GLOBAL DEMAND FOR both satellite and terrestrial set top boxes hit a new high in 2009, with worldwide set top box unit shipments increasing 11% to 210 million unit shipments, says a new report from In-Stat. But even after a record year, the market still faces formidable challenges in the near future.
“The set top box market will be solid for the next few years”, said In-Stat analyst Mike Paxton. “However, there are some emerging threats that will test the market’s long-term viability.”
According to The Digital Set Top Box Market: Demand Remains Solid, Despite Threats, foremost among these threats are over-the-top video products, like Apple TV or TiVo’s Premiere product, which could permit consumers to “cut the cord” of their pay-TV service; software platforms that enable consumer electronic devices to function like, or even replace, a set top box; and consumer electronic devices, such as video game consoles and TV sets, that can increasingly replicate the capabilities of a digital set top box.
The research also determined that:
– Satellite set top boxes, the largest market segment, accounted for 48% of 2009 global set top box unit shipments;
– Competition in the set top box market is increasing. In 2009, 17 manufacturers shipped over one million units;
– Unit shipments in 2010 are projected to decrease slightly, returning to 2008 levels;
– Hybrid set top boxes that integrate IP video with an existing broadcast platform will ship in significant numbers in 2011, particularly in Europe; and
– Sustained demand for advanced set top box products like HD-capable set top boxes and PVR-enabled products, coupled with the continuing analog-to-digital transition, will keep the set top box market vibrant through at least 2012.
