Economic Weakness Impacts Set-top Box Market in the Third Quarter, According to Dell'Oro Group

Wednesday, December 10th, 2008
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Motorola and Cisco IP Set-tops Help Offset Market Declines in Cable and Satellite

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 (STB) market contracted 2 percent sequentially in the third quarter of this year to $3.5 billion, due in large part by declines in both cable and satellite unit shipments. These declines were partially offset by strong unit shipments of IP STBs that increased over 30 percent sequentially. This growth in IP STBs is forecasted to continue through 2009, helping the overall set-top box market grow in single-digits next year to approximately $15 billion.

“The consequence of the recession on the set-top box market will likely be subdued growth as fewer consumers choose high-end services, like high definition and digital video recorder, and more choose basic services that come as part of a bundle,” commented Greg Collins, Vice President at Dell’Oro Group. “The economic difficulty and very tight credit markets will result in significantly less home construction and thus a smaller market opportunity for set-top boxes,” added Collins.

During the third quarter this year, Cisco’s IP STB unit shipments grew 85 percent sequentially, which accounted for over 20 percent of the worldwide market. Motorola remained the top vendor in IP STB unit shipments with almost 25 percent of the market.

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 Advanced Digital Broadcast (ADB), Amino, Cisco Systems, Echostar, Humax, Motorola, Pace plc, Samsung, Thomson, and UTStarcom (among others). To purchase this report, call Emily Kendall at +1.650.622.9400 x223 or email