IP and Satellite Set-top Box Sales Fuel Market in the Second Quarter, According to Dell'Oro Group

Cable Set-top Box Market Retreats

REDWOOD CITY, Calif. — Dell’Oro Group, the trusted source for market information about the networking and telecommunications industries, reported that the worldwide set-top box market grew 45 percent in the second quarter of this year over the same period a year ago, due in large part to strong sales of IP and satellite set-top boxes. Compared with the first quarter of this year, sales of satellite and IP set-top boxes grew 16 percent and 31 percent, respectively.

The cable segment declined in the second quarter, with the largest decline coming from the low-end of the cable market, which includes standard definition boxes and those without DVRs.

“We believe the first quarter of this year was exceptionally strong for the low-end of the cable market due to the July 1st deadline for the FCC’s 707 mandate requiring that set-top boxes contain separate security modules that will enable cable customers to access services legally via third-party device,” said Greg Collins, Vice President at Dell’Oro Group. “As a result, cable operators began earlier this year to buy out the production runs of legacy boxes, which are about $50 less per unit than the newer boxes, in order to install as many legacy units as possible before deadline. Consequently, we expect that cable set-top box sales will be muted in the second half of this year,” Collins added.

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 Amino, Cisco, Humax, Motorola, Pace, Philips, Samsung, and Thomson (among others). To purchase this report, call Margaret Miles at +1.650.622.9400 x225 or email Margaret@DellOro.com.