According to a report in the WSJ, it has already approached media companies about licensing their content for such a service.
Furthermore, it has in at least one instance provided a demonstration of the product it would offer.
Google previously held such talks around two years ago. Although they came to nothing, the market has since changed considerably, with several other companies, including Intel and Sony, working on similar plans and pay-TV providers asking entertainment companies for nationwide streaming rights.
Google has also already made significant progress in developing TV and online video in the last few years.
Besides financing original programming for YouTube, this has included launching a cable service on its Google Fiber Network and developing Google TV software for cable STBs.
Should Google launch an OTT service, it would compete directly with pay-TV platforms already facing pressure from the likes of Netlix, Hulu and Amazon, though the latter offer on demand rather than traditional TV content.