HDTV, personal video recording demand driving consumer set-top box

August 14, 2007

The market for set-top boxes (STBs) will grow at a steady pace through the end of the decade before easing slightly, as service upgrades to existing pay-TV customers are completed and the market shifts from new-technology growth to growth driven by the addition of new pay-TV subscribers.

According to a new study from ABI Research, three main drivers will propel this market in the coming years: advanced features, the new interactivity offered by hybrid STBs and the possible development of a retail set-top box market.

The study, “Worldwide Set-Top Box Analysis,” finds that accelerating sales of HDTV sets and the popularity of PVR functions are combining to spark customer demand for STBs supporting these advanced features. This will create a temporary market for upgraded boxes. Beginning in 2010, however, many existing customers will have completed their upgrades, and demand will begin to decline.

Over the next few years, STBs that can provide content using more than one platform will become increasingly popular and will begin to replace single-platform STBs in many markets, according to ABI Research.

For more information, visit: www.abiresearch.com.

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