2014/03/19 Video gateways a bright spot in slumping STB market

 Campbell, CALIFORNIA, March 14, 2014—Market research firm Infonetics Research released excerpts from its 4th quarter 2013 (4Q13) and year-end Set-Top Boxes and Pay TV Subscribers report, which tracks IP, cable, satellite, and digital terrestrial (DTT) set-top boxes (STBs), and over-the-top (OTT) media servers.

ANALYST NOTE

“The overall set-top box (STB) market declined in 2013, but cable and satellite video gateways had a very strong year, with shipments growing 333% and 98%, respectively,” says Jeff Heynen, principal analyst for broadband access and pay TV at Infonetics Research.

Heynen continues: “Video gateways collapse the STB and broadband CPE into a single device, and it’s for this reason we expect to see a long-term shift to these devices, at least in North America, to reduce capex in multiple TV set homes.”

SET-TOP BOX MARKET HIGHLIGHTS

• The global set-top box (STB) market—including IP/cable/satellite/DTT STBs and OTT media servers—totaled $18 billion in 2013, a decline of 10% from the previous year
• Pace closed out 2013 as the worldwide STB revenue and unit share leader, though Arris claimed the revenue share lead in 4Q13
• Cisco, on the strength of its telco IP STB sales, finished 2nd in STB revenue in 2013
• The use of OTT media servers is growing, not only for consumer multimedia use in the home, but also for service providers delivering pay-TV services as an app over a broadband connection
• Infonetics expects global IP video gateway revenue to grow at a 79% compound annual growth rate (CAGR) from 2013 to 2018