The number of U.S. broadband households home to a Roku, Apple TV or other streaming media device has doubled since 2011. Fourteen percent of U.S. broadband households now have such a device, according to new research from Parks Associates.
Roku is the most-used streaming video media device in the country, according to Parks’ “Connected TV: Trends and Innovation” report. Thirty-seven percent of an independently surveyed U.S. broadband households primarily use a Roku device as compared to the 24% that primarily use an Apple TV, according to a Parks Associates company blog post.
Some 330 million connected TV devices will be sold in markets worldwide by 2017, Parks’ analysts forecast, nearly twice the number that will be sold in 2013. Average prices will decline along with rising volumes over the period, though average sales revenues will almost double, driven higher by consumers purchasing greater numbers of smart TVs, gaming consoles, Blu-ray players and streaming video media devices for use in the home, Parks says.
“Innovations such as next-gen game consoles and 4K or ultra-HD TVs will boost unit sales for these devices, but overall, consumers are reluctant to replace these big-ticket items solely for smart upgrades,” Parks’ director of research Barbara Kraus was quoted. “As a result, streaming video media devices will have a thriving market because they can offer innovations such as streaming video at low prices. Devices such as Roku’s streaming players and Google’s Chromecast will benefit from these market conditions.”
The rising tide will also create new challenges for manufacturers and service providers, however. Manufacturers and service providers will have a tougher time differentiating their products and services, while average device prices decline as much as half. Innovation will be key to capturing “new and recurring revenue streams in advertising and content placement,” according to Parks.