Google cuts Google TV budget by $500 million, betting on YouTube streaming

Google recently announced a significant budget cut for the Google TV project, up to 10%, totaling about $500 million (about 3.591 billion yuan), and laid off about 75 employees, accounting for 25% of the total number of the team. This move caused a shock in the market, but Google officials immediately emphasized in a statement that the company will continue to invest in the Google TV ecosystem, including integrating the Gemini AI model to enhance the functional experience of more than 270 million existing Android TV devices.

However, the budget cut is not accidental. As a pre-installed system for devices such as TCL and Hisense, Google TV is facing fierce competition from Roku, Fire TV and Apple TV. This adjustment marks Google's strategic focus shifting to YouTube and its related products. Sources revealed that Google may further transform YouTube to make its interface and functions closer to streaming giants such as Netflix or Disney+ to increase user stickiness and tap into subscription revenue potential, although the plan has not yet been officially confirmed.

At the same time, the integration of Gemini AI is expected to bring upgraded features such as voice control, smart navigation and personalized content recommendations to Google TV. Google said the move is aimed at focusing on "platforms with a broader user base and greater growth potential" and optimizing resources to cope with the fierce competition in the streaming market. Industry analysts believe that this strategic shift reflects Google’s ambition to integrate AI and content services, and may inject new variables into the global streaming landscape.