Home media gateways, which blend traditional linear TV with TV Everywhere services, will surpass 24 million units shipped by 2017, according to a recent study.
This year global unit shipments of home media gateway products are on track to reach nearly 10 million, which would top the 7.7 million units that shipped in 2012, according to a report by MRG.
“Unit shipments of home media gateway products are on track to grow rapidly,” said senior analyst Mike Paxton. “However, the product segment is currently just a small portion of the worldwide set-top box market. For example, in 2013 home media gateway product shipments are projected to account for just 4 percent of total set-top box unit shipments.”
On the revenue front MRG, which was acquired by SNL Kagan earlier this year, forecast that home media gateway products would increase from $2.3 billion last year to $3 billion by the end of 2013.
Home media gateways are also attractive to service provides because they include some of the traditional features of set-top boxes, including conditional access, home networking and TV tuning/
Currently, average sales prices for home media gateway products are around $300 per box, which to date have limited the penetration of home media gateways to the high-income household regions of the world. Through 2015, MRG said that virtually all of the home media gateway product deployments would be confined to North America and Europe.
Headed gateways currently account for the lion’s share of home media gateway unit shipments. In 2013, only 2 percent of global unit shipments are projected to be “headless” home media gateways.