Amazon Launches Fire TV Stick

In the growing competitive field of Streaming Sticks, Amazon introduced the Fire TV Stick today. Designed to take on challengers like the Roku Streaming sticks and Chromecast dongle, Amazon’s HDMI-based media adapter represents a smaller, less expensive complement to their $99 Fire TV box. The new smaller and even more affordable device sells for $39 and features access to Netflix, Prime Instant Video, Hulu Plus, Twitch, WatchESPN and a variety of other services right out of the box.  Jeff Bezos, Amazon.com founder and CEO, said in announcing the new product, “The team has packed an unbelievable amount of power and selection into an incredible price point.”

The company said the Fire TV Stick has 50 percent more processing power and 2x the memory of Chromecast, and 6x the processing power, 2x the memory, and 32x the storage of Roku Streaming Stick It supporting standards like DIAL allowing users to fling shows from services like YouTube, Spotify, and Netflix (coming soon) from an Android phone or iPhone. They began to take pre-orders today and will start shipping the new product on 19th of November.

Overall the specs look good and based on Amazon great success with the Fire TV Box, which launched a little more than six months ago and quickly became the best-selling streaming media box on the e-retailer, the Fire TV Stick might be the first product that will be a serious challenger to Chromecast in terms of both features and value. Obviously Mr. Bezos believes he has a winner, the rest of us will have to wait and see how it performs in the real world to be sure. More: TechCrunch.com 10/27/14 - Amazon’s New Fire TV Stick Is A $39 Chromecast Competitor With A Hardware Remote and Variety.com 10/27/14 - Amazon Whips Out TV Stick Against Google’s Chromecast and Roku and/or Twice.com 10/27/14 - Amazon Unveils Fire TV Stick

OTT gains on traditional TV particularly among Millennials.

Late yesterday, measurement specialist comScore, issued a research paper titled "The U.S. Total Video Report" that looks at shifting TV viewing habits in the digital age. There's little doubt that American's viewing patterns are quickly changing, and our youth are leading the way.  The study – The U.S. Total Video Report, which tabulated results from 1,159 respondents in August – found that Millennials (adults 18 -34), watch original TV shows on digital platforms one-third of the time. ComScore notes that the older the viewer, the more likely to watch on a TV set. In other bad news for TV broadcasters, comScore found that 1 in 6 millennials hadn't watched an original series on a TV set in the past month. Instead, they're getting their video from set-top boxes such as Roku and Apple TV, and game consoles.

Unsurprisingly, Millennials are also more likely to be cord-nevers or cord-cutters and they are more likely to time-shift their viewing: 46 percent of them time-shift shows, while only 35 percent of those 35 to 54 do so.  Among other findings, consumers who subscribe to paid digital video services are more likely to binge-view TV shows over a monthly period – 87% vs. 69%. TV via the DVR (43%) is the preferred binge-viewing platform, followed by the TV via VOD (19%); Internet connected TV devices (12%); live TV – a category that includes reruns or marathons from MVPDs – (11%); tablets (4%), desktops/laptops (3%); and smartphones (2%).

While comScore's results are interesting, their methodology  and approach called Total Video to track unduplicated audience metrics across platforms has some flaws. ComScore surveyed 1,159 viewers with an online questionnaire, so those surveyed are all active internet users. The report is available for free download (registration required). MORE: TechCrunch 10/14/14 - Netflix Leads In U.S. Digital Video Subscriptions In Home And Among Millennials by Ingrid Lunden

Roku enables screen mirroring for Android and Windows devices

In what seems like an effort to catch up with Apple's Airplay and Google's Chromecast, Roku, the leading OTT device manufacture unveiled their screen mirroring feature yesterday.  Launching in beta, This should work with anything that supports Miracast screen mirroring, but so far Roku has only tested a handful of devices to ensure a stable connection.

In the companies blog they state: "Screen mirroring is one of the simplest ways to share any type of content with those around you, and you won't need additional apps or software. All you'll need is a compatible device with mirroring capabilities. Once you turn on mirroring for your phone, tablet or laptop, you can pair with your compatible Roku player (presently Roku 3 or the Roku Streaming Stick) and whatever you see on your mobile device is exactly what will be displayed on your TV."

In full disclosure we use their streaming HDMI stick at home and it packs a lot of punch for the dollar. I believe this is a great first step for Roku, as it takes their inexpensive streaming hardware and opens up a whole new world of opportunities. This isn’t likely to be used by the casual user, which is Roku’s target market, but it makes this hardware a lot more compelling to a wider audience now. More: engadget.com 10/03/14 - Roku tries out screen mirroring from phones and PCs

Cord Cutting Slowing

Recent reports state that connected devices have exceeded 1 billion home makes one wonder where the "cord cutters" really are when new data from analysts MoffettNathanson shows that the pay-TV business only lost about 300,000 subscribers in Q2. But that’s basically flat compared to a year ago, and that’s a change from the year-on-year declines of the previous few quarters.
And after factoring in the housing market a key driver for pay TV the research firm concludes that “it appears that cord cutting slowed to an annualized rate of 400k homes, a meaningful deceleration and well below the peak rates of cord cutting seen in 2012.” More: Recode.net 08/07/14 - "What Happened to all the Cord Cutters?"

Connected TV Device Market to Grow 100% by 2017

If you don't have a streaming media player (we have two and I'm considering a third already!) by now, it's likely you will in the next few years. According to the NPD Group, the number of streaming media devices in the U.S. will reach 204 million with in the next three years, an increase of 100% and a total that will be more than double the number of projected households connected to the Internet.
The connection rate is also projected to increase. While 60% of Internet-capable devices are currently connected, NPD projects that 76% of installed units will be connected by 2017. The evolution of hardware and digital content distribution is constantly changing the TV viewing experience," said Buffone, executive director of NPD Connected Intelligence, “The hardware is able to engage with consumers in ways that it hadn’t before. Over the coming years, the consumer’s preferred device for apps on TV will be shaped by the next generation of video game consoles, Smart TVs, and a new wave of streaming media players.” MORE: RapidTVNews.com 07/23/2014 - Connected TV device market to skyrocket in US or MediaPost 07/22/14 - Connected TV Device Market Set To Explode

Connected TV Devices Exceed 1 Billion

New research from Parks Associates and also from Strategy Analytics puts the number of connected TV devices, which includes set-top boxes, smart televisions, game consoles and more, now exceeds 1 billion installed units, and are on pace to hit the 2 billion mark by 2018. No surprise that Roku is now the most widely used streaming media player in 44 percent of American homes that watch online video through their living room TV.

The studies verify that nearly two-thirds (65 percent) of pay-TV subscribers have at least one device connected to their TV, according to Parks, an increase from 53 percent in 2013.  Roku devices and Apple TVs account for 72 percent of streaming media device sales in the U.S. in 2013. Up and coming Google’s Android TV/Chromecast and Amazon's new entry, FireTV could both prove to be strong future competitors, the report notes, while also pointing out Apple TV as a "sleeping giant." MORE: 07/10/14 - techcrunch.com - Connected TV Market Crosses 1B Devices As Google Pins Its Hopes On Android TV or ParksAssociates - The Evolving Market for Streaming Media Devices (sub. req.) or 07/09/14 FierceCable - Parks: Roku owns 44% of the U.S. OTT device market

64% of U.S. Homes Have one or more CE Devices Connected to the Internet

According to a new research report from Parks Associates, (64%) of US broadband households have at least one consumer electronics device connected to the Internet, which could include a smart TV, Blu-ray player, game console, set-top box, a digital media receiver or Google Chromecast. Gaming consoles were found to be the most popular of connected devices. The report also noted that of the 50+% of U.S. households that use connected consumer electronics devices also subscribe to Netflix. By comparison, Amazon, which has made significant gains in the OTT video market this past year now has nearly 20 per cent of all US broadband households as Amazon Prime Instant Video subscribers.

Apple TV, Roku _ Who's Winning the OTT War and what are we Watching

Among those who use streaming media players, Roku owners access new subscription video platforms more than Apple TV which becomes more interesting when you factor in that currently there are more Apple TV devices deployed. This new research was published and presented at this week's NAB show by Parks Associates where they profiled the different device owners streaming and content purchasing habits. Their findings showed that 86% of Roku owners use one or more subscription OTT service, versus only 77% of Apple TV owners. Additionally, 75% of Roku owners use Netflix, compared to 63% among the Apple TV crowd. As a point of difference, more Apple TV owners use Amazon Prime Instant Video – 40% versus 28% and Apple TV also has a clear lead in sales passing $1 billion last year. On a similar topic, the latest study from video delivery firm Qwilt shows that Amazon's Instant Video is the third largest video site (March 2014), behind Netflix (57.5 percent) and YouTube (16.9 percent). Although it's sitting at a modest 3%, Amazon is still beating out Hulu (2.8 percent). I expect to see this number rising  considerably, since this data was collected before the Fire TV set-top box hit the market last week. More: 04/09/14 Advanced Television - More Roku owners than Apple TV owners use OTT and 04/09/14 Multichannel News - Roku Tops Apple TV In OTT Usage: Study and Qwilt 04/04/14 - Amazon Rising – Amazon’s Streaming Video Surpasses Hulu and Apple

Roku gets Smart (TV)

Anthony Wood broke the news late Sunday prior to the CES show that Roku has decided to take another route to win the war for controlling your TV, soon Roku will be integrated into your new smartTV. Partnering with TCL and Hisense, the company plans to release the Roku TV later this year. This is a bold move from a company that has already positioned themselves as the leader in the OTT world. The field however is becoming crowded with existing and new entries all over at the 2014 CES show. This new strategy if carried out correctly could be the beginning of an entirely new era for connected TV's.
 MORE: Roku Blog - 01/05/14 Introducing Roku TV or WIRED - 01/06/14 Roku TV Is the First Smart TV Worth Using or

Amazon Plans OTT Set Top Box

Amazon is on track to release a video-streaming STB prior to the end of the year, according to the WSJ. The device code-named ‘Cinnamon’ is said to be similar to the Roku 3 or Apple TV players and is similarly styled as a platform to run applications and content from a variety of sources including the obvious choice, Amazon Prime. A set-top box would deepen Amazon’s reach into the living room, where it is currently dependent on other hardware makers to reach consumers watching video on TV sets. Providing a device of its own is a potentially crucial component to Amazon’s ambition of expanding beyond its core online marketplace business.

 

In recent weeks Amazon has approached a variety of app developers and cable TV providers seeking partnerships for the rollout of its set-top box. They have set a deadline of mid-October to submit apps for the device, said the Journal's sources. More: CNET 10/04/13 - Amazon recruits variety of apps for set-top box, report says and WSJ Online 10/03 - Amazon Readies Set-Top Box for Holidays

Reed Hastings - 10 Reasons why Internet TV will continue to gain popularity

After Netflix’s blockbuster earnings sent its stock soaring yet again earlier this week, Reed Hastings, the company’s CEO made a bold prediction: TV as we know it is coming to an end.  “As Internet TV grows from millions to billions, Netflix, HBO, and ESPN are leading the way,” Hastings wrote in an 11 page manifesto about Netflix’s future. “Internet TV will replace linear TV.”

He's obviously not sharing his perspective alone because numerous networks and stations have agreed with his views on the limitations of linear television and have launched their own apps. Although Hastings cites WatchESPN, HBO GO and the BBC iPlayer as leaders in this arena, we must also acknowledge the industry disrupters in streaming television technology; Aereo and the Dish's Hopper. Each of these also have huge potential to cause a dramatic shifts in the TV business as it heads into the future. Case in point at the opening of this year’s NAB when News Corp (FOX) COO Chase Carey threatened to take their programming off the broadcast airwaves and convert to cable channels. This was followed later by Univision and later CBS. While viewed largely as saber-rattling, the idea that the networks could be converted into cable channels gained attention in the television world because such a move would have wide-reaching implications for viewers and station owners. The point may be mute if Hastings predictions hold true and we move from broadcast and cable to an unbundled & streamed viewing environment.
Feel free to look at his letter to shareholders earlier this week and the 10 reasons he believes why Internet TV will continue to gain popularity, concluding that “over the coming decades and across the world, Internet TV will replace linear TV. Apps will replace channels, remote controls will disappear, and screens will proliferate”.

Let me share them with you here:

1. The Internet will get faster, more reliable and more available
2. Smart TV sales will increase and eventually every TV will have Wifi and apps
3. Smart TV adapters (Roku, AppleTV, etc.) will get less expensive and better
4. Tablet and smartphone viewing will increase
5. Tablets and smartphones will be used as touch interfaces for Internet TV
6. Internet TV apps will rapidly improve through competition and frequent updates
7. Streaming 4k video will happen long before linear TV supports 4k video
8. Internet video advertising will be personalized and relevant
9. TV Everywhere will provide a smooth economic transition for existing networks
10. New entrants like Netflix are innovating rapidly

Update 05/01 - A view from Michael Grotticelli at Broadcast Engineering - Netflix unveils plan to replace broadcast television

Amazon will soon enter your Living Room with their own OTT/STB

Online retail giant Amazon is developing a set-top box device that will stream video content from the web to your TVs, according to Bloomberg Businessweek. The STB device, which is due later this year, will provide access to Amazon’s expanding video services, which include Amazon Prime Instant Video, a service which provides access to more than 37,000 feature films and TV episodes for free. Users will also be able to buy/rent film and TV titles via Amazon Instant Video. Much like other streaming devices from Boxee, Roku and Apple, Amazon's box will also offer access to video services like Netflix and Hulu Plus, though Amazon's video offering will likely be heavily integrated into the device.
 
Some could say that Amazon is late to the OTT game, but the reasons for doing a set-top box are obvious, with its original content being the most popular on the platform since it launched. As Amazon finds its way to more niche shows that it can present exclusively, the reasons to grab an Amazon-branded device for your TV makes more sense. In the same way that Apple leverages each of its devices to sell new ones, Amazon is learning how it’s done. Jeff Bezos leads his company by taking smart, calculated steps all the while capitalizing on mistakes made by others. Kindle-TV anyone?

Roku App Coming to the Second Screen

Streaming video provider Roku is currently testing a second-screen application for tablets that the company hopes to release in the "near term," according to Ed Lee, vice president of content acquisition for Roku. He stated in a presentation at this week's OTTCON conference that the company is "thinking about the second screen quite a bit." He declined to provide specifics on the Roku's plans for the product, but said it would work on Roku owners' tablets and allow them to obtain additional information on the content they watch via their Roku device.

“We're evaluating it right now,” Lee said of the tablet application. “It's certainly coming in the near term.

More at: Media-Saver Tech Blog - Roku planning second-screen tablet app