Apple Devices Dominate TV Everywhere Viewing



Apple devices play important role in TV Everywhere growth

TV Everywhere allows cable network users to access content online. According to the Adobe Digital Index (ADBE) Q1 2015 Digital Video Report, the penetration of TV Everywhere into households has gone up from 9.4% in 1Q14 to 13.2% in 1Q15.

Apple (AAPL) devices are playing an important role in this increased penetration. According to the report, and as you can see in the above graph, iPad, iPhone, and Apple TV took the first, second, and fourth positions for devices used in streaming online video for the TV Everywhere service. Android-based devices took third position. This means that Apple devices make up about two-thirds of the share for consumer use of TV Everywhere.

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Apple plans to launch its own TV subscription service

The popularity of Apple devices to stream video content has made Apple consider launching its own subscription TV service. In our Market Realist article Apple’s Subscription TV Service: No Launch Next Week, we saw that Apple is planning to offer programming on its own devices from about 25 TV networks. The networks include Walt Disney (DIS) ABC, CBS (CBS), and 21st Century Fox (FOXA).

Leslie Moonves, president and CEO (chief executive officer) of CBS, has announced that CBS is interested in signing a deal with Apple when it launches its web TV service. Even content providers are interested in tying up with Apple, simply because Apple’s devices are immensely popular ways to stream video.

To get a diversified exposure to Apple, you can invest in the Technology Select Sector SPDR ETF (XLK). XLK invests 17.6% of its holdings in Apple.


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