Internet search giant
) recently launched a black plastic dongle called Chromecast that
can be hooked up to the HDMI port in televisions to access
content from the Internet in real time via Wi-Fi. Google is
selling the device at $35. Being the cheapest device bringing
Internet to the TV, Chromecast could easily become an impulse
Chromecast works with mobile devices based on Google's Android
OS and those powered by
) iOS. While additions like Pandora music will be available soon,
the device currently streams any content visible through Google's
Chrome browser, including YouTube videos, content bought on
Google's Play Store, as well as TV shows and movies streamed by
In fact, Google is offering a 3-month free trial of Netflix's
video streaming services with it, which makes it particularly
attractive given Netflix's Emmy Award nominations. The device
will be available at Bestbuy.com, Amazon.com and Google Play
The device will make video streaming to the TV mainstream
(most of the streaming is currently done on PCs, tablets and
smartphones. Through Chromecast Google is trying to make its way
into people's living rooms. Technology companies have been eyeing
the digital home entertainment space for some time now, not only
because of the good growth prospects but also because of several
new technologies including the cloud.
However, competition will be fierce, with most of the large
technology companies foraying into similar Internet-based video
programming businesses. Google will compete with Apple Inc.,
which already sells its own set-top box called Apple TV, Roku and
other content streaming devices, including game consoles like
Xbox and Playstation.
) has also entered this space with its own set-top box. Chip
) is also eyeing this space and expects to launch its own
Internet-based TV service and an accompanying set-top box.
Whether Google can edge past other tech giants in the attractive
home entertainment market remains a wait-and-see story.
In the second quarter of fiscal 2013, Google reported solid
earnings of $7.81 per share that missed the Zacks Consensus
Estimate by $1.23 or 13.7%. Google's gross revenue (including
total traffic acquisition costs [TAC]) came in at $14.10 billion,
representing sequential and year-over-year growth of 1.0% and
19.5%, respectively. Google's standalone revenues grew 1.2%
sequentially and 19.5% year over year but Motorola's growth rates
continued to lag.
Google has a Zacks Rank #5 (Strong Sell).
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