Cable / Telecom News

Set top demand to decline after 2010


THE SUBSCRIPTION TELEVISION industry is characterized by two broad growth patterns: maturing markets with decaying rates and high growth/emerging markets, says research firm In-Stat

In more mature markets, such as North America, growth will come from premium services (HD and DVR/PVR), while emerging/high growth markets will experience a period of relatively robust subscriber acquisition likely followed by consolidation and a gradual decay in the growth rate, says the company.

"Within mature markets, demand for set-top boxes is expected to soften, if not decline," said Michael Inouye, In-Stat analyst, in a release. "These markets will have growth in the number of premium boxes, and to some extent, these units will bolster the market, although with subscriber churn, gross adds declining, and leasing business models, the overall demand will fall over time.

“Asia/Pacific has the highest growth potential in the coming years, as India expands and there is the prospect of a relatively large Chinese market."

In-Stat also found:

* The growing number of premium services and related boxes are creating a favorable product mix with higher return.
* Set-top box unit shipments in 2008 are expected to eclipse 80 million, growing to a peak of 83.5 million in 2010.

www.in-stat.com