OTT growth drives shipments of digital media adapters

By Jim O'Neill on Jul 13 2016 at 9:45 AM
OTT growth drive shipments of digital media adapters

Consumers are watching more OTT content and that’s driving a surge in the digital media adapter (DMA) market.

2015 saw 42 million DMAs ship globally, a 15% bump from 2014, said Futuresource Consulting. The market, which includes devices like Apple TV boxes, Roku devices, Chromecast and Fire TV devices, currently is valued at $1.9 billion worldwide, and is expected to grow 50% by 2020 as shipments top 63 million. The U.S., with a 19% share, now is the top market for DMAs, passing China. Western Europe and Latin America also saw strong growth last year, with more than 50% growth in shipments.

The report doesn’t include shipments of connected TVs or game consoles.

“Netflix’s worldwide expansion plans and the increasingly strong foothold of Amazon Prime means that the addressable market (for DMAs) has increased considerably,” said David Tett, market analyst at Futuresource. “The rise in popularity is also due to an attractive interface along with a range of well-maintained range of apps. These ensure that DMAs are a popular option for video streaming, despite the availability of alternative streaming devices such as Smart TVs, IP STBs and game consoles.”

Google’s low-cost Chromecast dongles continues to be the biggest seller in the market, the company said, taking about 19% of market share. The continued growth of the Amazon Prime Instant Video service also helped increase sales of Amazon’s Fire TV box and Fire TV Stick, Fututesource said, with shipments growing 200% in the past year.

Both Apple TV and Roku remain strong in the sector.

Stay tuned.

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