Thursday, July 25, 2013

Search Firm Joins Apple and Microsoft in Race to Bring Web to TV

Google Inc. on Wednesday made another attempt to embed itself into living rooms, after several false starts.

The search giant unveiled a $35 device to wirelessly connect TVs to mobile devices so that people can view and listen to Web content on their biggest screens.

Google joins Apple Inc., Microsoft Corp. and others in the race to bring more Web content to the TV screen, which has remained a big focal point of home entertainment even as tablet computers and smartphones have commanded a greater share of consumers' time.

The new, two-inch Google 
Chromecast device costs $35.
Google's new two-inch TV device, called Chromecast, looks like a thumb drive, plugs into the HDMI port of a TV and can be controlled by a person's mobile device or laptop using a wireless Internet connection.

The device, which is compatible with mobile devices powered by Google's Android software as well as Apple iPhones and iPads, went on sale Wednesday at BestBuy.com, Amazon.com AMZN +0.21% and the Google Play online store.

Chromecast's price tag is lower than that of Apple TV, a $99 device whose "AirPlay" technology is similar to Chromecast's but which also has more features and apps that run directly on it. Microsoft's Xbox 360 videogame console, which starts at $199, also has similar technology, called "SmartGlass," that can be controlled by mobile devices powered by Apple, Android and Microsoft software.

Apple sold 13 million Apple TV units since its launch in 2007, with about half sold in the past year, the company said in May.

Chromecast will allow people to select YouTube video content using their Web-connected tablet, for instance, and have it play on their television. If Google gains a foothold in helping more Web content appear on TV screens, that could be a boon to Google's core advertising business, as no other company sells more online search, graphical and video ads across millions of websites and apps.

The device works with Android smartphones, Chrome-powered laptops and Apple's iPad and iPhone. "We have a multiplatform approach…and we go where the users are," said Google's chief of Chrome and Android, Sundar Pichai. He added that even at the $35 price, Google and its retail partners will make a profit on sales.

Chromecast is the latest example of Google flexing its hardware muscle. Mr. Pichai said the company worked with a hardware maker in Taiwan to build the device, which he said he hopes will be embedded within new TVs and other devices in the future. Earlier this year Google introduced a ChromeOS-based laptop designed and manufactured with an undisclosed Asian partner, and in 2014 it will release its Google Glass wearable-computing device.

Chromecast is further evidence that living rooms are a growing battleground among consumer tech companies. Amazon.com is working on a set-top box for streaming video and Apple too is developing television technology, people familiar with the companies' plans have said.

Google's past TV-related efforts have had some challenges. The company in 2010 released Google TV, which is software embedded in some TVs as well as separate devices that connect to TVs, but it failed to gain much traction. Google's chief of Chrome and Android Sundar Pichai said new Google TV devices, which help people search and watch both cable TV and Web connect, will be released in the future.

Google's Android division also has been working on developing a videogame console, people familiar with the matter have said.

Google on Wednesday also unveiled a new version of its Nexus 7 tablet computer, boasting features like virtual surround sound and a faster processor, as it looks to boost Android's lead over Apple's iPad in terms of market share.

The Nexus tablet is designed in partnership with Asustek Computer Inc. 2357.TW +0.18% and powered by an updated version of Android, which also is the No. 1 software for smartphones.

The Mountain View, Calif., company is working to fend off Apple as well as Amazon.com's Kindle Fire tablets. Mr. Pichai said Android tablets now account for nearly half of all tablet computers sold world-wide, and that more than 70 million Android tablets had been activated to date, up from around 15 million a year ago.

The new tablet, which goes on sale at Best Buy, BBY +0.61% Wal-Mart Inc. WMT -0.40% and other retailers July 30, costs $229 with 16 gigabytes of storage and $269 for 32 gigabytes. That compares with $329 for the 16-gigabyte iPad Mini, an 8-inch tablet, and $429 for the 32-gigabyte version.

The device will soon be available in major markets in Europe and Asia, Google said.

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