Joseph O'Halloran ©RapidTVNews | 08-09-2011
New data from Infonetics Research has concluded that a strong upgrade cycle ebbing in North America and Europe along with a rising uptake in online TV via over the top (OTT) devices will cause the set-top box (STB) market to peak in 2011.
In addition to the increased move to adopt OTT media players such as Apple TV and the Roku Media Player, and despite healthy growth in IP and hybrid IP STBs, the analyst expects the traditional STB market to show single digit decline to 2015 and beyond.
In its second quarter 2011 (2Q11) Cable, Satellite, IPTV, and OTT Set-Top Boxes and Subscribers market share and forecast report, Infonetics believes that despite sequential declines in cable TV, IPTV, and hybrid IP/DTT STB sales, the overall STB market held steady in 2Q11 at $3.45 billion, with a healthy satellite TV STB market mitigating an overall decline of a single percentage.
In terms of suppliers, Pace’s strategy of offering products across all platforms segments paid off allowing it to overtake Motorola in terms of overall STB revenue in 2Q11. Moto maintained its grip on the cable STB revenue and in the key IP STB segment, Cisco captured a commanding lead both in revenue and shipments,
"The overall set-top box market held steady in the second quarter of 2011, with pockets of growth evident in all regions, particularly Central and Latin America. Pure IP STBs remain a bright spot with year-over-year global revenue growth at over 27%, as telcos are experiencing strong demand for their IP-based video services. Looking forward, early signs indicate a robust period of opportunity is imminent for the hybrid IP segment, particularly in the cable market, as hybrid IP STBs have the same capabilities as standalone OTT players plus the added benefit of providing linear broadcast television programming," said Teresa Mastrangelo, directing analyst for video at Infonetics Research.