Video gateways a bright spot in slumping STB market

Friday, March 14th, 2014 
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CAMPBELL, California — Market research firm Infonetics Research released excerpts from its 4th quarter 2013 (4Q13) and year-end Set-Top Boxes and Pay TV Subscribers report, which tracks IP, cable, satellite, and digital terrestrial (DTT) set-top boxes (STBs), and over-the-top (OTT) media servers.

ANALYST NOTE

“The overall set-top box (STB) market declined in 2013, but cable and satellite video gateways had a very strong year, with shipments growing 333% and 98%, respectively,” says Jeff Heynen, principal analyst for broadband access and pay TV at Infonetics Research.

Heynen continues: “Video gateways collapse the STB and broadband CPE into a single device, and it’s for this reason we expect to see a long-term shift to these devices, at least in North America, to reduce capex in multiple TV set homes.”

Pace, Cisco, ARRIS, Echostar, OtherSET-TOP BOX MARKET HIGHLIGHTS

  • The global set-top box (STB) market—including IP/cable/satellite/DTT STBs and OTT media servers—totaled $18 billion in 2013, a decline of 10% from the previous year
  • Pace closed out 2013 as the worldwide STB revenue and unit share leader, though Arris claimed the revenue share lead in 4Q13
  • Cisco, on the strength of its telco IP STB sales, finished 2nd in STB revenue in 2013
  • The use of OTT media servers is growing, not only for consumer multimedia use in the home, but also for service providers delivering pay-TV services as an app over a broadband connection
  • Infonetics expects global IP video gateway revenue to grow at a 79% compound annual growth rate (CAGR) from 2013 to 2018

STB REPORT SYNOPSIS

Infonetics’ quarterly STB report provides worldwide and regional market size, vendor market share, forecasts through 2018, analysis, and trends for IP STBs; cable and satellite STBs (digital, hybrid, video gateways, media players); DTT STBs; and OTT media servers. The report also tracks telco IPTV and cable and satellite video subscribers. Vendors tracked: Advanced Digital Broadcast (ADB), Apple, Arris Group, Changhong, Cisco Systems, Coship, DVN, Echostar, Huawei, Humax, Jiuzhou, Kingvon, Netgem, Pace plc, Roku, Sagemcom, Samsung, Skyworth Digital, Technicolor, ZTE, and others.