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Cable Technology Feature Article

September 10, 2009

Set-top Box Revenues Decline 2 Percent in 2Q2009, Says Dell'Oro Group

By Calvin Azuri, TMCnet Contributor

The recently-released Dell’Oro Group “Set-top Box Quarterly Report” reveals that the strength in the satellite and IP set-top box (STB) markets could not offset a contraction in the cable market that caused the overall STB market to decline 2 percent during the second quarter.

Dell’ (News - Alert)Oro Group provides in-depth, objective research and analysis that enables component manufacturers, equipment vendors, and investment firms to make fact-based, strategic decisions.
The cable market dominated by North America is going through a correction phase at present. This comes after two years of increases fueled primarily by the United States Federal Communications Commission’s separable security mandate and the increased distribution of lower-end products by cable MSOs looking to convert analog and terrestrial broadcast consumers to low-end digital cable services.
In a release, Greg Collins, vice president at Dell’Oro Group, said both cable and satellite operators in North America are experiencing increased competition from telecom/IP operators. They are also suffering from a poor economic environment, in which consumers have been reducing purchases of premium channel and video-on-demand services.
The market for cable STBs still remains a virtual duopoly between Motorola and Cisco (News - Alert). The two companies accounted for 68 percent of worldwide cable STB unit shipments and 96 percent in North America in the second quarter. The report indicates that it is unclear if this reigning duopoly can be broken as a number of STB vendors begin competing more actively in North America via tru2way devices.
The Dell’Oro Group Set-top Box Quarterly Report offers complete, in-depth coverage of the market with worldwide and regional tables covering manufacturers’ revenue, units shipped, and average selling prices for cable, satellite, IP set-top boxes and standalone digital video recorders (DVRs). The report also tracks performance of key vendors like ADB, Cisco, Echostar, Motorola, Samsung, Thomson (News - Alert), and UTStarcom.
The report further segments standard, standard w/DVR, High Definition, High Definition with DVR markets in detail and tracks markets by region, namely North America, EMEA, Asia-Pacific and rest of world. In addition, it tracks IPTV (News - Alert) Quarter-ending subscribers, IPTV subscriber net additions and select video game console unit shipments. Dell’Oro Group provides detailed quantitative information on revenues, port and/or unit shipments, and average selling prices to enable customers to keep abreast of current market conditions and take advantage of future market trends.

Calvin Azuri is a contributing editor for TMCnet. To read more of Calvin’s articles, please visit his columnist page.

Edited by Patrick Barnard