Newly-released streaming media and connected TV research from Parks Associates indicates that the number of US broadband households with a streaming video media device, such as a Roku or an Apple TV, has doubled since 2011, reaching 14 per cent in 2013.
In the report – Connected TV: Trends and Innovation – the firm notes Roku is the most-used streaming video media device in the US market. In a 1Q 2013 independent survey of 10,000 U.S. broadband households, Parks Associates found, among households with a streaming video media device, 37 per cent primarily use a Roku compared to 24 per cent that primarily use an Apple TV.
Parks Associates analysts predict the number of connected TV devices sold worldwide will reach 330 million annually by 2017, almost double the number to be sold in 2013. Average product prices will decline over this time, but annual sales revenues will increase almost 100 per cent by 2017 as more households buy smart TVs, gaming consoles, Blu-ray players, and streaming video media devices.
“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,” said Barbara Kraus, director, research, Parks Associates. “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.”
“Roku customers are passionate about streaming, and we are delighted that independent research shows that we are the most popular streaming platform measured by usage on a US household basis,” said Anthony Wood, Founder and CEO, Roku.
Parks Associates analysts report this success creates new challenges in differentiation for manufacturers and service providers. Connected TV: Trends and Innovation reports average device prices will decline by as much as half, so it will be critical for manufacturers and service providers to innovate today in order to capture new and recurring revenue streams in advertising and content placement.