Joseph O'Halloran | 25-07-2013
Demand for set-top box products remains healthy, with worldwide shipments on track to exceed 230 million by the end of 2013, according to new research from the Multimedia Research Group.
In terms of the demand for the products, the research found that growing demand for set-top box products in emerging markets, particularly for cable and satellite STB products in countries such as China and India, is sustaining unit shipment growth. At the heart of this is the digitisation programmes being undertaken in both countries, the first and second largest cable TV markets in the world.
Overall, MRG calculates that worldwide digital cable set-top box unit shipments increased by 10% in 2012 and are expected to continue to increase modestly in 2013. This market is led by Motorola (now part of ARRIS) who shipped more than 11 million units in 2012. Worldwide, satellite STBs unit shipments reached nearly 109 million in 2012, up from about 100 million in 2011. For 2013, MRG is projecting that satellite set-top box unit shipments will continue to rise slightly and long-term demand for satellite set-top boxes is expected.
Yet despite all of this, MRG say that the underlying dynamic is that STB revenues will continue to get squeezed. The analyst predicts that product revenues will decrease again in 2013 to approximately $19 billion, as pricing pressure on set-top boxes increases. Moreover it forecasts that over the next few years, global revenues will drop to $17.9 billion in 2015.