Strong holiday season sales of digital video media receivers, including Apple TV and Roku, helped 2011 sales of the Over-the-Top (OTT) Internet video devices approach 13% of US broadband households, matching Parks Associates’ forecasts for the year. Parks expects that more than 14 million digital video media receivers will be sold in 2012, indicative of strong, growing demand for non-traditional video access.
Some 31% of US broadband households regularly watch TV programs or movies via Internet-connected TVs, according to a recently conducted survey included in Parks’ “Value of Video: Shifting Consumer Dollars.”
“In the 2011 holiday season, 4% of households bought one of these inexpensive, single-function devices, which enable households to view over-the-top (OTT) video from Internet-based services such as Amazon Prime Instant Video and Netflix,” said Kurt Scherf, VP, Parks Associate (LINK: http://www.parksassociates.com/index.php) principal analyst. “Nearly 20% of these holiday-season buyers are over 45 years of age, so these devices have achieved relatively broad appeal among multiple consumer segments.”
There were 2.8 million Apple TV units sold in its fiscal 2011 year, Apple reported recently, and another 1.4 are on the books for this past holiday quarter. Sales of Roku’s set-top video media players also were strong last year, with 1.5 million units sold, Scherf noted.
“While this trend does not yet frequently equate to canceling pay-TV services, it can mean shaving some premium channels for a set of households,” Scherf commented. “That is a risk that pay-TV providers must address and a trend that both manufacturers and content providers are following with eagle eyes and plans for defensive actions.”
Strong holiday season sales of digital video media receivers, including Apple TV and Roku, helped 2011 sales of the Over-the-Top (OTT) Internet video devices approach 13% of U.S. broadband households, matching Parks Associates’ forecasts for the year. Parks expects that more than 14 million digital video media receivers will be sold in 2012, indicative of strong, growing demand for non-traditional video access.
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