Increased content demand to drive 4K STB revs way up | Media Analysis | Business
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Increasing demand for Ultra HD content and surging sales of compatible 4K TVs and display devices will send the global 4K set-top box (STB) market up to reach $3.65 billion by 2024.

4k stbThis is the key finding of a new report by Grand View Research which also revealed that content providers have begun offering sharper and immersive video content to the consumers on account of significant breakthroughs in the 4K technology.

Increasing number of UHD content providers is expected to propel industry growth and is presumed to strengthen the industry’s growth prospects. However, high initial and up gradation costs, along with high subscription fees for 4K content is expected to challenge the industry growth over the forecast period.

A large-scale penetration of smart TVs meanwhile has proved to be instrumental in escalating the demand for sophisticated STBs. Industry vendors have leveraged on providing STBs with enhanced broadcast capabilities on Digital Video Broadcasting-Satellite (DVB-S/DVB-S2) standards.

IPTV UHD set-top boxes contributed more than 20% of the market revenue in 2014, and are anticipated to witness significant growth over the next eight years. Hybrid STB devices are expected to witness a substantial CAGR of more than 5% throughout the forecast period. They enable smart TV programming and help viewers to access multiple TV delivery methods including cable, terrestrial, satellite and the internet. In addition, they include services such as video on demand, time-shifting TV, Internet applications and gaming applications.

Projected to grow at a CAGR of over 3% from 2016 to 2024, the North America UHD set-top box is expected to witness steady growth over the forecast period. STB hardware vendors are extensively focusing on providing UHD STBs with add-on features such as HDMI 2.0 multimedia interface and USB ports for playing media from external memory devices.

The Asia Pacific market accounted for over 25% of the global revenue share in 2014 and is presumed to witness significant growth over the forecast period. China and India are expected to incorporate considerable opportunities for regional industry growth, due to the strong presence of UHD STB manufacturers.

The report noted that OTT-based streaming devices are also becoming the STB of choice for satellite TV providers in emerging markets such as China and India, where open-source content is abundant. The regional STB service providers harness the lucrative growth prospects by offering packages with live streaming video along with their own broadband offerings.

Leichtman Research Group (LRG), meanwhile, said that pay-TV subscribers tended to express little enmity toward STBs. A fifth of those with a pay-TV HD STB said that set-top boxes from TV companies were a waste of money, while 44% disagreed. Just over two-fifths of those with a pay-TV HD set-top box agreed that STBs from TV companies provide features that add value to the TV service, while only 16% disagreed.