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For Apple TV, The Price Is The Problem

In late 2014, Amazon launched the Fire TV Stick for $40. Compared to the $100 Fire TV box that launched earlier that year, the Stick had significant performance hiccups, and the first version of its remote control didn’t support voice commands.

But again, consumers didn’t mind. Within a year, Amazon’s stick was outselling its box 3 to 1, according to Parks Associates. A spokeswoman for Parks says the Fire TV Stick now makes up 81% of all Amazon Fire TV devices owned in U.S. broadband homes.

The success of cheap streaming TV devices is now having a profound impact on the Apple TV business. Both Parks Associates and ComScore show Apple TV in fourth place among U.S. broadband customers, behind Roku, Amazon Fire TV, and Google’s Chromecast.

From the article "For Apple TV, The Price Is The Problem" by Jared Newman.

Previously In The News

AT&T Deal: Merger For New Media Era Or A Bad Remake?

Pay-TV operators are seeing a "slow erosion of the core business," analyst Brett Sappington at Parks Associates said. "After years of attempts to be more than just a 'dumb pipe,' pay-TV operators h...

4 Ways Alphabet Is Expanding Its Television Offerings

It's difficult to say for sure that's why similar devices from Roku (NASDAQ:ROKU) and Amazon (NASDAQ:AMZN) have left Alphabet in the dust in terms of market share, according to numbers from Parks Asso...

DirecTV Wants To Be The Online Substitute For Cable

But analysts estimate that Sling has racked up fewer than 1 million subscribers since it launched in February 2015. Vue’s numbers are harder to get a handle on, but it’s not on the list of top 10 most...

Bulls vs. Bears: Who's Right About Roku Stock?

Roku faces myriad competitors, but it still dominated the U.S. streaming device market with a 37% share as of early 2018, according to Parks Associates. Amazon ranked second with a 28% share, and Appl...

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