Weak Q3 cable set-top box sales counteract growth in IPTV and satellite sectors

December 12, 2007 – The global set-top box (STB) market contracted 2% in the third quarter of this year relative to the previous quarter, according to a report by market research firm Dell’Oro Group, despite strong growth in the IPTV and satellite market that was not sufficient to offset the decline in the cable market.

The report found that satellite STB revenues grew at a higher rate than shipments in the third quarter of this year, as consumers increasingly sought STBs capable of receiving high-definition signals and offering digital video recorder (DVR) functionality.  The IPTV STB market was found to have grown in the mid teens in the third quarter of this year relative to the previous quarter, in terms of both revenue and unit shipments.

Greg Collins, Vice President of Dell’Oro Group, commented: “Cable operators slowed their acquisition of set-top boxes in the third quarter after having accelerated purchases of mostly standard-definition set-tops in the first half of 2007 when they were striving to convert analogue subscribers to digital services before the FCC’s July 1st deadline that required set-top boxes contain separate security modules.  Because cable operators increased their purchases of set-tops ahead of demand, thereby building inventory, they had much less of a need to purchase new set-tops in 3Q07.”