Gains in Asia and Latin America STB markets won’t offset declines in N. America, W. Europe

Thursday, October 31st, 2013 
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CAMPBELL, Calif. — Market research firm Infonetics Research released excerpts from its 2nd quarter 2013 (2Q13) Set-Top Boxes and Pay TV Subscribers market share and forecast report, which tracks IP, cable, satellite, and digital terrestrial (DTT) set-top boxes (STBs) and over-the-top (OTT) media servers.

ANALYST NOTE

Pace, Cisco, ARRIS, Echostar, Other“The STB market is in the midst of a series of significant technology shifts, and these changes are resulting in ebbs and flows in shipments on a global basis, with individual markets swinging each quarter’s performance,” notes Jeff Heynen, principal analyst for broadband access and pay TV at Infonetics Research. “There are real unit shipment declines occurring in North America and Western Europe that won’t be offset by growth in Asia Pacific and Latin America until 2014.”

Continues Heynen: “We’re seeing the market bifurcate along geographic lines. We have a post-STB market, which includes North America and Western Europe, where operators are having a difficult time adding new pay TV subscribers and are responding by transitioning to video gateways. And then there’s the emerging STB market in China, India, and Latin America, where digitization projects are underway.”

SET-TOP BOX MARKET HIGHLIGHTS

  • Worldwide set-top box revenue (IP/cable/satellite/DTT STBs and OTT media servers) totaled $4.3 billion in 2Q13, down 3% from 1Q13, and down 9% from the year-ago 2nd quarter
  • In 2Q13, cable STB revenue declined 14% sequentially while unit shipments were flat, reflecting an increasingly heavier mix of single-tuner standard-definition boxes for emerging markets
  • Pace is the global STB revenue share leader in 2Q13, overtaking Cisco, whose revenue fell sharply quarter-over-quarter
  • Arris soared into the #3 spot, bolstered by its acquisition of the Motorola Home division earlier this year

STB REPORT SYNOPSIS

Infonetics’ quarterly STB report provides worldwide and regional market size, vendor market share, forecasts through 2017, analysis, and trends for IP STBs; cable and satellite STBs (digital, hybrid, video gateways, media players); hybrid IP/DTT STBs; and OTT media servers. The report also tracks telco IPTV and cable and satellite video subscribers. Vendors tracked: Advanced Digital Broadcast (ADB), Apple, Arris Group, Changhong, Cisco Systems, Coship, DVN, Echostar, Huawei, Humax, Jiuzhou, Kingvon, Netgem, Pace plc, Sagemcom, Samsung, Skyworth Digital, Technicolor, ZTE, and others.