HD demand boosts set-top uptake
Editor | 27-10-2013
The increased pace of high-definition services added to more and more pay-TV will drive a commensurate surge in set top box (STB) sales according to new research from TechNavio.
TechNavio's report, the Global Set Top Box Market 2014-2018, forecasts the global STB market will grow at a CAGR of 2.14% over the period 2014-2018. It also reveals four key vendors "dominating" the market space – Cisco, Huawei, Pace and Technicolor respectively – with a chasing pack including ARRIS, Broadcom, Comcast and EchoStar.
With the improving video quality and emergence of HD channels, TechNavio believes the the demand for HD STBs is increasing. Yet it cautions that the high cost of advanced STBs could pose a challenge to growth.
The report states that one of the main challenges hindering the growth of this market is the high cost of advanced STBs such as IPTV and hybrid STBs. TechNavio notes that as these STBs have advanced features such as recording, live video control, and accessing the content over internet, their cost has been on an upward trajectory.
Commenting on the report, an analyst from TechNavio’s team said: “The pay-TV market is one of the biggest revenue contributors to the global set top box market across the globe. With the large number of channel choices available to subscribers, consumers are increasingly subscribing to more channels. Further, digitalisation is likely to increase the subscription of pay-TV as subscription-based TV services are more popular in the digital platform than in the analogue platform. Another reason for the increase in number of pay-TV subscribers is the growth of the In-house Entertainment market. Hence, the positive impact on the related industry market."