Xiaomi unveils streaming media device for the U.S.
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Chinese smartphone manufacturer Xiaomi announced a partnership with Google last week that will result in the launch of an Android-powered TV set-top box in the US, according to ZDNet.
The device will let users stream content from over-the-top video service providers or play Android games on TV. It will also give owners access to various games from the Google Play store. This is a big win for Xiaomi, which has largely been unable to tap into the US market with any of its devices thus far.
The company hopes that partnering with Android will give it the boost it needs to gain traction in the US market. A number of Xiaomi's accessories are already available in the US via its international online store, but this is the first device tailor-made for the US market. However, these devices have mostly failed to give the company the kind of brand recognition that other Asian manufacturers such as LG and Samsung have in the US.
Xiaomi could use a boost after generating lackluster smartphone sales in China last year.The company has struggled to gain market share among stiff competition from other domestic vendors, including Huawei, OPPO, and Vivo. In Q1 2016, the company controlled 12.2% of the Chinese smartphone market, down from 12.8% year-over-year (YoY). That puts it in third place among vendors behind Huawei and OPPO, according to Strategy Analytics.
The official cost and availability of the Mi Box for the US market has not been revealed as of yet. However, Xiaomi already offers a number of versions inside China. These include the Mi Box mini, Mi Box standard, and Mi Box enhanced version. The devices range in price from $30 (199 yuan), $46 (299 yuan), and $61 (399 yuan), respectively. It’s likely that the company will offer something in the higher-end range, which would still vastly undercut existing brands such as Apple TV and Roku, which retail for $150 and $120, respectively.
The streaming video top-box market is expected to grow rapidly over the next five years, as hardware prices fall and the library of streaming video on-demand (SVOD) content grows, a BI Intelligence report notes. We forecast that 240 million streaming media devices will ship in 2016, up 10% YoY from roughly 219 million units shipped globally in 2015.
Jessica Smith, research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on streaming media devices that sizes up this market by device category and takes a more granular dive into each.
The report includes new shipments forecasts, identifies major players, and assesses the advantages and weaknesses of each device category. It also examines how usage and ownership may vary among device categories and the implications of this upswing on various ancillary markets, like advertising and app development.
Here are some key takeaways from the report:
- Streaming media device adoption is rising fast as over-the-top (OTT) streaming video services — such as Netflix and HBO NOW — make it easier than ever to ditch traditional pay-TV. We expect global shipments of streaming media devices to grow at a 10% compound annual growth rate (CAGR), from 240 million in 2016 to 382 million in 2021.
- Over the next few years, we expect the market for streaming media devices to grow and consolidate. In the long term, newer technologies like virtual reality will become a leading connected device segment. However, in the next five years, smart TVs, gaming consoles, and media streamers will remain the top categories by a wide margin.
- Smart TVs currently dominate shipments, accounting for three-quarters of device shipments in 2015. As people upgrade their TVs, the global installed base of smart TVs will grow from 584 million in 2016 to 896 million in 2021.
- As streaming media device uptake rises, stakeholders throughout the larger media ecosystem will need to adapt to consumers' changing habits. Legacy TV providers will likely need to offer skinny bundles or their own OTT subscriptions to stay relevant, while advertisers will want to capitalize on the opportunities available in targeting streaming viewers using demographic and behavioral data. App developers, platform creators, and game makers will also have a stake in where and how streaming activity develops.
In full, the report:
- Identifies the major device categories in the streaming media market.
- Sizes up the current reach and shipments forecast for each device category.
- Compares and contrasts the benefits and downsides of each device category within the greater streaming media ecosystem.
- Examines the major players in each device category.
- Assesses the gap between streaming media device installed base and usage.
- Explores how this growing market is impacting other industries in its peripherals.
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