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Technicolor/Cisco deal wise move in shrinking STB market

Technicolor/Cisco deal wise move in shrinking STB market

Technicolor/Cisco deal wise move in shrinking STB market

The recent €550 million acquisition by Technicolor of the Cisco set-top box and related home broadband equipment business reflects a common trend in a shrinking global STB market place, according to a new Futuresource report.

The report reviews worldwide STB shipments, highlighting that they fell 2% to 275 million units in 2014, due to minimal growth or actual cut backs in key emerging markets like Russia, Brazil, China and India.

Accordingly, the recent consolidation between the top 4 vendors clearly strengthens their positions through economies of scale and market share, putting even more pressure on the smaller players.

However, Futuresource says that a clear picture of the current landscape will be established if/when the pending deal between Arris and Pace gains regulatory approval, potentially establishing a 23% leadership position and share of the market.

Cisco’s total connected device sales are expected to total $1.6 billion in fiscal 2015, which will effectively double Technicolor’s Connected Home business in a full year, when it will ship over 60 million devices worth about $3.3 billion.

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