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STB market set for record growth in 2013

Posted: 16 Jul 2013     Print Version  Bookmark and Share

Keywords:IHS  STB market  pay-TV  IPTV  Ultra High Definition 

Global shipments of STBs for cable, satellite, terrestrial and IPTV digital TV services are forecast to climb to 26.90 crore units this year, up eight per cent from 25 crore in 2012, said IHS Inc. “This is despite the pay-TV industry’s increasing focus on delivering services to alternative devices such as PCs, smartphones and tablets.”

Shipments will grow another six per cent to 28.6 crore in 2014 and by one per cent to 29 crore in 2015, noted the market analytics firm.

“STBs are facing a mounting challenge to their role at the dominant pay TV video consumption device because of operators’ growing emphasis on supporting multiscreen devices,” said Daniel Simmons, senior principal analyst for TV technology at IHS. “However, operators are continuing to deploy STBs in order to manage the compatibility between their delivery networks and the consumer electronics devices that consumers are increasingly using to view content now. As pay-TV operators rush to accommodate changes in delivery platforms and in video formats—including the adoption of high definition (HD)—STB shipments will continue to rise, hitting record levels for the next few years.”

Reports of the STB’s imminent demise have been fueled by the increasing prominence of multiscreen devices. The multiscreen phenomenon will help boost the STB market during the next few years, as operators offer multimedia home gateway (MHG) STBs that can deliver services to PCs, smartphones, tablets and other devices, supporting the operator-as-an-app model.

Furthermore, in mature markets where pay-TV digitization is complete or nearly finished, the transition to HD and MHG STBs will help to sustain volumes and increase revenue in 2013, 2014 and 2015.

The gradual migration to HD is continuing, with 2014 expected to be the first year when more than 50 per cent of pay-TV boxes shipped globally can support HD, said IHS.

These developments will allow STB industry revenue to grow to Rs.1.21 lakh crore ($22.2 billion) in 2013, making it the most valuable year in the history of the market.

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