Google comes up with new internet-to-TV gadget

Google has made another attempt to find its place in the streaming video gadget market. The device which the tech giant is preparing to launch would cost around $35 and would have capabilities of streaming video to TV as well as adding other services.

Google’s latest innovation in the segment, known as Chromecast, also involves a protocol for using any tablet, smartphone or other device to stream content over a domestic WiFi network to the TV, challenging Apple’s requirement for its customers to use only Apple devices when streaming to a TV.

Netflix, the US movie rental service, has agreed on incorporating the protocol, called Cast, and Google said it was in discussions with others to bring a wider range of internet services to TV sets through its gadget.

Google’s previous attempts to break into the living room have been followed by a failure to persuade more TV networks to allow it to stream their content. A year ago it scrapped an orb-shaped device, called the Nexus Q, almost as soon as it had been launched after potential customers were turned off by the high price and lack of services that could be streamed through it.

Theoretically, even though Google had still not reached any breakthrough agreements with TV networks, Chromecast has a better chance because of its more affordable price-tag and the fact that it could access a wider range of content than the Nexus, Dan Cryan, a digital media analyst at research firm IHS said for Financial Times.

YouTube and Netflix accounted for just under half of all the internet traffic in the US during peak evening viewing hours, Google executives said, proving there was strong demand for video services that could be viewed on a TV set with Chromecast. Users will also be able to stream movies and other content from Google’s online Play store, though analysts said that Apple retained an edge given the greater range of content and services available through iTunes and the App Store.

The price of $35 for the device could be tempting enough for consumers to at least try the services offered by Google and most likely will be a great challenge for $99 Apple TV.

Googles shares declined 0.2% yesterday and have been up more than 27% year to date.