CABLE TV SET TOP BOX MANUFACTURERS enjoyed a record year in 2006 as cable operators around the world signed up millions of new digital cable subscribers.
A report from the high tech research firm In-Stat says the results, fueled by a sharp rise in demand for cable set top boxes in China, show worldwide digital cable set top box unit shipments increased to 27.5 million in 2006, a giant spike in comparison to the 15.6 million units that shipped in 2005.
However, while the "big two" North American suppliers, Motorola and Scientific-Atlanta, enjoyed strong unit and revenue years, their overall global market share dipped dramatically
And, look for a robust 2007, too. "In-Stat expects that digital cable set top box unit shipments will again be strong in 2007, led by sustained demand from cable operators in North America and China," said Mike Paxton, In-Stat analyst, in the press release.
"However, 2007 will also be a year of transition for cable set top box manufacturers as the so-called ‘7-07’ mandate, which effectively ends the integration of security directly into a cable set top box, goes into effect in the U.S. in July."
In-Stat also found the following:
* The Chinese cable TV market is deploying digital cable set top boxes at a record pace. Digital cable set top box unit shipments in China rose from 2.2 million in 2005 to over 9 million in 2006.
* Revenues for cable set top boxes also set a new record in 2006 at
US$4.2 billion, up from US$3.1 billion in 2005.
* Motorola and Scientific Atlanta both enjoyed record years for cable set top box unit shipments and maintained their positions as the top two cable set top box manufacturers. However, their combined worldwide market share decreased from 69% in 2005 to just 49% in 2006, as Asian and European set top box manufacturers captured new business in markets outside of North America.
* High-end cable set top boxes continue to be the key market driver for the North American market. These boxes, such as Personal Video Recorder-enabled or high-definition (HD)-capable set top boxes, accounted for over 8 million unit shipments in 2006, up from the 6 million that shipped in 2005.
