Apple Owns 56% Of The Streaming Devices Market, Roku Second With 21%

Screen Shot 2013-07-14 at 7.03.17 PM

We’ve just released our latest Frost & Sullivan report on the size of the Consumer Video Devices Market, which details the market drivers, restraints to market growth, product and pricing trends, competitive landscape, and market forecasts and trend analysis broken out by region of the world for the next five years. Our report details sales numbers showing that Apple owned 56% of the streaming devices market in 2012, with Roku coming in second at 21% of the market.

Apple accounts for the majority of sales by far, despite offering relatively narrow content access – this is not (yet) a market being driven by the value proposition of a streaming TV experience. AppleTV’s AirPlay feature was strategically crafted to simplify the process of transferring laptop and tablet displays to a TV screen, and it is AirPlaying – not OTT streaming – that is the primary reason for purchase of AppleTV devices. Roku is the second largest vendor in this space and is driving growth through a strong lineup of content as well as through a series of agreements with Pay TV vendors such as Time Warner Cable. The long-term potential for this segment does remain uncertain. It is important to note that while current growth rates are high, the total installed base of $99 streaming boxes is quite low.

These devices today are predominantly sold in retail stores to users who seek a convenient, compact device to find and display OTT video (subscription or free) to their television screen. Up until 2012 the market has struggled to find mainstream momentum; even today, we believe only two vendors (Apple and Roku) have crossed the 1M unit mark in annual shipments. Aside from Apple and Roku, TiVo offers the next strongest installed base of users, making them a strategic option for Pay TV service providers looking to establish an IP streaming device partnership.

Google is conspicuous by its absence in this segment. Devices based on the Google TV platform have seen very little commercial success so far, with our estimates of less than 1M total installed devices, of which the discontinued Logitech Revue accounts for the lion’s share. Google remains committed to competing in this space, however, and a bunch of new devices with Google TV have launched in recent months, joining Vizio’s C0-Star device, including the Hisense Pulse, Asus Qube and NeoTV Prime.

The report breaks out market share and sales numbers for tablets, phones, smart TVs, set-top-boxes, game consoles and IP streaming devices, based on region of the world, with projections for the next few years. Copies of the report are available to any customer who has a subscription to Frost’s Digital Media research service and anyone interested in getting a subscription can contact me for more details. Game console data can be found here “More Than 35M Video Game Consoles Expected To Be Sold in 2013, 60% Used For OTT Video“.

Also, while many research analysts at other firms won’t talk to someone unless they are a customer of that firm, I have and always will talk to any company who is interested in getting more details on any aspect of our reports, so email me or call anytime. (917-523-4562)

  • Tanner Boyle

    This does not include Xbox or PlayStation?

  • per Tanner’s comment I’m curious why Xbox wasn’t including in this breakdown? in the small (non-scientific) survey of friends this evening the Roku was pretty prevalent (cheap) but not much used, Xbox a firm second, PlayStation third but a long way behind and 1 in 10 AppleTV (despite the community almost totally having at least iOS mobile devices in every house

  • Kelthoff

    Just plug my android phone into tv via hdmi and I’m good no need to buy another device.

    • woodie

      One word: Airlpay. Android doesn’t have it.

      • Todd A

        Four letters: DLNA. And unlike Airplay, it’s a standard…

      • Willem Verbrugh

        try google on miracast or Allshare cast… it’s open on Android and even Windows 8…

  • Mark E. Strauss

    Make no mistake, we are at war. The first shots have been fired and the ground to be taken is the boob tube!

  • George McKinney

    Frost & Sullivan rules… Oh yeah, DLNA rocks, too!

  • FabbJabb

    Must be nice to be Apple, thats all I can say. Wow.

    • Tess

      In practice, both the Apple TV and Roku boxes are a sideline to game consoles though. Personally, I keep a Roku in the bedroom and have an XBox 360 in the living room.

  • handful

    Funny how dismissive this can be. Last reports still putting netflix on top of streaming services / streaming of video overall with more than 80% of the whole cake.

    End of last year, Netflix says PS3 is by far the top device (even surpassing the PC which is amazing, but we know how Sony pushes it )

    So, it’s clear that this numbers don’t represent the overall streaming, but rather simple streaming boxes ( no game consoles, no tablets, no pcs )

    Could you please show the % of this devices compared to the overall streaming before. Or something that proves that my assumptions are all wrong, and the market made an unbelievable turn in the last 12 months, giving such good numbers to Apple – in a rather interesting moment to do so – Then the article will make more sense.

    • danrayburn

      “numbers don’t represent the overall streaming, but rather simple streaming boxes ( no game consoles, no tablets, no pcs )”

      Correct, as I say in the post,”The report breaks out market share and sales numbers for tablets, phones, smart TVs, set-top-boxes, game consoles and IP streaming devices”.

      So these numbers are are just for dedicated streaming boxes.

      As to your question of what percent of the total device market these boxes make up, it’s less than 1%, if you include phones, tablets,TVs, STBs, etc. game consoles make up about 3%.

  • kevolution

    56% of zero = ….

  • Willem Verbrugh

    some very narrow definition of streaming devices….. forgetting the fact that PC’s and Android devices can perform the same role… and infact do in a lot of households.