Apple TV falls behind competition as Internet-connected TV continues to grow

“According to new research by eMarketer, 168 million people will use Internet-connected TV this year, up about 10% from last year,” Michael Potuck reports for 9to5Mac. “More growth is expected for the coming years, but it looks like many consumers will be opting for hardware from Roku, Amazon, and Google instead of Apple.”

“eMarketer says that about half of the 168 million people using connected TV this year will do so from a Smart TV,” Potuck reports. “The other half will use a set-top box like Apple TV, Roku, Google Chromecast, or an Amazon Fire TV Stick, which are the top four products on the market.”

“Roku leads the market with 38.9 millions users, followed by Google Chromecast coming in second with 36.9 million. Amazon Fire TV is a close third place with 35.8 million,” Potuck reports. “Apple lags significantly behind in fourth place with 21.3 million users, just over 12% of the connected TV market.”

Read more in the full article here.

MacDailyNews Take: Apple obviously needs compelling original exclusive content, a totally new Siri Remote designed by someone who has actually used a TV remote, 4K capability, and aggressive hardware pricing (that will be more than offset via recurring subscriptions and purchases on the back end).

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35 Comments

  1. Can’t believe they have done such a poor job with AppleTV…especially the ATV4….mine just collects dust as I have zero compelling arguments to fire it up….Love the cool screen-savers though….

    1. ATV for was doomed from the start it lacks 4K at a time it was needed and this app mantra is just a joke. Apple needs new leadership for sure and not just at the Tim Cook level

  2. Apple just needs content period.
    I don’t even think it has to be original. But Apple should at least have any 3rd party content that any other TV box or service (Hulu, Vudu, Netflix) has!

    Why can’t Apple offer a digital movie subscription service with at least as many movies as Netflix or Amazon?

    And don’t get me started on live sports.

  3. “eMarketer says that about half of the 168 million people using connected TV this year will do so from a Smart TV,” Potuck reports. “The other half will use a set-top box like Apple TV, Roku, Google Chromecast, or an Amazon Fire TV Stick, which are the top four products on the market.”

    I wonder what percent of SmartTVs are GoogleTV based? This would significantly change the percentages when considering the TV OS platform developers will be targeting.

    1. I just bought a new 4K TV and it comes with Amazon and Netflix built in. Don’t even need the Amazon Fire I have, and I used to use it 50x more than the ATV. I don’t mind simplifying inputs at all.

      I used to believe Apple would win the war for the living room, but it’s been clear for a few years now that they won’t.

  4. I have to admit – I’m about to look at a non-Apple solution here. I have waited, and waited, and waited, and… It is time to get something worth having hooked up to my TV.

    My Apple TV (v.2) still has a great interface, good response, and the iPhone app is makes for a decent remote. But there should be so much more by now. Even the upgrade to the 3rd version wasn’t enough to get me to buy a new device.

    Then again, I can do most of the same on my iPhone and send it to my aTV, so maybe not so big a deal. We’ll see. I do wish for more content available. 4K doesn’t bother me that much. Yes, I can see it. It is very noticible. But HD doesn’t offend me.

  5. I run both a Roku and an ATV4. I don’t have a 4K TV, so I don’t (currently) care about that, but the only thing that keeps me from dumping the Roku is Amazon Prime video.

    But Apple needs to lead the pack here. The designless remote, the lack of 4K support – they’re simply evidence of lack of real commitment on Apple’s part to leading the TV market.

    Hey Tim – lead or get out of the way. Apple should NEVER be a follower.

  6. MDN’s take is spot on.

    As much as I personally like the Apple TV 4 remote, it’s clearly an issue for many people and Apple should address this.

    Likewise, 4K, HDR, HEVC… these appear to be coming soon, but can’t come soon enough. Hopefully will soon launch hardware and a large library of content. If Apple can provide the largest 4K library, this will help out a lot, especially if they can provide an upgrade/transition deal (but I highly doubt they can).

    The upcoming Amazon app will help, but Apple also needs good exclusive content.

    In the meantime, I’m pretty happy with my Apple TV 4 units and Mac mini Plex server.

  7. Apple is leaving Billions on the table with a lack luster services business. Always late and not an exceptional offering as is the case in hardware. Mostly. The weak link in the executive team and the same in charge of the most important segment of Apple and the one segment with all of a Wall Street looking at is Eddy Cue. His public remarks are an embarrassment. I think you will see him leave Apl by years end. If so the stock will pop 5% – 10%. He is an example of a fat rich lazy out of touch executive. Time to cut the fat.

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