Roku is strengthening its lead in the streaming media player space. The company increased its market share by 7 percent compared to the first quarter 2016, with 37 percent of American households now owning a Roku device, according to new consumer research from Parks Associates.
This puts Roku further ahead of its primary competitors, Amazon, Apple, and Google, the report indicates.
“Roku emerged early as a U.S. market leader for streaming media players, and the company has held firmly to that position,” Parks Associates Senior Analyst Glen Hower comments. “Higher-priced devices, such as the Apple TV, have not been able to keep up with low-priced and readily available Roku devices, which can be found at Walmart for as low as $29.99.”
As for the other players, Amazon’s Fire TV increased its market share from 16 percent to 24 percent to take second place, overtaking Google’s Chromecast, which holds an 18 percent share. Apple trailed behind with a 15 percent share.
These standings are similar to those reported in eMarketer’s 2017 forecast, which predicted Roku would lead the connected TV pack this year, increasing its users to 38.9 million, up 19.3 percent compared to 2016.
That report projected Chromecast would be in second with 36.9 million users, capturing 22 percent of connected TV users, compared to Roku’s 23.1 percent. Amazon Fire TV was expected to be in third with 21.3 percent of connected TV users, with Apple TV once again in last, with 21.3 million users, or a 12.7 percent share.
eMarketer analysts attributed Roku’s dominance, in part, to its neutrality in the space. The company can form partnerships more easily because it doesn’t promote specific content or platforms, the firm said.
“As the only major market participant not affiliated with a content or TV device platform, Roku has used its neutrality to strike deals with a wide range of partners, including smart TV makers, over-the-top (OTT) service providers, and social media companies,” Paul Verna, principal video analyst at eMarketer, notes.
“That expansive strategy, combined with the company’s broad selection of connectivity devices at various price points, has put Roku at the head of the pack,” he adds.
Apple TV’s high price point, starting at $150, gives it a disadvantage as Google, Amazon, and Roku all offer streaming docks starting at well below $40.
You can find Parks Associates’ full report, Reinventing CE: Transforming Devices to Service Platforms, here.
