Set top boxes tune into big sales

The market for set top boxes is set to explode, according to a recent report..

Researchers from Futuresource Computing say that the incoming wave of entertainment services plays perfectly into the hands of the makers of set top box (STB) units.

"Pay-TV operators around the world continue to use STBs to drive digital services, increase average revenue per user and reduce subscriber churn with innovations such as high definition, personal video recording, video on demand and home networking," said analyst Carl Hibbert,

The uptake of premium services combined with growing demand for cable and satellite TV systems in developing countries has lead Futuresource to predict that shipments for set-top boxes will increase by some 40 per cent over the next four years.

The growth in sales, however, may come as the number of companies in the market shrinks. Analysts predict that as the market matures, the largest vendors will inevitably take over.

"The next five years will see further consolidation in the STB industry, with smaller vendors being absorbed or pushed out, especially as China’s major OEMs and brands increase their drive on export markets," predicted Hibbert.

"In a commoditising market, the long haul survivors will be the ones with solid account relationships, competitive economies of scale and/or unique competencies in software or end-to-end network solutions."

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