Strategy Analytics: Apple TV now leads set-top boxes

December 13, 2011 By Geoff Duncan

The lowly Apple TV - Apple's "hobby" for several years - is now the leading player in set-top boxes, according to Strategy Analytics.

Market research firm Strategy Analytics has issued a new report that claims Apple has captured yet another market: TV set-top boxes. Strategy Analytics expects the market for TV set-top boxes to reach 12 million units this year, with Apple accounting for nearly one third of the market, or about 4 million units. The report also finds that Apple TV owners spend more money on movies and TV shows—although the numbers are surprisingly low for a device that was essentially envisioned as a gateway to Apple’s iTunes store.

“Apple is leading this nascent market, which it still considers a ‘hobby,’” said Strategy Analytics senior analyst Jia Wu, in a statement.

Overall, Strategy Analytics finds that some eight percent of U.S. households have a TV set-top box that brings in streaming or Internet-based content—that number is slightly higher than in Europe, where the figure was seven percent. Strategy Analytics attributes quickly adoption of the devices to lower price points set by the Apple TV and Roku—the second-generation Apple TV is $99, while Roku boxes start at just $49.99.

The report finds that 30 percent of Apple TV owners rented movies or TV shows through the device, compared to just 20 percent of users of other set-top box and streaming devices. The figure is surprising, given that the Apple TV was primarily envisioned as a way for users to tap into content from the iTunes store from a television rather than from a computer or other device. The percentages suggest the most popular feature of the Apple TV is not its access to the iTunes store, but rather its Netflix client and the ability to bring in content from around the home network via AirPlay.

Apple has famously described the Apple TV as a “hobby,” and despite an exciting second-generation refresh a year ago that brought the unit’s price down to $99, has largely consigned the product to long periods of neglect as Apple focuses on other businesses. However, the apparent success of the Apple TV may bode well for the much-rumored Apple TV, fueled by Steve Jobs telling biographer Walter Isaacson that he had finally “cracked” the problem of providing a fully integrated television experience.

Showing 3 comments

jakep_82 at 11:20am 13th December 2011 They're obviously not figuring in game consoles which have most of the same features. My Xbox has Netflix and Hulu as well as movie rentals through Zune (and soon Vudu). It's more money at $200, but it's better value when you consider that it's also a game console, DVD player, and media center extender.
1. TechFreak at 8:28pm 13th December 2011 Never thought about that. That would put the true numbers in the 30+million I would presume.
TechFreak at 10:53am 13th December 2011 12 million units for the whole segment it a lot lower than I expected. Would this include Blu-ray players which now have Netflix and other apps built into them? Probably not would be my guess. I really don't see this market growing too much since you will see all new TV's having these features built in. Probably why Apple will be making their own TV's soon too.