Digital TV set-top box sales to soar

Sales of digital TV set-top boxes will soar by 39% to a record 50.3 million units in 2004, according to the latest research from the Strategy Analytics Broadband Device Strategies service.

  • E-Mail
By  Vijaya Cherian Published  December 23, 2003

Sales of digital TV set-top boxes will soar by 39% to a record 50.3 million units in 2004, according to the latest research from the Strategy Analytics Broadband Device Strategies service.

This follows the recovery in demand seen during 2003, when sales will reach 36 million units, an increase of 28%. To achieve success in 2004, manufacturers need to target key growth areas such as satellite in Europe and cable in Asia-Pacific, the analysts say. Strong demand for digital satellite systems in the US and Europe, as well as the revival of the digital terrestrial market in Europe, were responsible for the recovery in set-top box sales during 2003.

Prices continue to fall at around 12% a year, with the average set-top box now costing just over $200 at retail level. Increasing demand for higher value Digital Video Recorders and HDTV will help counteract the trend towards cheaper, entry-level devices.

"Manufacturers must develop clear strategies to deal with increased market fragmentation," says Peter King, service director at Strategy Analytics. "Some will benefit from concentrating on the low end zapper segment, but others should tap into the growing market for Digital Video Recorders and HDTV." Satellite boxes currently dominate the market, with 61% of sales. By 2008, however, cable is expected to become the leading digital platform, with a whopping 47% share, followed by satellite with 37% and terrestrial with 10%.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code