile phones probably a device that's gonna sit in between the mobile phone and the home theater.
So something just like a roku device something -- -- there that will.
Take in broadband.
And then translated back here big screen TV or your sound systems that you'll be able to play your music from your phone -- How -- that different from a tablet -- iPad or any other kind of tablet device.
Right at -- I think you know the big thing that we've seen over the last several years is the sales of the -- -- right so we've seen millions and millions of iPods sold in.
This is primary that the primary device right now that people are using to play their music.
-- that's what we're led to believe from all the -- so.
You know why would Google want to get in this market it's clearly saturated that's clearly over -- overdone.
It's because over the future they're gonna wanna be the point of intersection between people and media consumption Brian -- -- be able to advertise.
Isn't the trend and this is certainly -- apple TV is gonna try to do did it take to cut out the middleman to cut out that middle device.
To go right from the streaming universe in the ether smear.
Right into your television that's an apple TV's gonna try to do and that would make this idea the -- platform that should talk of obsolete.
Yeah I I think that's exactly what Google's trying to do -- it's -- the race to see who can do with the best first.
You know a product a service like roku is out there right now that takes dreaming -- streaming services via the web right to your flat screen.
You know what Google wants to do is be able to control that the way that roku kind of controls that right now and a few other services so.
Once Google can really get a firm grip on it then it's -- they're going to be able to sell more advertising.
Direct to a targeting consumer -- Doesn't Google have to have a stream act it's at its Beck and call something like Netflix for example which leads me to ask won't.
Who will -- Netflix might they not by Netflix to do this.
Yeah -- I don't think Netflix is really the solution that they're looking at right now what they want to do is sit in between.
The device and the content providers of the content provider could be Netflix or it could be.
Something like the SEC the Southeastern Conference where the NHL or Major League Baseball or any other the developer of contact.
That content will be available via the web and then seeing HD on their big screens but you need you want Google to be there in between -- that they can monetize that.
Just as blogs are monetized by Google.
He shows these programs can be monetized directly and it in a highly targeted manner.
To me more -- about that idea Google entering the hardware category actually manufacturing designing this hardware we know Google TV and Google phone weren't exactly huge hits.
He added did the Nexus One -- Google kind of produced there along with HTC was not a smash hit and Google TV.
Which -- is I think as Logitech -- see that.
That help them with the physical hardware design there.
Obviously you know those products weren't huge sellers in the market place so.
This type of product again is something that we're gonna kind of you know test and test the waters and see how it goes but for the most part.
It's gonna be very small on -- revenue -- or expense basis when you look at Google as a whole right I mean and most the money.
In over seven billion dollars is just in search so.
-- and the very small amount of money could you know really be at risk here.
But at the same time it's gonna be in new foray for the analysts the -- ask more questions about Brian ball in from -- Brian good to see -- thanks for coming and have a good weekend.
Thanks for having me guys --
