According to ABI Research report "Global Set-Top Box Markets Forecast Update," shipments of set-top boxes are expected to peak this year, at least in mature markets, and then commence a gradual decline. However, the rolling series of analog TV shutoffs in countries around the world, combined with the strong uptake of HDTV sets, indicate that HD set-tops will form a growing fraction of the total market. HD set-tops are expected to account for about 30 percent of all set-top shipments as soon as 2010.

This is accompanied by a progressive movement from MPEG-2 to MPEG-4 for content delivery. In a statement, ABI Research industry analyst Michael Inouye said: "Closely related to MPEG-4 is a growing affinity for HD boxes over SD. As more HDTVs find their way into homes, the demand for HD content grows in kind. Anticipating this demand, some countries and operators have elected to support the more efficient standard up front or to begin deployments of upgraded CPE. The price points of boxes are converging; MPEG-4 and in some cases HD are getting sufficiently inexpensive that some operators will be providing them to their customers by default."

Some set-top vendors feel that demand for standard models will be around for a long time, but some of the infrastructure vendors report seeing a push towards MPEG-4 encoders. So vendors will have to support MPEG-4. In markets primarily served by digital terrestrial broadcasts where most sales of set-tops are retail, especially those with a large MPEG-2 installed base, this suggests that vendors may have to encourage consumers to switch by reducing the prices of upgraded boxes.

The Daily

Subscribe
Thursday–June 17

Industry Kicks off ‘Go Addressable’ Initiative

Distributors and TV brands came together Thursday in support of an industry initiative to accelerate efforts to make it easier for advertisers to incorporate addressable TV into their campaigns. Participants

Read the Full Issue
The Skinny is delivered on Tuesday and focuses on the cable profession. You'll stay in the know on the headlines, topics and special issues you value most. Sign Up

Calendar

Jul 16
Diversity List – 2021 Nominations Due: July 16, 2021
Sep 10
Most Powerful Women – 2021 Nominations Due: Sept 10, 2021
Dec 7
Most Powerful Women CelebrationSave the Date!
Full Calendar

Jobs

Seeking an INDUSTRY JOB?
VIEW JOBS

Hiring? In conjunction with our sister brand, Cynopsis, we are offering hiring managers a deep pool of media-savvy, skilled candidates at a range of experience levels and sectors, The result will be an even more robust industry job board, to help both employers and job seekers.

Contact John@cynopsis.com for more information.