NEW YORK ( Trefis) -- News Corp. ( NWS) and CBS ( CBS) announced recently they will be blocking Google ( GOOG) TV from offering their shows for free over the Internet. The move mirrors the strategy previously employed by other media companies like Viacom ( VIA).

So what's provoking these media conglomerates to take action against Google TV?

Rise of Online Platforms Threatens Key Revenue Streams

The broadcasters are concerned that allowing Google TV users free access to their content could threaten critical revenue streams -- advertising revenue, programming rerun revenue, and regular carriage fees from pay-TV providers.

As CBS CEO Leslie Moonves said: "The mother lode is network advertising and syndication. Do I want to jeopardize that -- yet -- for a couple of bucks?"

Pay-TV service providers like Comcast ( CMCSA), Time Warner Cable ( TWC) and DirecTV ( DTV) are also growing concerned with the rise of online platforms that offer content at cheaper rates. The last thing they will want is Google impeding on their TV viewership foothold.

Watching content on your computer is one thing, but the ability to conveniently stream the same range of content on your TV (for free) could add a new level of competition that pay-TV providers are likely hoping to avoid. Consequently, we believe that there is going to be pressure from the pay-TV providers, in addition to broadcasters, to hinder Google TV's expansion.

Lost Ad Revenue Will Necessitate Higher Content Acquisition Costs

It's estimated that the prime-time shows viewed over the Internet have about four minutes of advertisements per hour compared to 16 minutes for regular broadcast. Since ad revenue is directly related to the number of advertisement slots, it is likely that Google won't be able to compensate broadcasters for the loss of ad dollars resulting from a shift away from traditional TV towards Internet viewing.

The traditional TV advertisement market is still very lucrative, with about $180 billion of expected global sales in 2010. This is still three times the size of Web advertising. Clearly, Google would like to grab a piece of this market, but unless the company can fill the ad sales gap it may not get its hand on much of the content.

News Corp Ad Spots -- via Fox Network

CBS Weekly Ad Spots -- via CBS Network

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