IPTV News

Set-top box shipments to peak in 2012, says ABI Research

November 19, 2008 - The global market for set-top boxes will grow "gradually" over the next few years and peak at around 110mn shipments in 2012, according to new projections from ABI Research, before commencing a gradual decline for all platforms (DTT, IPTV, DBS and CATV), due in part to the expected completion in most developed countries of the digital switchover.

Set-top box revenues however are expected to show a different pattern, according to Robert Clark, Principal Analyst at ABI Research: “STB revenues for all platforms have declined significantly between 2007 and 2009, but will recover by 2010 and remain relatively stable through at least 2013.”

Sales of basic set-top boxes are described as having been in decline for a while, and HD-only and PVR-only models are also now showing the first signs of downturn, according to the research firm. From 2009 onwards, Mr Clark expects that the market will witness a greater share of combined HD/PVR sales, especially in the DBS segment.

Pay-TV platforms are expected to be particularly affected through 2012 by the threat of displacement by over-the-top video, and the substitution potential of residential gateways, media hubs and gaming boxes. STB components meanwhile are expected to become increasingly integrated into TVs themselves.

In terms of revenue, IPTV is thought to be the most affected of all pay-TV platforms by the current global dip in set-top box turnover, with the recent economic upheavals exacerbating an existing slow down caused by network operators rethinking their future investments, especially in terms of differentiation.

“The STB won’t disappear as a result of threats from other set-top devices,” adds Mr Clark. “But in the DTT sector where the needs are more basic, there is an opportunity for STB component integration into newer flat screens."