Parks Associates Blog

Wednesday, September 01, 2010

Apple TV thoughts

If the first iteration of Apple TV failed to gain traction, Apple's second effort could certainly allow it to capture a significant portion of the digital video player market. The low entry price ($99), the small form factor, and access to Netflix streaming content will all boost Apple's chance at making a significant dent in this market. We're particularly intrigued by Apple's ability to expand its target market beyond the core iPhone or Mac afficianado with the access to the Netflix streams - with 15 million subscribers, that is a significant market for Apple to address.

So, how big a market are we talking for digital video players? We estimate that household penetration will exceed five million U.S. households at the end of 2010 and will reach 14 million households by year-end 2014.

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