Apple leads streaming video market
DetailsMichelle Clancy | 05 June 2015
Apple TV is the market leader for authenticated and unauthenticated streaming video, according to Adobe Digital Index (ADI).
Its research found that Apple TV controls the major share of TV everywhere viewing. In addition, iOS devices (iPhone and iPad) represent the majority (82%) of all unauthenticated mobile video viewing.
"Apple is sitting in the catbird seat because of its dominant position with access to consumers and a wealth of video data," said Tamara Gaffney, principal analyst at ADI. "The challenge will be to see if it can monetise the strategy fast enough to get ahead of the movement away from linear TV toward digital viewing. Apple is clearly looking to play in the video-streaming market, and the growth of that market is a big indicator as to why."
Indeed, the streaming video market is growing rapidly. TV everywhere viewing, for example, has seen 282% growth year-over-year (YoY), with Apple TV devices doubling their share of premium video viewing quarter-over-quarter (QoQ) from 5% to 10% – overtaking Roku.
Growth can't be attributed to singular events, such as the World Cup, according to Gaffney. "This is more organic," she said. "It goes to show that this industry is taking off, and, clearly, that's why Apple is trying to get out in front of it."
Apple devices currently drive 62% of all authenticated pay-for-TV video views. Roku also saw an increase in share, as use of connected TV devices becomes more popular.
Overall, connected TV devices, such as Apple TV and Roku, and gaming consoles, such as Xbox, saw dramatic TV everywhere share growth, from 6% to 24% YoY. These devices have taken share away from Macs and PCs; marketers need to take note and adjust strategies accordingly, Gaffney said.
"The key takeaway from our analysis is that the streaming video space is growing fast, and Apple is growing by building out an ecosystem of devices as it relates to that space," Gaffney said. "Apple is leaning toward having a bigger play there than in the past. For marketers that means having a blanket approach to advertising is not going to work. They need to think about who is viewing and when. The strategy needs to be evolving and more complex to match the evolving and more complex nature of the landscape."