Annual sales of streaming connected TV devices will more than double by 2017, with the number of connected devices set to reach 330 million a year, new research says.
A new study by Parks Associates says that, in the US, the number of US broadband households with a streaming video media device, such as a Roku or Apple TV, has doubled in two years, to 14% penetration now.
The research, based on 10,000 US households in the first quarter this year, has found that Roku is the most popular streaming TV device. Some 37% of surveyed US broadband households with a streaming device said they use Roku – compared to 24% who opted for Apple TV.
Parks says that average product prices will fall between now and 2017, but annual revenues will rise by almost 100% as more households buy smart TVs, gaming consoles, Blu-ray players and streaming video media devices.
But, Parks warns, because average device prices will fall by as much as half, manufacturers and service providers will need to innovate now to capture new and recurring revenue streams in advertising and content placement.
Parks Associates director of research Barbara Kraus said: “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.
“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 distributes Time Warner Cable’s TWC TV app. Founder and CEO Anthony Wood said Roku customers were “passionate about streaming”.
He added: “We are delighted that independent research shows that we are the most popular streaming platform measured by usage on a US household basis.”