Apple To Expand Distribution of Apple TV Software

According to LoupVentures, a market analysis firm, Apple TV is surprisingly more popular than we think. The research firm says that 21% of US households use Apple's set-top box regularly.

When Apple announced its services business in its March event, there wasn’t much cheer in the audience – offline and online. Everybody was apprehensive about Apple’s success in bringing its contents to the living rooms of viewers. But now it seems that Apple has achieved some success in its TV business.

Even as Apple is yet to launch its entertainment staple, the tech giant’s low-profile product Apple TV is making progress without grabbing any attention. According to a market analysis firm, 21% of US households regularly use Apple TV hardware.

Apple’s Streaming Services Likely to Grow Dramatically

Unlike iPhone, iPad, Apple Watch, and Mac, Apple’s set-top box doesn’t appear in public. Since it is used in the living rooms of people, everybody underestimates Apple TV’s popularity.

With the integration of Apple TV software in third-party television sets, Apple’s streaming services are likely to grow dramatically.

Gene Munster from LoupVentures reports, “Four years ago, our belief that Apple would make a TV became a fairytale when the company shut down its standalone TV hardware development.”

But Munster adds, “Apple’s approach to the living room has been a slow hobby in the company’s words, led by Apple TV which we estimate is now used in 26m US homes monthly (21% of US households). We believe there are 53 million active Apple TVs worldwide.”

Instead of selling its hardware, Apple has begun to integrate its TV software in third-party TV makers. This is a step forward in Apple’s living room strategy, which is similar to its CarPlay.

Apple, at its WWDC 2019, reported that CarPlay is now available in 90% of new vehicles in the United States and 75% globally.

This clearly defines Apple’s goal – expansion of Apple TV software distribution to grow the reach of Apple’s Services (Apple TV+, Apple Music, and content rentals and purchases).

If Apple continues to hold this strategy, it can expand its Apple TV installed base in the US by around 2 million units per year. This prediction is based on 26 million Apple TV units in the US.

That’s all folks!

What is your thought?

Many would argue that Apple is killing its set-top box by allowing third-party TV makers to install the software. Gene Munster, however, believes that “the standalone box will continue to offer two features not available on third-party display integration. First, the Siri remote which is increasingly used for navigation and content discovery. Second, the ability to pair a PlayStation or Xbox game controller is a measurable value add for the upcoming Arcade gaming service.”

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