On the morning of July 27, according to the latest figures from eMarketer, 168 million people worldwide are expected to use connected TV this year, representing a roughly 10% increase compared to last year. However, many consumers seem to prefer brands like Roku, Amazon, or Google over Apple when choosing a streaming device.
Attached below is an image showcasing various smart TVs and streaming devices available in the market today.
Apple TV, which has undergone four generations of updates since its debut in 2006, continues to face stiff competition. The shift towards internet-based TV viewing is reshaping traditional cable TV habits, creating a tug-of-war between tech giants and established cable networks. This trend is observable globally.
According to eMarketer, out of the 168 million users of Internet-connected TVs, half opt for smart TVs directly, while the other half use smart set-top boxes such as Apple TV, Roku, Google Chromecast, or Amazon Fire TV Stick.
In the U.S., Roku leads with 38.9 million users, followed by Google Chromecast with 36.9 million users, and Amazon Fire TV in third place with 35.8 million users. Apple's Apple TV, despite its premium build quality and seamless integration into Apple’s ecosystem, lags significantly with only 21.3 million users, accounting for just 12% of the market share.
A visual representation of these statistics is provided below.
From a product perspective, Apple TV offers excellent craftsmanship and a top-notch user experience. Yet, it struggles to win over a larger audience. One of the primary issues highlighted by eMarketer analyst Paul Verna is the lack of compelling content. Many consumers feel that paying 4-5 times more for an Apple TV than for a Roku or Amazon product isn’t worth it.
Verna noted that Apple TV has been held back by the absence of enticing content offerings. In contrast, Amazon’s video content has seen increasing popularity. While Apple prices its TV at around $150, rivals like Google and Amazon offer comparable devices for under $40.
Looking ahead, Verna predicts that Apple TV will continue to trail behind its competitors over the next few years. By the end of 2021, Apple's competitors could see an additional 20 to 30 million users, whereas Apple TV will likely gain fewer than 4 million new users.
Since its launch in 2006, Apple TV has aimed to help Apple establish a stronghold in users' living rooms. Apple is actively addressing these challenges, primarily by enhancing content offerings to attract more users. Recently, Apple hired two former Sony executives to bolster its original content strategy. Shows like "Carpool Karaoke" and "Applied Planet" are set to premiere soon. There are also rumors that Apple is negotiating with major film studios to explore the possibility of releasing movies exclusively on its platform. Some speculate that Apple might even consider acquiring a Hollywood studio outright.
In mainland China, Apple TV hasn't been introduced due to regulatory restrictions. Instead, platforms like Youku and iQiyi, along with companies such as Xiaomi and Letv, have long been investing in the smart TV and set-top box market. For Apple, entering this competitive landscape presents an additional challenge.
This shift in consumer behavior underscores the growing influence of internet-based entertainment solutions over traditional cable services. As the battle for dominance in this space intensifies, Apple faces the daunting task of not only catching up but also maintaining its position as a leader in innovation and technology.
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