UK - Set Top Box sales increasing

Volume sales of Set Top Boxes grew to 4.9 million in the year ending April 2008 in the UK, increasing from 4.1 million the previous year. Value sales also grew significantly from £169.1 million to £172.9 million over the same period according to GfK Retail and Technology.

The largest sub-sector within this product area, Digital Set Top Boxes without a Hard Disc Drive, grew to 4.3 million units in the year ending April 2008 – a 17.8% increase when compared to the previous year. Over the same period, average prices of these devices have fallen from £31 to £24 and this has inevitably exerted downward pressure on value sales, which fell from £155.7 million to £104.9 million.

Indeed, the sub £20 category continues to grow and this sector accounted for 58.8% of total sales volumes in April 2008, compared to just 26.4% during the same period last year.

Mass Merchandisers have continued to increase their influence within this sector and in doing so have fuelled the already buoyant consumer demand for entry level products that are competitively priced.

Digital Set Top Boxes with a Hard Disc Drive (or DTRs) experienced strong growth in the year ending April 2008. Volume sales grew to 473 thousand units whilst value sales grew to £50.5 million. When compared to the year ending April 2007, these figures represented increases of 90.7% and 44.2% respectively.

Looking ahead, the run up to the digital switchover should help to catalyse sales of Set Top Boxes and given the popularity of smaller LCD TVs for use in the kitchen and bedroom, many of which do not feature a digital tuner, the need for a secondary Set Top Box within the home will also help strengthen sales.