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Thread: Apple TV Manages To Attract a Third of the Connected Home Device Market in 2011

  1. #1
    MMi Staff Writer Akshay Masand's Avatar
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    Default Apple TV Manages To Attract a Third of the Connected Home Device Market in 2011


    As the Apple TV continues to be branded as being a “hobby” for Apple, sales of its $99 set top box have recently made it the most popular device in its category. As of right now, predictions are claiming that the device is set to sell nearly 4 million units of the nearly 12 million TV boxes in the market.

    A report created by Strategy Analytics states that Apple is currently the leading set top box vendor, ahead of the dedicated TV box systems from Boxee, Iomega, Roku. Western Digital, Seagate, and Android-based Google TV licensees Logitech and Sony. “Apple is leading the nascent market, which it still considers a ‘hobby’,” says Senior Analyst of the Connected Home Devices (CHD) Jia Wu of Strategy Analytics.

    It was noted that only 8% of the U.S. households currently own a “connected TV” player, but of that population, 32% have chosen Apple’s model. Additionally, among connected TV users, more Apple users end up actually paying for movies and TV shows. The firm found that 30% of Apple TV owners have paid to rent movies or TV shows, compared to just 20% 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. This is all during the speculation that Apple is set to enter the HDTV market, rather than continuing to build a low cost, small external iOS device that can work with any TV set.

    The firm did acknowledge that Apple along with Roku has found success due to offering a TV device at a much lower price point than many other competitors. The company has managed to be “more affordable and compelling to consumers.” Apple slashed the prices of the Apple TV, which started out at $229 as an entry level device of the first generation unit to just $99 by focusing on streaming content from cloud services (such as iTunes and Netflix) from users’ own PC content libraries, rather than hard drive playback of locally stored content on the device itself.

    Speculation is pointing towards AirPlay as one of the key killer features offered by the Apple TV. AirPlay allows users to skip the much less convenient external HDMI cable connection to their HDTVs. Many other popular devices lack support for video output but Apple’s A5 based iOS devices such as the iPad 2 and iPhone 4S can easily stream content to the HDTV. That isn’t all either, standard devices can stream to Apple TV using third party apps such as doubleTwist while utilizing its AirSync feature as well.

    Ironically, despite the Apple TV being one of the most popular set top boxes in the market, there are many people who don’t quite know what it is or what it does. Are you one of those people? Are you one of the people who own a set top box? If so, is it an Apple TV?

    Source: Strategy Analytics
    Last edited by Akshay Masand; 12-13-2011 at 03:56 AM.

    Twitter: @AkshayMasand

  2. #2
    Just apply tv at the end of November and it is better at what it does than my ps3! Down falls is storage it would nice if a add on hard drive was an option! Plus would be a nice to have bbciplayer and other services added but it's AirPlay allows u to stream from ur Idevice but not great when the phone is out of order!

  3. #3
    This is the best device yet .. I love xbmc i dropped my Hulu and Netflix ... Streaming all my home media from my pc without iTunes flawless !! Thanks devs!!!

  4. #4
    Quote Originally Posted by scroogelives View Post
    Just apply tv at the end of November and it is better at what it does than my ps3! Down falls is storage it would nice if a add on hard drive was an option! Plus would be a nice to have bbciplayer and other services added but it's AirPlay allows u to stream from ur Idevice but not great when the phone is out of order!
    Sure, if all you do is stream Netflix or Hulu or whatever service. What about streaming movies from my computer, in full 1080p? I have a ton of MKV videos and my PS3 streams them all beautifully along with the paid services.

  5. #5
    Quote Originally Posted by GmAz View Post
    Sure, if all you do is stream Netflix or Hulu or whatever service. What about streaming movies from my computer, in full 1080p? I have a ton of MKV videos and my PS3 streams them all beautifully along with the paid services.
    A jailbroken ATV with xbmc will let you stream whatever codec but will be chopped down to 720 because of ATVs hardware. But it's great with icefilms

  6. #6
    This research means very little. Look at the list. They are not even comparing to other true "connected tv" players like HTPCs, Xbox, PS3. Not to mention internet connect TVs themselves. I think this report is just an Apple PR stunt.

    2.1 Apple TV
    2.2 Roku
    2.3 Western Digital
    2.4 Seagate
    2.5 Boxee
    2.6 Sony
    2.7 Logitech
    2.8 Iomega

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