Apple TV to take 32% of "Connected TV Player" market this year

Posted:
in iPod + iTunes + AppleTV edited January 2014
While consistently branded as being a "hobby" for Apple, sales of its $99 Apple TV set top box had made it the most popular device in the category, predicted to sell nearly 4 million of the the nearly 12 million TV boxes in the market.



A report by Strategy Analytics, Apple is the leading set top TV box vendor, ahead of dedicated TV box systems from Boxee, Iomega and Roku, TV box products by hard drive vendors Western Digital and Seagate, and Android-based Google TV licensees Sony and Logitech.



?Apple is leading this nascent market, which it still considers a ?hobby?.? says Jia Wu, Strategy Analytics' Senior Analyst of the Connected Home Devices (CHD) service.



The marketing firm noted that only 8 percent of US households currently own a "connected TV" player, but of that population, 32 percent have chosen Apple's model. Additionally, among connected TV users, more Apple users were actually paying for TV and movies. The firm found that 30 percent of Apple TV owners paid to rent movies or TV shows, compared to just 20 percent of users of other devices.







?As Apple prepares for its expected launch of smart TVs in 2012, rival platforms must accelerate their development plans to keep Apple from running away with the connected TV business, as it has done in smartphones and digital music,? the analyst stated, reiterating speculation that Apple is poised to enter the HDTV market, rather than continuing to build a low cost, small external iOS device that can work with any TV set.



At the same time, the firm acknowledged that Apple, along with Roku, has found success in the difficult market by offering a TV device at a much lower price point that has "made them more affordable and compelling to consumers."



Apple slashed the price of Apple TV from the original $229 entry level device of the first generation unit to just $99 by focusing on streaming content from cloud services (including iTunes own and Netflix) and from users' own PC content libraries, rather than hard drive playback of locally stored content on the device itself.



Is AirPlay a killer app?



Apple has also differentiated Apple TV by introducing AirPlay as a feature from both iTunes equipped Macs and PCs, as well as mobile iOS devices such as the iPhone, iPod touch and iPad. Without AirPlay, other smartphones and tablets require a much less convenient external HDMI cable connection, if they support external video at all.



Many popular Android smartphones lack any support for video output, and low cost tablets such as the Amazon Kindle Fire and Barnes & Noble Nook Color similarly lack the capability for wired or wireless video output to an HDTV. Standard Android devices can stream to Apple TV using third party apps, such as doubleTwist and its AirSync feature.



In addition to dedicated TV box devices, Apple TV also competes against game consoles with cloud services and media stores, including Microsoft's very popular Xbox 360 and Sony's rival PlayStation 3. Those devices weren't profiled in the report as "connected TV" devices, despite their large installed base of users. While Apple TV and its AirPlay mirroring capabilities with iPad 2 and iPhone 4S have revealed new potential for iOS games that take over the living room, Apple hasn't pushed the device as a gaming system in the same way that it has the portable iPod touch.



Apple's TV box, introduced alongside the original iPhone back in 2007, was also challenged by the Android-powered Google TV initiative launched in the summer of 2010. However, Google TV has failed miserably over the past year and a half.
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Comments

  • Reply 1 of 117
    MacProMacPro Posts: 18,352member
    I need another one but can't decide if I should wait for v.3.
  • Reply 2 of 117
    I wasn't sure about the usefulness AppleTV at first, but with the extra Airplay features on my iPad2 in iOS 5 I took the plunge and bought one a few months ago.



    While I use it a lot for airplay and youtube / vimeo on a big screen, it's gained far more use since I jailbroke it (seas0npass) and installed xbmc on it...



    Now it does all the fun things apple supplied with it but it will also stream all my divx ripped dvds off my NAS over UPNP too... I used to have to use my PS3 for streaming but the apple tv is far easier, uses less power and doesn't have a dirty great fan in it making a racket while it's on.
  • Reply 3 of 117
    I don't know why anyone would buy AppleTV when Xbox 360 and PS3 do so much more. And let's face it, the way to get content on to AppleTV is also less than ideal - where is the USB slot or the Blu Ray drive?
  • Reply 4 of 117
    2oh12oh1 Posts: 501member
    The main thing Apple TV is missing is apps. No, I'm not talking about facebook or angry birds. I'm talking about apps that serve up video content. Obviously, Hulu comes to mind, but once the app floodgates are open, some pretty marvelous things could follow. Instead of paying $60 a month for 500 channels that I don't watch on cable just so I can have three or four that I DO watch, I'd rather pay a few bucks a month for a Comedy Central app so I could watch the Daily Show and Colbert. Or how about $10 a month for an NFL app that serves up live games? I realize those kinds of options are a few years away, but Apple could really get the ball rolling by opening up an Apple TV app store.
  • Reply 5 of 117
    Quote:
    Originally Posted by neiltc13 View Post


    I don't know why anyone would buy AppleTV when Xbox 360 and PS3 do so much more. And let's face it, the way to get content on to AppleTV is also less than ideal - where is the USB slot or the Blu Ray drive?



    I have no interest in gaming or the monthly service fee Microsoft requires for the similar services. Plus, last time I checked the xBox and PS3 units aren't really good at Airplay functions or integrating with my Apple ecosystem. Add to that the cost of the xBox or PS3 systems and I'm more than happy with my AppleTV, its simplicity, and the UI.
  • Reply 6 of 117
    Quote:
    Originally Posted by 2oh1 View Post


    The main thing Apple TV is missing is apps.



    I couldn't agree more.... I'd love to see the iPlayer and 4OD (etc) apps on Apple TV and it seems the ideal place for them to be.
  • Reply 7 of 117
    Looks like $99 buys a lot of whining.
  • Reply 8 of 117
    jungmarkjungmark Posts: 6,709member
    Quote:
    Originally Posted by neiltc13 View Post


    I don't know why anyone would buy AppleTV when Xbox 360 and PS3 do so much more. And let's face it, the way to get content on to AppleTV is also less than ideal - where is the USB slot or the Blu Ray drive?



    Well the apple tv is $99. In addition, many people aren't "hard core" gamers to justify getting a game console. You can't play bluray on the 360 either.
  • Reply 9 of 117
    Me want hobby like this!
  • Reply 10 of 117
    Quote:
    Originally Posted by neiltc13 View Post


    I don't know why anyone would buy AppleTV when Xbox 360 and PS3 do so much more. And let's face it, the way to get content on to AppleTV is also less than ideal - where is the USB slot or the Blu Ray drive?



    Don't you know better that to bring up Blu Ray to this crowd? Steve (rip) said no to blu ray a while back so that makes it the enemy.



    Like flash on iOS.

    Like matte screens.

    Like USB 3.0 and camera card slots.

    Like intel chips. Well, the fan base kinda caved on that one.



    According to Apple you don't need physical media. "but what about home movies.". You ask? How do you share them with you're family in hi def quality? Simple. Use the MobileMe web gallery. But you had better hurry. You only have a few months left before they kill that too.
  • Reply 11 of 117
    s4mb4s4mb4 Posts: 267member
    Quote:
    Originally Posted by DaveMcM76 View Post


    I couldn't agree more.... I'd love to see the iPlayer and 4OD (etc) apps on Apple TV and it seems the ideal place for them to be.



    Air Video would make it the greatest device for serving content ever invented.

    I can use Air Video to stream movies from my iDevice, but would be great if i could eliminate the need for the the iDevice.....
  • Reply 12 of 117
    Quote:
    Originally Posted by neiltc13 View Post


    I don't know why anyone would buy AppleTV when Xbox 360 and PS3 do so much more. And let's face it, the way to get content on to AppleTV is also less than ideal - where is the USB slot or the Blu Ray drive?



    For Airplay!
  • Reply 13 of 117
    nhtnht Posts: 4,494member
    Looking at the Roku XS instead for the Amazon video.



    The thing is a Wi-Fi BR player isn't much more money than a aTV or Roku. Call it $50 more.



    That's not a lot of money and you can play BR.
  • Reply 14 of 117
    sdw2001sdw2001 Posts: 17,044member
    Quote:
    Originally Posted by neiltc13 View Post


    I don't know why anyone would buy AppleTV when Xbox 360 and PS3 do so much more. And let's face it, the way to get content on to AppleTV is also less than ideal - where is the USB slot or the Blu Ray drive?



    It's not a PS3 or an xbox. It's a totally different product at a different price point. The AppleTV is not an essential product to say the least, but it's a very cool, useful one. I got my first one in October and I really like it. It's the best interface for netflix (much better than my PS3) and is great for streaming from the cloud, phone or Mac. For $99, it's more than worth it.
  • Reply 15 of 117
    irnchrizirnchriz Posts: 1,590member
    Quote:
    Originally Posted by neiltc13 View Post


    I don't know why anyone would buy AppleTV when Xbox 360 and PS3 do so much more. And let's face it, the way to get content on to AppleTV is also less than ideal - where is the USB slot or the Blu Ray drive?



    1. The noise, both Xbox 360 and PS3 are noisy.

    2. Power consumption. 360 and PS3 are energy whores.

    3. The Size, ATV is tiny.

    4. One format to rule them all. Encode all vides into Apple format so they play on all your Apple devices.

    5. Airplay



    I have 3 x xbox 360's and 1 PS3 in my home. If they were used for video playback I would have a monty power bill.
  • Reply 16 of 117
    I think folks sometimes confuse what Apple TV could be versus what it really is.



    If you're firmly within the iTunes and Apple ecosystem, the Apple TV is a very good product. However, for people who are looking to ditch cable or use a lot of non-Apple services such as Hulu Plus, Amazon on Demand, Pandora or Spotify, the device leaves a bit to be desired.



    A lot of the same functionality can be found through the PS3, Xbox 360 or some of the more advanced Blu-ray players out there.



    I really like the Apple TV for what it does. I've got iTunes Match running and have an old Mac Mini serving up TV and movies to the two Apple TVs in the house. I get Pandora through my Blu-ray player, but Apple's user interface is way better than the Sony. That being said, I certainly wouldn't mind some of the suggestions of other forum posters in a software update or version 3.



    My wish would be to add some other services like Hulu, Spotify, or Pandora, though they each compete with Apple to some degree so I don't really hold out much hope. I also like the idea of subscribing to networks through Apple TV -- ESPN and Comedy Central would top my wish list and let me cut the cable cord.



    I don't care that much about other apps for the Apple TV. Though many may disagree, I don't really need it to become a gaming device.
  • Reply 17 of 117
    Apple hasn't even introduced a proper TV yet but already takes 32% from this segment other electronics manufacturers are aiming for.



    If they cannot do well against Apple's hobby, what are their chances agains a proper Apple product if later introduced?



  • Reply 18 of 117
    So an unannounced, unreleased product that few outside of Apple know what it will do, is going to take 32% of the connected TV market. That's a bit of a wild guess.



    Of course, if they said 30%, then that would seem like more of a guess, so better make it 32%, so it looks like there was some reasoning behind it other than it being the total stab in the dark that it is.
  • Reply 19 of 117
    addaboxaddabox Posts: 12,660member
    Quote:
    Originally Posted by neiltc13 View Post


    I don't know why anyone would buy AppleTV when Xbox 360 and PS3 do so much more. And let's face it, the way to get content on to AppleTV is also less than ideal - where is the USB slot or the Blu Ray drive?



    Well, in that you've literally never had a good word to say about any of Apple's products while professing your enthusiasm for any and all competitor's products, I am somehow not very surprised.
  • Reply 20 of 117
    I believe it. We love out ATV2.
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