On the morning of July 27, eMarketer, a market research firm, revealed that 168 million people globally will use connected TVs this year, marking a roughly 10% increase from last year. However, many consumers seem to prefer devices like Roku, Amazon Fire TV, or Google Chromecast over Apple TV.
Attached is an image showing various connected TV devices (source unavailable due to formatting restrictions). Apple TV has undergone four generations of updates since its debut in 2006. The internet is reshaping how we consume television, transitioning viewers from traditional cable TV to streaming platforms. This shift represents a significant battleground between tech giants and traditional cable networks, with cable still holding considerable sway across the globe.
According to eMarketer, half of those using Internet-connected TVs do so via smart TVs, while the other half rely on smart set-top boxes like 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, and Amazon Fire TV with 35.8 million. Apple TV trails significantly, with just 21.3 million users, representing only 12% of the market share.
Despite Apple TV’s sleek design and seamless integration with Apple's ecosystem, it hasn’t gained the popularity one might expect. Analyst Paul Verna from eMarketer points out that Apple TV struggles due to a lack of compelling content. Many consumers find Apple TV’s pricing—around $150—unjustified when compared to cheaper alternatives like Roku or Amazon Fire TV Stick, which cost under $40. Verna predicts that Apple TV will continue to lag behind competitors through 2021, expecting growth of less than 4 million users, while rivals will add 20–30 million new users.
Apple has been trying to address these shortcomings. They recently hired two former Sony executives to bolster their original content efforts. Series like “Carpool Karaoke†and “Applied Planet†are set to launch soon. There are also rumors that Apple is negotiating with major film studios to release movies exclusively on their platform. Some speculate that Apple might even consider purchasing a Hollywood studio outright.
In mainland China, Apple TV faces additional challenges. Due to regulatory issues, it remains unavailable in the country. Instead, local companies like Youku, iQIYI, Xiaomi, and Letv have long been active in the smart TV and set-top box space. For Apple, entering this market presents a particularly daunting task.
Overall, while Apple TV boasts high-quality hardware and software, its content offerings and pricing strategy appear to be hindering its growth. As streaming continues to evolve, Apple must adapt quickly to remain competitive in this rapidly changing landscape.
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