A new analysis has revealed the top streaming media device manufacturers in terms of 2014 sales. Roku leads the market with 34 percent of sales, while Google, Amazon and Apple round out the top four. Amazon has overtaken Apple, which was previously No. 3.
Amazon may have exceeded Apple in sales because of the choice it provides to consumers. Amazon offers its Fire TV in a traditional box and also includes a less expensive streaming stick variation, as does Google with its Nexus Player and Chromecast stick. Apple only manufactures a set top box, Apple TV.
Apple, however, remains in third place in actual usage of the devices, with 17 percent compared to Amazon's 14 percent. Usage is just as critical a metric as sales, in that usage drives additional revenue streams such as advertising and content purchases.
The report states that the top four manufacturers account for a total of 86 percent of sales on these devices. This market saturation by the big players means there are significant obstacles for newer competitors, who will have to distinguish themselves with new functionalities.
As Barbara Kraus, director of research at Parks Associates noted in the report:
"The market consolidation around these four brands forces new entrants to develop more creative features and functionality to tap into the strong consumer demand for streaming content. Devices with additional functionality such as the Intel Compute Stick may be a sign of things to come, where streaming is not the primary function but an extra feature to provide additional value."
The study also determined that 20 percent of U.S. households using broadband had some sort of set top streaming media device, while 8 percent owned streaming sticks such as Google Chromecast, Amazon Fire TV Stick or Roku's HDMI Streaming Stick. Two percent of households owned at least one set top box and one streaming stick, indicating that consumers are generally choosing one or the other for their streaming video usage.
