Google is reportedly set to launch a new product dubbed Google TV that will be an actual hardware box that would connect to televisions and would be powered by Google’s Android operating system.

Google reportedly has sealed partnerships with content providers such as Sony to license content on the new product.

Google TV would allow consumers to access the Internet, including e-mail, browsing (with Google Chrome), chat, stream media, run web apps (including social networking apps), among other features, directly to their television sets with home theater connectivity.

According to a Times report, Google TV would be powered by Intel Atom processors, and the technology will be integrated directly into Sony televisions and blu-ray players.

Apple already offers its own Apple TV product, allowing consumers to purchase television shows and other content from iTunes.

The market slowly seems to be trending towards accessing the Internet through hubs that are connected to television sets.

Firms that do not have their own product suddenly become negatively positioned against competitors who do offer these systems.

For example, Blockbuster in recent years has struggled financially as more and more people shifted to new and more convenient channels to get movies, such as with online streaming. Today, consumers could stream movies for little cost even directly through their existing gaming console like via Microsoft’s Xbox 360 without ever leaving their homes.

It is obvious companies that do not have their own systems, even if they are not differentiated by much, will find themselves in a very disadvantageous strategic position in the marketplace assuming the trend continues. For that reason, it is not surprising to see Google launching its own “TV entertainment hub”, if you will.