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Annual Set Top Box Shipments to Reach 120 Million Units by 2011 - The demand for set top boxes (STBs) continues to rise, with more than 65m cable, satellite and IPTV digital STBs shipped globally last year. And the market is on track to grow at 13% CAAGR to 120m annual shipments by 2011
Annual Set Top Box Shipments to Reach 120 Million Units by 2011

 

NewswireToday - /newswire/ - Dunstable, Bedfordshire, United Kingdom, 2007/05/14 - The demand for set top boxes (STBs) continues to rise, with more than 65m cable, satellite and IPTV digital STBs shipped globally last year. And the market is on track to grow at 13% CAAGR to 120m annual shipments by 2011.

   
 
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These figures exclude Digital Terrestrial Adapters and Free-To-Air (FTA) Satellite receivers, which together helped drive the total worldwide STB market to 115 million units in 2006 and will fuel further growth as over-the-air broadcast markets move towards Analogue Switch Off (ASO) at the end of this decade.

Pay-TV Competition a Key STB Market Driver
STB demand is being fuelled by the continuing global rollout of digital multi-channel TV services. The STB gives Service Providers a secure platform enabling them to ‘push’ added value services like High Definition, PVR (Personal Video Recorder), Video on Demand and Multi-Room.

In competitive Pay-TV markets, new entrants must invariably deploy STB technology to break into the market against established operators at present.

Digital Upgrades and New Market Entrants
Going forward, Understanding & Solutions predicts that the Pay-TV STB market will be sustained by upgrade of the maturing digital satellite market, high growth for digital cable - largely driven by the conversion of analogue customers - and new market growth from IPTV as Telcos and other BSPs (Broadband Service Providers) drive into Digital Video services.

Multiple services provision (so called ‘Triple Play’) is now the order of the day, with Digital TV, Voice and Broadband (also Mobile for ‘Quad Play’) now being bundled at increasingly attractive prices.

STB Role in IP Networking and Broadband Services Integration
“The growth of Online TV and Video is both threat and opportunity to the STB industry,” says Andrew Carroll, Consultant at Understanding & Solutions. “Broadband may possibly impact the need for dedicated digital TV infrastructure long term, but, for the next 2-3 years at least, subscription Service Providers actually see the STB as a way to network and integrate broadcast and IP (Internet Protocol) services into one seamless ‘any content, any screen’ proposition for customers.”

Security and QoS (Quality of Service) will remain key STB added value elements. ‘Live’ broadcasting will remain a key reason for dedicated services infrastructure for several years in a period of increasing load on the Internet as Video and TV traffic continues to mushroom.

Challenge of Open Systems
The STB industry is also challenged by drive towards Open Systems such as interactive CableCard in the USA. This can allow consumer electronics products like TV receivers to interface to subscription networks by the addition of a simple Conditional Access Module (CAM).

However, industry research by Understanding & Solutions suggests that the impact of this will be generally limited, at least for the next 2-3 years. Operators are likely to continue to use STBs as competitive levers in the battle to acquire and retain subscribers, at least for the next 2-3 years.

Added value features and network services enabled by STBs will become increasingly important competitive differentiators as well as the traditional elements of Content choice and/or exclusivity.

Notes:
Driving Digital Content: meeting consumer needs in-home and on the move 7-8 June 2007, The Cumberland Hotel, London
Understanding & Solutions is delighted to announce a two-day conference focusing on the business opportunities presented by the rise of digital content delivery.

“Driving Digital Content: meeting consumer needs in-home and on the move” will bring together key figures from leading consumer electronics companies, content owners and producers, broadcasters, service providers and industry associations, to identify the opportunities within digital content delivery and their impact upon the wider industry.

Authorised use of information
All information provided by Understanding & Solutions in any form is proprietary information that belongs to Understanding & Solutions and is protected by UK and international copyright law. Except as outlined below, direct or indirect reproduction of information, in whole or in part and by any means, is prohibited without the express written consent of Understanding & Solutions.
Members of the press may use a press release in its entirety or take segments from it as necessary; they may also use a graph, a slide, or a section of a supplied research report less than fifty words long, provided all text is identified as “Source: Understanding & Solutions” and all graphics are credited with “Understanding & Solutions, Copyright 2007".

 
 
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Annual Set Top Box Shipments to Reach 120 Million Units by 2011

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