Worldwide set-top box (STB) revenue totaled $5.62 billion in the third quarter of 2015 (3Q15), a sequential increase of 3 percent, with nearly all product categories showing improvement, according to the Set-Top Boxes report from IHS Inc. (NYSE: IHS).
“Net pay TV subscriber additions in North America and Western Europe continue to lag, reducing the need for pay TV providers to invest heavily in new set-top boxes. However, operators continue to update existing subscribers’ set-top boxes with increased functionality and performance to ensure they don’t churn,” said Daniel Simmons, director for connected home at IHS.
“Meanwhile, in the emerging set-top box market in India, parts of Latin America and Russia, operators are focusing on expanding their digital footprint at the lowest cost possible,” Simmons said.
3Q15 SET-TOP BOX MARKET HIGHLIGHTS
Growth in video gateways, clients and hybrid devices drove global cable set-top box (STB) revenue up 6 percent in in 3Q15, while satellite STB sales were 5 percent higher
IP boxes experienced a revenue dip of 12 percent in 3Q15 despite a rebound in the first half of the year
Arris finished Q3 as the worldwide set-top box revenue share leader, holding 10 percent of the market
Operators are increasingly looking to virtualize STB functions, and as a result there is growing demand for software and services, and STB vendors are focusing on incorporating virtualization into their products
STB REPORT SYNOPSIS
The quarterly IHS set-top boxes report tracks IP, cable, satellite and digital terrestrial (DTT) set-top boxes (STBs); over-the-top (OTT) media servers; and HDMI dongles, providing worldwide and regional market size, vendor market share, forecasts through 2019, analysis and trends. Vendors tracked: ADB, Apple, Arris, Changhong, Cisco, Coship, DVN, Echostar, Huawei, Humax, Jiuzhou, Kingvon, Netgem, Pace, Roku, Sagemcom, Samsung, Skyworth, Technicolor, ZTE, others.
With the 3Q15 edition of the STB report, IHS has completed the integration of the Infonetics STB service with the IHS STB Intelligence Service. This resulted in a revision of vendor data through rationalizing the two datasets and the creation of a new modelling process for estimating market size and vendor market share.