According to consumer research company Parks Associates, Apple TV is continuing to lose tracking among consumers for living room entertainment. Apple TV is losing market share to both Amazon and Roku, according to their survey. Park Associates sampled more than 10,000 homes and had at least one streaming player.
Roku seems to have gotten the biggest benefit, jumping from 32 percent to 37 percent year-over-year. Amazon on the other hand is also gaining ground and jumped from 16 percent to 24 percent. By contrast, Apple fell year-over-year from 19 percent to 15 percent market share. Even Google’s Chromecast dropped to 18 percent from 21 percent market share.
What is the reason for this? Well, it could be one of many. One of the main reasons is the price difference. Roku’s convenient and aggressively priced streaming sticks and boxes are giving it an advantage over the much-more expensive Apple TV, which sells for either $150 or $200 depending on the storage capacity you opt for.
When looking at Amazon’s Fire TV Stick, it costs just $40 and offers a wide range of streaming services and apps. If you’re looking for a box, the Fire TV box costs $80, which is much more affordable than Apple TV cost ($150/$200).
Unlike Apple’s tvOS, Roku’s software does also come preinstalled on many affordable TVs and other devices. This is a strategy that has helped the company gain further traction. Amazon is starting to take a similar approach.
Apple is expected to announce a 4K Apple TV soon. Will it be enough to compete with the likes of Roku and Amazon? Only time and consumers will tell.