Google Slashes Smart TV Spend to Double Down on YouTube Ads

Google is shifting money out of its smart TV ambitions and stacking chips on YouTube. According to a report by The Information, the company cut budgets tied to Google TV and Android TV while nearly doubling the ad sales team behind YouTube.

The decision comes at a time when Google faces slowing growth and rising pressure to boost profits. Inside the company, executives have reportedly ordered cost reductions across hardware and platform teams that don’t deliver immediate returns.

Smart TV projects appear to have taken a hit. Teams are working on Google TV software, which focuses on the interface that powers devices like Chromecast and smart TVs from Sony and TCL. These are, however, now facing budget constraints. Staff say Google has reduced investments in long-term innovation, asking teams to focus on short-term revenue wins.

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Meanwhile, YouTube remains one of Google’s strongest profit engines. Sources told The Information that the company plans to nearly double the number of salespeople dedicated to securing ad deals on the platform. Google wants to capitalize on advertiser interest in YouTube’s TV app, which continues to gain ground among streaming viewers.

This pivot highlights a broader trend inside Google: cut what doesn’t pay fast, feed what does. While Android TV and Google TV once carried major strategic weight, YouTube now pulls the most attention and money.

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