Report: IPTV set-top boxes cooling off

Fri, 06/05/2009 - 9:20am
Mike Robuck

The market for IPTV set-top boxes is tapering off thanks to the downturn in the economy and the fact that many telcos already have the boxes in customers’ homes.

The IPTV set-top box market sizzled last year with a 55 percent growth rate, but research by In-Stat says that growth rate won’t be matched over the coming years.

“Established telco TV providers like France Telecom, AT&T, Free, British Telecom, Deutsche Telekom and China Telecom provided much of the subscriber growth that drives the demand for IP set-top boxes,” said Michelle Abraham, an In-Stat analyst. “We expect this situation to continue in 2009 and 2010. However, with few new deployments, unit shipments of IP set-top boxes will see only slight increases in 2009 and 2010.”

Recent research by In-Stat included:

  • Motorola held onto the top market share position in IP set-top boxes in 2008, but its market share slipped from 2007 as Cisco ramped up shipments.
  • More than 50 percent of 2009 IP set-top box unit shipments in Western Europe will have hard disk drives.
  • Among the key technology trends are improved power management, support for 3D graphics, multiple codecs and open software platforms.
  • The average bill of materials for an HD IP set-top box will fall below $50 in 2010.
  • Among the semiconductor competitors providing solutions for the IP set-top box market are Broadcom, CopperGate, Intel, NXP, Sigma Designs and STMicroelectronics.
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