Weak Cable Set-top Box Sales Cause Third Quarter Contraction

Tuesday, December 11th, 2007

Satellite and IPTV Set-top Box Markets Continue to Grow

Redwood City, Calif. — Dell’Oro Group, the trusted source for market information about the networking and telecommunications industries, reported today that the worldwide set-top box market contracted 2 percent on a sequential basis in the third quarter of this year, despite strong growth in the IPTV and satellite set-top box market that was not enough to offset the decline in the cable market.

“Cable operators slowed their acquisition of set-top boxes in the third quarter after having accelerated purchases of mostly standard definition set-tops in the first half of 2007 when they were striving to convert analog subscribers to digital services before the FCC’s July 1st deadline that required that set-top boxes contain separate security modules,” commented Greg Collins, Vice President at Dell’Oro Group. “Because cable operators increased their purchases of set-tops ahead of demand, thereby building inventory, they had much less of a need to purchase new set-tops in 3Q07,” added Collins.

The report indicates that satellite set-top box market revenues grew faster than unit shipments in the third quarter as consumers continued to focus on high definition and DVR products and services. The IPTV set-top market grew in the mid-teens on a sequential basis on both a revenue and unit shipment perspective during the third quarter as well.

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 Systems, Humax, Motorola, Pace, Philips, Samsung, and Thomson (among others). To purchase this report, call Margaret Miles at +1.650.622.9400 x225 or email [email protected]