The demand for interactive and personalized TV will push annual worldwide set-top box shipments over 200 million by 2013, as providers overhaul their current base with next-generation models, according to Parks Associates.

The research firm’s latest report "Set-Top Boxes: Outlook" predicts the global digital transition and new distribution channels like DTT, IPTV and over-the-top (OTT) video will intensify competition in the TV service market. Carriers and manufacturers looking for a competitive advantage will replace their current installed base of set-tops with advanced models capable of supporting applications such as time- and place-shifting and Internet-based offerings.

"Consumers are attracted to the concept of connected CE, with one-third of U.S. broadband households very interested in a set-top box that connects to their PC and Internet service as well as their TV," said Jayant Dasari, research analyst, Parks Associates, in a prepared statement. "While less than ten percent are willing to pay a monthly fee, demand is still on an upward trend, especially as the set-top connects to more services."

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