Parks Associates: One Quarter of U.S. Homes Will Have STB By 2015
Set-top boxes aren't for early adopters, anymore. In its latest look at the streaming video industry, market research company Parks Associates said that 25 percent of U.S. homes with broadband connectivity will have a streaming media player by 2015. In 2017, the global market for streaming devices will rise to 50 million units.
The low-cost of set-top boxes (STB) will make them a popular gift this year, says Parks Associates' director of research Barbara Kraus.
Roku is still the leader in the STB category with 29 percent of sales, followed by Google Chromecast (20 percent), Apple TV (17 percent), and Amazon Fire TV (10 percent). Chromecast recently took the number two spot from Apple.
Parks Associates also looked at how Americans are getting their video. Almost half of U.S. TV viewing is now non-linear. That's up from 38 percent in 2010. Younger adults (18- to 44-years-old) watch mostly non-linear TV.
"The market is changing rapidly to account for these new digital media habits," Kraus notes. "Roku now offers a streaming stick, and Amazon’s Fire TV streaming stick leaves Apple as the only top player without a stick product in the streaming media device category."
The full 2014 Holiday Purchase Intentions report by Parks Associates sells for $5,000.
Connected TV ownership is strong, but consumers prefer the experience set-top boxes provide when streaming movies and TV shows.
Young adults show a greater-than-average preference for streaming video services, and are less likely to have pay subscriptions than older adults.
58 percent of homes have used at least one OTT service in the past 30 days, says Parks Associates, and over 25 percent have used multiple.
While OTT alternatives provide strong competition, the number of people upgrading and downgrading pay TV packages is nearly equal.
U.S. viewers are testing the waters, sampling streaming video services quickly then moving on to try something else.
Young adults especially are likely to use a streaming video service paid for by someone living outside of their household.
Consumers aren't showing much interest in TV Everywhere, but OTT video services are booming and will continue to do so.
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