Google Inc (NASDAQ:GOOG) put an end to free three months Netflix, Inc. (NASDAQ:NFLX) content deal on its Chromecast device after just one day of launch as the device has become very popular, exceeding expectations. In order to promote its Web-to-TV Chromecast, Google was offering three months of Netflix for free.
Google Chromecast a hit just after the launch
Google Inc (NASDAQ:GOOG) told the Los Angeles Times, “Due to overwhelming demand for Chromecast devices since launch, the three-month Netflix promotion (which was available in limited quantities) is no longer available.”
Chromecast is priced at $35 and three months Netflix, Inc. (NASDAQ:NFLX) service that generally costs $23.97 was made available to both new and current subscribers, which was quite an alluring offering.
Chromecast saw massive demand within an hour after it was launched; it was backordered by a week. Users were ready to pay as much as $100 for Chromecast on eBay Inc (NASDAQ:EBAY) a day after Google unveiled the device. However, offering something like that and then withdrawing it so quick can prove to be a bad strategy.
Google’s Chromecast allows a user to send video and audio content from their smartphones, tablets, and laptops to TVs. Both T.V. and the source devices are connected through an HDMI and take content from the cloud by connecting to Wi-Fi.
Netflix, Inc. (NASDAQ:NFLX) can be given a significant credit for the rapid sales of Chromecast. Online retailers, Amazon.com, Inc. (NASDAQ:AMZN) and BestBuy.com, ran out of devices by Thursday morning (available on BestBuy again). The device is also available on Google play online store, but shipping wait time is three to four weeks.
Competition to Apple TV
Google Inc (NASDAQ:GOOG) is trying the low cost trick, which it did not offer in its previous two attempts—Nexus Q, which was a costly offering, and Google TV software, which had complexities, slow response time and was limited to only Google service.
This time Google is trying the Amazon way, which jeeps Kindle price slightly above the cost incurred, or sometimes even less than the cost.
Chromecast can give tough competition to Apple Inc. (NASDAQ:AAPL) TV which is priced at $99. All Best Buy Co., Inc. (NYSE:BBY) stores will have Chromecast devices by this Sunday.
The TV streaming device market is surely flooded, but Chromecast is here to make a mark with its lower price tag of $35, which is less than Apple TV $99 and Roku priced at $50. Chromecast is adaptable to almost all devices.
Google Inc (NASDAQ:GOOG) said that those users who purchased Google’s device with the Netflix, Inc. (NASDAQ:NFLX) offer will be able to access it even after promotions have stopped.