Growing demand for Internet set-top boxes

14% of broadband households currently use an Internet set-top box (ISTB) such as Roku or Apple TV to access over-the-top video content on their TV, according to a new report from The Diffusion Group.

The research found that ISTB use is particularly prominent among early Millennials – those aged between 25 and 34 – and late boomers – those aged between 45 and 54.

It was also revealed that 29% of adult broadband users are likely to purchase a new ISTB in the next six months, while 48% of current owners are likely to purchase another.

“The fact that current ISTB owners are significantly more likely than non-owners to buy an ISTB speaks volumes about the multi-room future of ISTBs,” said Michael Greeson, co-founder of TDG and director of research.

“This in no way diminishes the extent of new demand, but it speaks to the fact that once a household owns an ISTB and understands its benefits, they want it on all their TVs.

“As well, it appeals to operators looking for an inexpensive, consumer-subsidised way to expand their advanced digital TV services to other rooms of the home. This is positive news for both ISTB and ‘Internet stick’ vendors.”

Greeson suggests that for ISTB vendors there should be two different messages for two different segments – one for the “younger, highly-educated, on-the-move Millennial”, and one for a “less technologically-sophisticated pragmatist” looking for a way to bring online video content to their TV.