02.22.2012 03:46 PM
Originally featured on BroadcastEngineering.com
OTT digital video receivers grow in popularity among U.S. broadband households, says Parks Associates

New data from Parks Associates confirms digital video media receivers, such as Apple TV and Roku, are growing in popularity with the latest tally revealing nearly 13 percent of U.S. broadband households now own such devices.

A recent Parks Associates consumer survey, “Value of Video: Shifting Consumer Dollars,” also finds 31 percent of U.S. broadband households regularly watch TV programs or movies accessed via the Internet on their TVs.

“In the 2011 holiday season, 4 percent of households bought one of these inexpensive, single-function devices, which enable households to view over-the-top (OTT) video from Internet-based services such as Amazon Prime Instant Video and Netflix," said Kurt Scherf, VP, principal analyst, Parks Associates.

Apple reported 2.8 million unit sales of Apple TV in its fiscal 2011 and another 1.4 million coming in the holiday quarter. Roku saw sales top 1.5 million units for the year. For 2012, the research firm forecasts more than 14 million digital video media receivers will be sold.

Although the growing acceptance of these devices by broadband households does not equate to cancellation of pay-TV services, said Scherf, the trend “can mean shaving some premium channels” by some households. “That is a risk that pay-TV providers must address and a trend that both manufacturers and content providers are following with eagle eyes and plans for defensive actions,” said Scherf.

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