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The Marketing Minute: Cracking the Code of Technical Marketing
Pricing Pressure Drags on TV Set-Top Box Market
August 3, 2015 | IHSEstimated reading time: 2 minutes
IHS today reported that unit shipments of set-top boxes (STBs) worldwide improved 2 percent sequentially in the first quarter of 2015 (1Q15), and were up 3 percent from the year-ago first quarter, according to the IHS Infonetics Set-Top Boxes report.
“We expect unit shipments of set-top boxes to improve in 2015, but price competition for higher-end devices and growth among less expensive boxes for emerging markets will bring revenue down for the year,” said Jeff Heynen, research director for broadband access and pay TV at IHS.
IHS expects particularly strong unit growth for High Definition Multimedia Interface (HDMI) dongles, which allow viewers to stream online movies, music, games, photos and apps to a TV using a smartphone, tablet or laptop. HDMI dongles, such as Google’s Chromecast, Roku HDMI sticks, Amazon’s Fire TV Stick HDTV, and virtual set-top boxes, will see the highest unit growth of all the digital media adapters tracked by IHS, and could siphon away business from over-the-top (OTT) servers.
Set-Top Box Market Highlights
- The global set-top box (STB) market—including IP/cable/satellite/DTT STBs, OTT media servers, and HDMI dongles—totaled $4.2 billion in 1Q15, slipping 3 percent from 4Q14
- IHS expects the number of HDMI dongles sold worldwide to top 27 million by 2019
- Cable STB sales fell 2 percent worldwide in 1Q15, to $1.5 billion, as declines in traditional digital boxes, media players and client devices offset gains in headed gateways and hybrid IP/QAM devices
- A slowdown of sales in North America was to blame for global satellite set-top box revenue being down 3 percent in 1Q15 from the prior quarter
- Arris claimed the worldwide STB revenue market share lead in 1Q15, and is far and away North America’s leading STB supplier to cable operators
STB REPORT SYNOPSIS
The quarterly IHS Infonetics Set-Top Boxes market share and forecast report tracks IP, cable, satellite and digital terrestrial (DTT) set-top boxes (STBs); over-the-top (OTT) media servers; and HDMI dongles. The research service provides worldwide and regional market size, vendor market share, forecasts through 2019, analysis and trends. Vendors tracked include ADB, Apple, Arris, Changhong, Cisco, Coship, DVN, Echostar, Huawei, Humax, Jiuzhou, Kingvon, Netgem, Pace, Roku, Sagemcom, Samsung, Skyworth Digital, Technicolor, ZTE and others. To purchase the report, please visit www.infonetics.com/contact.asp.
About IHS
IHS is the leading source of insight, analytics and expertise in critical areas that shape today’s business landscape. Businesses and governments in more than 150 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs about 8,800 people in 32 countries around the world.
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