At 8 a.m., tech enthusiasts woke up to some interesting news: according to eMarketer, a market research firm, by the end of this year, approximately 168 million people worldwide will be using connected TVs. That’s an increase of roughly 10% compared to last year. However, many consumers seem to prefer brands like Roku, Amazon, or Google over Apple when it comes to choosing a streaming device.
A quick glance at the accompanying image shows just how sleek and modern Apple TV looks, but despite its premium design and seamless integration with Apple's ecosystem, it hasn’t quite captured the consumer imagination. As of now, Apple TV ranks fourth in the U.S. market with around 21.3 million subscribers, holding only a 12% share. Meanwhile, Roku leads the pack with 38.9 million users, followed closely by Google Chromecast with 36.9 million and Amazon Fire TV Stick with 35.8 million.
Paul Verna, an analyst at eMarketer, pointed out that one of the main issues lies in pricing and content. Many potential buyers feel that paying four to five times more for an Apple TV compared to alternatives like Roku or Amazon Fire Stick simply isn’t justified. Additionally, Apple TV struggles to offer the same level of compelling content as its competitors. While Amazon has been expanding its library significantly, Apple TV remains priced at $150—far above the under-$40 range offered by Google, Amazon, and Roku.
Looking ahead, Werner predicts that Apple TV will likely continue to trail behind its rivals over the next few years. By the end of 2021, competitors could see an additional 20 to 30 million new users, whereas Apple TV might only add less than 4 million.
Since its debut in 2006, Apple TV has aimed to establish itself as a key player in the living room entertainment space. To address these challenges, Apple appears to be focusing heavily on enhancing its content offerings. Recently, they hired two former Sony executives to bolster their original content strategy. Upcoming projects include the highly anticipated “Carpool Karaoke†series and “App Planet.†There are also whispers of negotiations with major studios to release certain films exclusively on the Apple platform. Some reports suggest Apple might even consider acquiring a Hollywood studio outright.
In mainland China, Apple TV faces another hurdle—it hasn't launched due to regulatory restrictions. Instead, platforms like Youku and iQiyi, along with smart TV manufacturers such as Xiaomi and Letv, have dominated the market for years. Entering this competitive landscape could prove exceptionally challenging for Apple.
All things considered, while Apple TV undoubtedly offers top-notch craftsmanship and integration within the Apple universe, it still needs to overcome significant hurdles to compete effectively against established players in both pricing and content diversity.
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