Google’s push into the smart TV market has hit a turning point as the company quietly changes how it makes money from Google TV. Despite steady growth in users and pouring hundreds of millions of dollars into the platform each year, the tech giant is still struggling to turn that popularity into profits all while competing against aggressive rivals like Amazon and Roku.
The biggest challenge? Advertising. For years, Google followed the industry playbook: streaming apps wanting to be on Google TV had to hand over some of their ad space, which Google would then sell directly. This is how many TV platforms make money, including Roku and Vizio.
But last year, according to multiple sources who spoke to The Verge, Google scrapped that approach. Now, it gives that ad space back to content providers and only takes a share of the revenue they earn no more selling ads itself.
This shift is seen as an admission that content creators are better at selling ads on their own shows and movies than Google is a surprising concession from one of the world’s biggest advertising companies.
Google TV has expanded rapidly since merging Android TV and Chromecast under one brand in 2020, reaching 270 million monthly devices by late 2024. But much of that growth is in overseas markets, where making money is harder. Many international versions of Google TV are also heavily customized by local operators, leaving Google with fewer chances to profit.
Meanwhile, Amazon has been playing a different and expensive game. The company reportedly pays “bounties” of up to $50 per Fire TV device sold, helping it dominate retail shelf space at big chains like Costco. With Fire TV sticks often selling for as low as $30, these subsidies are a bold bet to grab market share.
Google offers similar incentives to manufacturers and retailers but nowhere near Amazon’s scale. This has sparked debate inside Google about whether it’s worth spending even more to compete especially since the platform still isn’t turning a profit.
When asked about the matter, Shalini Govil-Pai, Google’s VP and general manager of TV platforms, said the company remains focused on innovation, improving user experience, and expanding Google TV worldwide. She pointed to strong user ratings and global reach, but didn’t address the profitability question.