Set-top box market nears $5BN in Q2 2014 | News | Rapid TV News
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The death of the set-top box (STB), as predicted by some, maybe somewhat exaggerated according to a report from Infonetics Research.

Released excerpts from its 2nd quarter 2014 (2Q14) Set-Top Boxes and Pay-TV Subscribers report, the research firm found that globally, set-top box (STB) revenue — including IP, cable, satellite, and DTT STBs and OTT media servers — rose 4% in 2Q14 from 1Q14, to $4.8 billion. Unit shipments grew 7% sequentially in 2Q14, but were down 3% from a year ago.

Examining how the different segments of the market performed, the analyst found that cable STB revenue increased by 3% sequentially in 2Q14, and unit shipments grew 4% during this same period. Worldwide STB market share leader ARRIS gained almost two share percentage points in 2Q14 over 1Q14.

The survey also found that over-the-top (OTT) media servers were quickly becoming the STB of choice for pay-TV providers in emerging markets such as China, where free video content is abundant and service providers are looking to bundle live streaming video with their own broadband offerings.

"The global set-top box (STB) market is in a fascinating period of mixed signals. While quarterly unit shipments are up, on a year-over-year basis shipments are down," noted Infonetics principal analyst for broadband access and pay-TV Jeff Heynen. "And though nearly all STB product categories saw volume increases in 2Q14, satellite shipments continue a downward trend, while cable set-tops are growing due to an on-going refresh cycle in North America and Europe."

Looking to the long-term, the analyst predicts that the worldwide STB market will grow at a -0.05% compound annual growth rate (CAGR) from 2013 to 2018, when it will total $19.2 billion. By this time, Infonetics expects satellite STBs to contribute the majority of STB revenue at 36%.