Google's $35 Chromecast dongle that brings Internet video to TV sets is the latest salvo on what could be a major attack on the cable, satellite and broadcast TV. Here's my review.
Practically giving away the device (it's only $35 and comes with $24 worth of Netflix, even for current Netflix customers) could turn out to be a brilliant move for Google if it results in a massive uptake in customer's turning to the search giant as their source for TV entertainment. If you add in Google's existing Android phone franchise as the largest smartphone operating vendor and its growth in tablet market share (the company announced it's activated 70 million Android tablets), then what you're looking at is a giant media distribution company that reaches, literally into both your pocket and your home.
This opportunity isn't lost on Amazon and Apple which are battling Google as online in the online video distribution wars. Although Apple's existing Apple TV set-top has not sold in huge numbers, its mere existence indicates the company's long-term strategy that may someday also include and Apple designed TV set. Amazon has its own delivery hardware in the form of its Kindle Fire tablets and - because of its ability to move physical merchandize, is well positioned when and if it ships its own set-top box, which is expected this fall, according to Bloomberg Business Week. Amazon's Instant video service is already available on the iPad and iPhone and streamed to TVs with Roku, the three major game consoles and on smart TVs from Sony, LG, Vizio, Panasonic and others as well as some connected BluRay players,
But by coming out early at an extremely affordable price, Google may wind up dominating the TV delivery industry. It's hard to imagine that Hulu, Major League Baseball, HBO Go and every other content provider isn't beating a path to their door. I imagine that the TV networks, too, are anxious to get their content on the device. Unlike cable, broadcast and satellite which can accommodate personal video records, Streaming lets allows them to force viewers to sit through commercials for their free content and provides another revenue potential for pay per view or subscription services. I suspect that Google will also do deals with the major networks and with Hulu (owned by Disney, Fox and NBC Universal) but, the device allows them to bypass the networks and do deals directly with content providers and to fund their own content as Netflix is doing with its successful House of Cards, Orange is the New Black and other series.
Disclosure: Larry Magid is technology analyst for CBS News Radio, who's parent company, CBS has a stake in this game.
news by July 25, 2013 at 08:39PM
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