Set-top Box Revenues Contract Slightly in the Second Quarter of 2009

Wednesday, September 9th, 2009
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Motorola and Cisco Retain Grip on Cable STB Market

REDWOOD CITY, Calif. — Dell’Oro Group, the trusted source for market information about the networking and telecommunications industries, reported today that strength in the satellite and IP set-top box (STB) markets could not offset a contraction in the cable market that caused the overall STB market to decline 2 percent during the second quarter. The cable market, dominated by North America, is in the midst of a correction after two years of increases fueled primarily by: (1) United States Federal Communications Commission’s separable security mandate and (2) increased distribution of lower-end products by cable MSOs wanting to convert analog and terrestrial broadcast consumers to low-end digital cable services.

“Although the cable market took the brunt during the quarter, both cable and satellite operators in North America are experiencing increased competition from telecom/IP operators, as well as suffering from a poor economic environment, in which consumers have been trimming purchases of premium channel and video-on-demand services,” said Greg Collins, Vice President at Dell’Oro Group.

The market for cable STBs remains a virtual duopoly between Motorola and Cisco. During the second quarter, the two companies accounted for 68 percent of worldwide cable STB unit shipments and 96 percent in North America. The report indicates that it is unclear if this reigning duopoly can be broken as a number of STB vendors begin competing more actively in North America via tru2way devices.

About the Report

The Dell’Oro Group Set-top Box Quarterly Report offers complete, in-depth coverage of the market with worldwide and regional tables covering manufacturers’ revenue, units shipped, and average selling prices for cable, satellite, IP set-top boxes and standalone digital video recorders (DVRs). The report tracks performance of key vendors, including Advanced Digital Broadcast (ADB), Amino, Cisco Systems, Echostar, Humax, Motorola, Pace plc, Samsung, Thomson, and UTStarcom (among others). To purchase this report, call Emily Kendall at +1.650.622.9400 x223 or email Emily@DellOro.com.