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Smart TV devices: TV dongle sales grow, Pay TV subscriptions decline

US Pay TV subscriptions have been in decline over recent years. With advancements in technology and the way some viewers changing the way they watch their favorite TV shows, it is observable that growth in the online streaming services industry presents an opportunity to those like Sky and BT. Additionally, companies like Amazon Video & Netflix reaping in the subscribers worldwide. This has meant a huge surge in popularity for Smart TV devices which host applications allowing them to project their streaming content on pretty much any modern TV. With the apps that are constantly updating their content and abilities, this is to have a major effect on Pay TV subscriptions in the years to come.

US TV subscriptions have been in decline over recent years, and this is expected to continue in the near future as viewers change the way they watch TV, opting for more cost effective options such as Netflix and Amazon Video subscriptions. With more freedom to watch any episode at any given time via online streaming services, this lets people plan their shows around their life rather than planning their lives around the shows through scheduled TV slots on Pay TV services.

The same cannot be said for online streaming applications. Netflix for example, has enjoyed impressive growth over recent years in both the US market and international alike. This growth is expected to continue over the years to come.

Growth in the streaming services means some viewers need a device that can attach to their TVs USB port or HDMI slot, that is able to host these applications. The growth in the streaming industry has increased the need for devices like Apple TV and the Amazon Fire Stick. Although most devices achieve the same thing, they are priced incredibly differently depending on brand and capability.

Amazon has a significant advantage over its competitors through its distribution channel (its website). This has allowed it to act aggressively and restrict the sales of its competitor devices such as the Google Chromecast or the Apple TV. Thus, promoting the sale of its own devices has led to the significant lead in popularity. While the price has contributed as a successive advantage, the Apple TV may seem to have limited its own market by restricting use to Apple users as its main form of audience. Other devices are open source, and therefore allow all smartphones to connect to the device.

Full insight available on the MarketLine Analyst Insight section available to our subscribers.

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