It is a fact that the use of dedicated streaming devices is correlated with lower uptake of traditional pay-TV services. However, research from The Diffusion Group (TDG) finds that one brand is particularly detrimental to legacy interests: Roku.
In its ninth iteration of Benchmarking the Connected Consumer, TDG found that 35 per cent of Roku users do not subscribe to a legacy pay-TV service, notably greater than the 27 per cent of adult broadband users in general, most of which enjoy streaming TV.
“Given its substantial footprint and brand strength, Roku devices are becoming a favourite of those living without legacy pay-TV,” notes Michael Greeson, TDG President. “The assortment of free and fee-based video apps in the Roku portal is undoubtedly a reason why we observe these correlations. For many TV streamers, buying a Roku, and getting access to the Roku video ecosystem, is no longer just an easy way to supplement their legacy pay-TV service, but a means of replacing it.”
By 2020, TDG forecasts that streaming sticks will near 45 per cent penetration among US broadband households, with iSTBs close behind. “Should Roku remain the dominant brand, and continue to expand its vast OTT content ecosystem,” says Greeson, “legacy pay-TV will suffer.”