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IHS: 1.7B Video Streaming Devices Shipped in 2013

9 Dec, 2013 By: Erik Gruenwedel

Roku 3 media devices with headphones

Streaming devices include media adapters, Blu-ray Disc players, PCs and smartphones

More than 1.7 billion devices capable of accessing over-the-top (OTT) broadband video such as Netflix and Hulu Plus shipped in 2013 — up 20% from 1.43 billion units in 2012, according to new data from IHS. The market is projected to gow another 20% in 2014 to about 2.67 billion units by 2017 — up 86% since 2012.

OTT-enabled devices include set-top boxes, Blu-ray Disc players, Internet-enabled TVs, video game players, digital media adapters like Apple TV or Roku, media tablets, PCs and smartphones.

“Content owners, operators and consumers all are driving the proliferation of the OTT model,” said Jordan Selburn, senior principal analyst, consumer platforms, in a statement. “Content owners want to expand the market for the films, music and videos they own. Meanwhile, operators wish to use OTT in order to add value to their services and keep subscribers from cancelling TV subscriptions in favor of purely broadband connections — preventing what the industry calls ‘cutting the cord.’ Consumers, for their part, desire access to a wide variety of media at the time and place of their own choosing.”

IHS found the majority of OTT devices are either PCs or smartphones, which together accounted for 836 million of the 1.43 billion OTT-capable devices shipped last year. Even though the primary task of the two devices is voice and data, both are also increasingly being used as media portals.

When subtracting smartphones and PCs, the OTT device market is growing at an accelerating rate. Approximately 480 million of non-PC, non-smartphone devices will ship this year, up 30% from 2012.

Notably, digital media players such as Roku and Apple TV represent a scant 1% of the overall OTT device market.


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