Sales Volume of China's STB Market Reaches 3.592 Million Sets in 2008Q1

Thursday, May 29th, 2008

With the rapid development of digital TV, China’s STB market develops rapidly in 2008Q1. CCID Consulting’s data shows that the sales volume of China’s STB market reaches 3.592 million sets in 2008Q1, up 45.6% over 2007Q1.

Based on the research of China’s digital TV industry, CCID Consulting releases China’s DTV STB Report in 2008Q1. CCID Consulting provides reliable base to enterprises’ customized products, service, technology and competitive strategy through the reaches of market status and development trend.

The sales revenue of China’s STB market reaches 1.322 billion Yuan in 2008Q1, up 19.5% over 2007Q1. Sales revenue’s growth doesn’t accord with sales volume’s growth. The major reason is that the average price of STB has a rapid downslide in recent years. Especially for local enterprises, their prices are not expensive.

Based on powerful market operation ability, Changhong wins quarterly sales volume champion in 2008Q1, which accounts for 17.4% of the total market. Digital Video Networks is runner-up whose market share is 16.5%, and Jiuzhou is the third place, whose market share is 11.8%.

Figure 1. The Brand Sales Volume Structure of China’s DTV STB Market in 2008Q1

Changhong, Digital Video Networks (DVN Holdings), Jiuzhou, Skyworth, Coship, YinHe, Huawei, Dahua, Tongfang, Daxian Tsinghua

Source: CCID Consulting, April, 2008

Because the terrestrial DTV which faces ordinary residents just starts and STB has high price, the sales volume of China’s terrestrial DTV STB in 2008Q1 comes from onboard mobile TVs; satellite DTV direct seeding star does not launch, satellite users come from village-to-village connection projects; IPTV users develop rapidly, but its base is bigger than terrestrial and satellite users base, so its growth rate is relatively low; cable TV is still the principal part, its market share is over 90%. It is forecasted that because cable TVs’ integral translation is speeding up and other DTVs have too many restrictive factors, so cable DTV’s market share will increase.

Table 1. The Type Structure Change of China’s DTV STB Products in 2008Q1 (thousands)

              Q1 2007  % share  Q1 2008  % share  Growth (Y/Y)
              -------  -------  -------  -------  ------------
Cable           2,266    91.9%    3,346    93.2%         47.7%
Terrestrial        52     2.1%       58     1.6%         11.5%
Satellite          22     0.9%       29     0.8%         31.8%
IPTV              127     5.1%      159     4.4%         25.2%

  TOTAL         2,467   100.0%    3,592   100.0%         45.6%

Note: In terrestrial DTV STB data, onboard mobile data includes digital TV; satellite users doesn’t include illegal user

Source: CCID Consulting, April, 2008

China’s STBs’ sales regions focus on north China, east China and south China, which is has certain correlation with regional economic development, population quantity base and the Administration of Radio Film and Television’s layout. With integral translation’s propulsion, the sales volumes of STB sales volumes in northwest, southwest, northeast and southwest will gradually increase.

Figure 2. The Sales Volume Structure of China’s DTV STB Regional Market in 2008Q1

North China, East China, South China, North-East China, Central China, North-West China, South-West China

Source: CCID Consulting, April, 2008

Q2 is STB’s sales busy reason. After CCBN, enterprises will acquire abundant orders, the shipment will improve. China’s STB sales volume will have rapid growth in 2008Q2.