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For Apple TV, The Price Is The Problem

September 08, 2017

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

Too Much TV? Enter HBO Max, the Latest Streaming Wannabe

“People are going to look at the price point first,” said Steve Nason, research director at Parks Associates. HBO Max costs $15, same as the HBO Now streaming service it's supposed to replace, with di...

Some NFL+ users struggle to watch games on the app

Consumer issues with accessing the NFL games are also indicative of a fragmented sports streaming landscape. Eric Sorensen, a senior contributing analyst with Parks Associates, noted in July how curre...

As ‘Game of Thrones’ Returns, Is Sharing Your HBO Password O.K.?

The effect on the companies’ bottom lines remains unclear, but a study by Parks Associates, a research group, found that sharing cost the streaming video industry $500 million in 2015. One reason t...

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A study released this month by Parks Associates found only 18 percent of consumers would buy a smart thermostat at $250, but offering a $100 rebate more than doubled the pool of interested buyers....

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