WebProNews

Apple TV leads when it comes to Internet video delivery devices but such devices have had difficulty gaining traction with consumers because of higher prices and competition from set-top-boxes according to ABI Research.

"Since this category first emerged in 2004-2005 with the debut of Akimbo's public Internet VOD product, vendors of these products have struggled with a number of hurdles that have so far made this market relatively unsuccessful," says research director Michael Wolf. "

"The high cost of these devices, their reliance on the home network, the need for consumer self-installation, and the scarcity of content have all contributed to their lack of commercial success."

ABI believes things could change next year and that devices like Apple TV will see shipments of 1.2 million in 2008. ABI says that the increased availability of content should help the market grow along with high definition films available online and the demand for user generated content.

Wolf says, "We believe that there is a possibility of a break-out success among these new entrants if they can create compelling content offerings, make consumer installation and management incredibly easy, and offer both the hardware and content at compelling pricing. We believe one way to achieve this is by incorporating some premium content using advertising support."