Connected TV devices, a popular option for online video streaming
We’ve already seen how Apple (AAPL) devices are dominating the share for streaming online video content through TV Everywhere. In the last article, we looked at Apple TV’s growth of the share from 5% in 4Q14 to 10% in 1Q15. Doubling the share in just one quarter is worth your attention.
According to the Adobe Digital Index (ADBE) Q1 2015 Digital Video Report, the share of connected TV devices used for TV Everywhere has increased from 6% in 1Q14 to 24% in 1Q15. That’s an increase of four times in the last year, as you can see the above graph. The report also mentions that devices such as Apple TV, Roku, and Microsoft’s (MSFT) Xbox are the most popular connected TV devices.
Netflix leads the video subscription market
There’s a reason for the increased popularity in connected TV devices to stream video content. The sole purpose of these devices is to provide quality streaming content to consumers. The popularity of TV Everywhere has happened fast for a number of reasons. It provides convenience and schedule flexibility, but it also allows consumers to skip commercials and watch multiple episodes sequentially. The growth of TV Everywhere has directly benefited the growth of connected TV devices.
Netflix (NFLX) remains the leading paid video subscription service in the United States. Comscore confirmed this in a report that said about 42% of US households subscribed to paid digital video subscription services as of August 2014. Of that number, 32% subscribed to Netflix, 19% to Amazon (AMZN) Instant Video, and 9% to Hulu Plus.
To get a diversified exposure to Apple, you can invest in the PowerShares QQQ Trust, Series 1 ETF (QQQ). QQQ invests 14.3% of its holdings in Apple.