Google Has Reportedly Cut its Smart TV Budget by 10%

Google has reportedly cut the budget of its smart TV team by 10%, according to a report from The Information, citing people familiar with the situation (via Android Police). The budget cuts are said to be linked with recent layoffs at the Google TV division, despite Google planning to revamp the smart TV platform with its Gemini AI later this year.

Google TV is what powers the Google Chromecast with Google TV, the new Google TV streamer, and various smart TVs and media players made by third-party manufacturers. Back in September, Google announced that there are now over 270 million monthly active Google TV and Android TV devices on the market. However, it’s hard to see Google taking its smart TV platform as a priority despite aggressive competition from Amazon, Roku, and built-in software experiences from Samsung (Tizen) and LG (webOS).

Still, a Google representative shared the following statement with The Information. “We continue to invest in Google TV with new user experiences including the upcoming integration of Gemini. There are more than 270 million Android TV devices, and we remain committed to growing this ecosystem with an exciting road map ahead.”

According to the report, the budget cuts affecting Google’s smart TV team come at a time when the company is focusing more on YouTube as its main entertainment platform. Earlier this year, YouTube CEO Neil Mohan boldly claimed that “YouTube is the new television,” with TV now being the primary device for YouTube viewing in the U.S. YouTube also brings Google a lot of revenue through advertising and premium subscriptions like YouTube Premium and YouTube TV, which has 8 million subscribers in the US.

The Information reports that Google would like to take the platform into new directions to better compete with streaming platforms like Netflix. YouTube recently hired long-time Disney executive Justin Connolly as its global head of sports and media. The move quickly led Disney to file a breach-of-contract lawsuit against YouTube and Connolly.