Pay-TV ops purchased $15.3bln worth of set-top boxes in 2014 worldwide, down from $15.9bln in 2013, according to IHS. The decline represents the first contraction in the market since 2002. Shipments of pay-TV set-tops grew slightly in 2014 to 204.7mln units, an increase of just under 1% from 203.1mln units in the previous year, the research firm said. However, IHS said that the modest shipment growth “failed to compensate for the effects of price erosion in this highly competitive market.” It noted signs of increased set-top consolidation this year, including Arris ’ acquisition of Pace. The set-top market is expected to contract further this year, falling to $15.1bln and will continue falling to 13.2bln in 2018, before stabilizing in 2019, according to IHS.

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