Set-top Box market to peak in 2011

Pace overtakes Motorola in pay-TV set-top box (STB) market in 2Q11

CAMPBELL, CA — Market research firm Infonetics Research today released excerpts from its second quarter 2011 (2Q11) Cable, Satellite, IPTV, and OTT Set-Top Boxes and Subscribers market share and forecast report.

“The overall set-top box market held steady in the second quarter of 2011, with pockets of growth evident in all regions, particularly Central and Latin America. Pure IP STBs remain a bright spot with year-over-year global revenue growth at over 27%, as telcos are experiencing strong demand for their IP-based video services. Looking forward, early signs indicate a robust period of opportunity is imminent for the hybrid IP segment, particularly in the cable market, as hybrid IP STBs have the same capabilities as standalone over-the-top (OTT) players plus the added benefit of providing linear broadcast television programming,” expects Teresa Mastrangelo, directing analyst for video at Infonetics Research.

STB MARKET HIGHLIGHTS

• Despite sequential declines in cable, IPTV, and hybrid IP/DTT set-top box sales, the overall STB market held steady in 2Q11 at $3.45 billion, down less than a percent, thanks to healthy gains in the satellite STB segment
• Pace (LSE: PIC) overtook Motorola (NYSE: MMI) by a hair in overall STB revenue in 2Q11, attributed to the fact that it offers solutions across all market segments (telco, cable, and satellite operators)
• Cisco holds a commanding lead in both revenue and units for IP STBs, Motorola leads in cable STB revenue, and Skyworth Digital leads in cable STB unit shipments
• Cable and satellite STB shipments continue to contribute the largest portion of STB revenue due to their large installed customer bases and operators’ ongoing upgrades to support digital video, HD (high definition), DVR (digital video recording) and more interactive features
• With a strong STB upgrade cycle ebbing in North America and Europe, and with more consumers watching TV online via OTT media players (Apple TV, Roku Media Player, etc.) Infonetics expects the overall set-top box market to peak in 2011 followed by overall annual declines in the single digits through 2015 and beyond, despite healthy growth in IP and hybrid IP STBs

STB REPORT SYNOPSIS

Infonetics’ quarterly set-top box report provides market size, market share, analysis, and forecasts for IP STBs, cable STBs (digital and hybrid IP/QAM), satellite STBs (hybrid IP/DVB-S), hybrid IP/DTT STBs, DVR STBs, HD STBs, OTT media servers, and subscribers (pure and hybrid telco IPTV subscribers, analog and digital cable video subscribers, satellite video subscribers). Vendors tracked: Advanced Digital Broadcast (ADB), Amino, Cisco Systems, Coship, Dasan, DVN, Echostar, Humax, Huawei, Jiuzhou, Motorola, Netgem, Pace plc, Sagemcom, Samsung, Skyworth Digital, Sumitomo, Technicolor, ZTE, and others.