Chromecast, Google’s new thumb-sized streaming device, poses a genuine threat to the UK’s pay TV market, despite only selling around 100,000 devices, according to industry experts.
Speaking at Media Playground on Wednesday, Paul Scanlan, co-founder and president of MobiTV, said that the device, which allows video content from tablets and smartphones to be ‘cast’ to a TV screen, was a “strong threat” to the likes of Sky, Virgin, BT and TalkTalk.
“I think it can do more damage than good to the pay TV operators,” he said. “To the existing incumbents I think Chromecast is a really strong threat.”
Chromecast allows users to watch a range of content from a phone, tablet or laptop on the TV screen – from shows to music to games – whilst using the linked device as a remote control.
Apps, including BBC iPlayer, BT Sport, YouTube and Netflix are all currently available with more to come as developers get to grips with the device.
The move into the UK follows a successful launch of the device in the US last summer, and priced at only £30 it is significantly cheaper than similar devices such as Roku 3 and Apple’s AirPlay.
By 2018, it is thought that some 760 million TV sets will be connected to the internet across 40 countries, with Chromecast and other similar devices predicted to have a considerable impact.
However, Nigel Walley, managing director, Decipher, said that Chromecast only remains a threat unless the pay TV operators can’t exploit what it offers consumers.
“Chromecast, or the functionality it has demonstrated, could be very tricky to pay TV platforms unless they respond very quickly. However, I would expect the pay TV platforms that control their technologies to look at [Chromecast] and say ‘Terrific; let’s build casting capabilities into our new home app.’
“I would expect, pretty quickly, my Sky+ app to have casting abilities soon…If [pay TV operators] can respond then they can exploit Chromecast for their businesses.”
However, Jon Block, ITV’s controller of digital products, was more cautious. “[Casting] is a niche activity at the moment; it’s not mainstream yet. [But] say it does go mainstream in five to six years, by then we’ll be on a new technology cycle anyway [that averages 10 years in the TV market].
Although Block said a genuine user need to cast content from smartphones to the TV poses a disruptive threat, the fact that so many services are not supported by the Chromecast – including 4OD and ITV Player – and that there is no set standard across the industry, it will remain “limited” for the foreseeable future.
To find out more about MediaTel events, visit the dedicated events webpage.
To get all the latest MediaTel Newsline updates follow us on Twitter.
