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Smart TVs losing ground to streaming boxes

08 Aug 2018 | Rasmus Larsen |

Video streaming consumption is moving from PCs to mobile devices and from Smart TVs to streaming boxes such as Apple TV and PlayStation, according to a report by analyst company Conviva.

Streaming boxes take share

Conviva can measure video streaming across 3 billion apps installed on devices from over 200 brands, and has started publishing quarterly reports. Netflix is not included but the numbers still give us a good idea of the direction in which the video market is heading.

First and foremost, the report states that video streaming consumption has more than doubled (115%) from 2017 to 2018.

Video streaming consumption has more than doubled from 2017 to 2018
The report includes a breakdown of the devices that we use to stream movies, TV shows, sports, and other type of video. In Q1 2018, Apple TV grew faster than any other platform in the wake of strong holiday sales. The small black box is still taking share in Q2 2018 but not as swiftly. Roku continues to lead the pack by a significant margin, despite not being a global player.

However, a more significant trend revealed in the numbers is that PCs are losing share to mobile devices, whereas Smart TVs – that have never held any significant share – are losing out to streaming boxes (measured in viewing hours) such as Apple TV, FireTV, Roku, and game consoles.

- “PCs are losing share to mobile devices, while among connected TV platforms, Samsung and other TV platforms are losing ground to Roku, Google’s Chromecast, Sony’s PlayStation, and Amazon’s Fire TV,” Conviva said.



Android TV remains small

The numbers reveal that usage of Samsung Smart TV (Tizen), which is the only platform large enough to break out as a separate category, fell by 16% year-over-year, measured in viewing hours.

It is even worse for “Other TV” that includes platforms such as LG Smart TV (webOS) and Android TV. Usage of these Smart TV platforms collectively fell 43% year-over-year (measured in viewing hours).

In other words, it would appear that consumers prefer streaming boxes, including game consoles, over built-in apps in Smart TVs. The report did not offer an explanation but it may be related to the fact that Smart TVs only offer a subset of the relevant streaming services available and that Smart TVs rarely receive updates.

It should be noted that the Amazon Fire TV and Roku platforms are increasingly being implemented in Smart TVs. The numbers for those two respective platforms cover streaming boxes as well as Smart TVs. Likewise, Chromecast is integrated in all Android TVs.

The market for video streaming is growing briskly and much can change on the path to wider adoption but a pattern is starting to form. Consumers seem to gravitate towards the platforms that receive regular system updates and offer a wide selection of apps and services.

- Source: Conviva



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