Info Image

Roku vs Apple vs Amazon: The Rise of Media Players in the US Market

Roku vs Apple vs Amazon: The Rise of Media Players in the US Market Source: Parks Associates

Traditional TV broadcasting has embarked on its exit journey and the US is leading other regions in transforming our TV experience with more and more US households with broadband connections using streaming media players to access unlimited content online. A boon to those who enjoy having access to the widest variety of information and entertainment content, web content is replacing the traditional satellite channels and other ancient sources of television content. The flat LCD and LED screens that have replaced the old bulky TV sets are becoming intelligent display terminals that read from a wide range of sources via these streaming media players, enabling a plug-and-play concept that bypasses the rigid subscription packages, long term contracts and limited content choices that come with traditional satellite and terrestrial channels. New players such are as Netflix, Vudu and Amazon Prime are delivering content to today's TVs via simple and flexible online packages.

According to Park Associates, a market research and consulting company, its 'The Evolving Market For Streaming Media Devices' report showed that more than a quarter of US households are expected to have a streaming media player by 2015, and cites that newer players are making entry to the market with expanded product offerings, for example, the Amazon Fire TV by Amazon. The report highlighted that at present, Roku accounts for 44% of media players in households with a streaming media player while Apple's share is only 26%. Roku's and Apple's share of the segment increased from 2013, where they took a share of 37% and 24% respectively.  In terms of sales, Roku made up 46% of streaming media players purchases in 2013 while Apple took a 26% share.

Park Associates also estimates that global sales for streaming media players will reach nearly 50 million by 2017 while broadband household penetration in the U.S. will exceed 38%. Park foresees that players in this segment will compete in terms of content they can bring to users and with Apple releasing a new version of Apple TV, the competition will become more intense.

Multiple factors have allowed Roku to outpace Apple in U.S. sales and usage. Roku has always had a close association with Netflix, the largest source of video downloads, and currently offers more than 1,700 channel apps as well as a choice of models with different features and price points, all of which appeal to consumers' purchasing instincts. With Amazon entering this CE category, there will be renewed pressure on all players to develop the best combination of 'can’t miss' content with a simple and intuitive interface. While approximately 50% of U.S. households have at least one Apple product, such as an iPhone or iPad, the company has not yet been able to leverage this success for its Apple TV offering. Apple has not committed support and promotion to its Apple TV product line in the U.S., and its sales reflect this fact. But they are the global sales leader in this category, having sold approximately 20 million units worldwide as of April 2014, compared to an estimated eight million for Roku at the end of 2013. As Amazon, the world's largest online retailer, emerges as a new competitor in this space, it could awaken the sleeping giant that is Apple."

-  Barbara Kraus, Director, Research, Parks Associates

NEXT POST

Nokia Unveils First Virtual Reality Camera