Rapid TV News - OTT boxes, smart TVs lead connected devices market
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Research by Ampere Analysis has revealed that online households now own an average of 4.5 different types of connected devices, with subscription video-on-demand driving the uptake of products.

ampere OTbox14June2018The survey of 22,000 respondents in ten markets found that Windows devices dominate homes at present. 90% of online homes own at least one Windows based device, typically a laptop or a desktop. Samsung comes in at second place; almost two thirds of respondents globally (65%) own one or more Samsung device.

But whereas the majority of Windows devices are personal computers, Samsung device usage spans a mix of smartphones, tablets and smart TVs. Apple is at third place, present in 53% of online households.

Striking a note of caution, the research revealed that many devices are now reaching saturation point, particularly laptops, smartphones and tablets. Uptake for laptops has peaked as they are substituted with smartphones and tablets across all age brackets.

Yet despite this of saturation, Ampere observed that OTT boxes were driving device growth in 2018 and beyond. The latter, and sticks, fell into one of the fastest growing categories of connected device, driven in part by older consumers who have begun to adopt OTT boxes. Within the last two years, ownership of boxes and sticks has doubled amongst those aged over 44. Google’s Chromecast remains the market leader, favoured by one in three consumers globally. But Amazon’s Fire TV Stick has made a big impression on the European market, most notably in the UK and Germany where it is the number one streaming box/stick. It is also closing in on Roku’s market leader position in the US.

Significantly, the research also highlighted that there was a symbiotic relationship between the availability of high quality media content and smart TV purchases. For every 10% of homes that have an SVOD subscription, about 6% of homes will buy a smart TV within a two-year period.

Ampere calculated that effectively this means that for every additional $1 that is generated by Netflix in subscription revenue from new customers in their first year, $1.20 is made by TV manufacturers selling smart TVs to them. This said the analyst demonstrates that content is key for device manufacturers, and likely to become a bigger driving force behind consumers’ technology choices in the future.

“In a market of increasing saturation and standardisation, brand loyalty counts more than ever,” said Sarah Fisher, analyst at Ampere Analysis. “In this respect, Apple is a clear winner, especially with its skew towards younger, more affluent consumers. But while Apple has a clear and loyal following amongst its enthusiasts, the research shows that it has some way to go to close the gap with Samsung in terms of sheer market reach. As Smart TVs are still a high growth area, a market from which Apple is absent and Samsung is a dominant player, Samsung is the one to watch.”