Pace overtakes Motorola in pay-TV STB market in Q2 2011

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 percent, as telcos are
experiencing strong demand for their IP-based video services.



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, according to Infonetics Research.



Paceovertook Motorola 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).



Ciscoholds 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.


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,” said Teresa Mastrangelo, directing analyst for video at
Infonetics Research.

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.



By Team
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