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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

The Simple Reason Why I Won't Buy Roku Inc.

Roku (NASDAQ:ROKU) went public on Sep. 28, its stock surging nearly 70% from its IPO price of $14 per share. The stock hit almost $30 the following day, but subsequently pulled back to the low $20s....

Consumers' Dependence on Broadband Gives Comcast a Streaming Opportunity

However, that's not the most noteworthy detail of the Parks Associates report for Charter and Comcast shareholders. Curiously, only about one-fifth of those internet users questioned subscribe to a st...

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...

Roku Stock: After Soaring 330% in 2019, Is It a Buy, Sell, or Hold?

Meanwhile, Roku's dominance is more evident than ever, with the company's devices accounting for 39% of the U.S. streaming media player installed base, according to estimates by Parks Associates. With...

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