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Worldwide Digital TV Set-Top Box Upside

Worldwide sales of digital TV set-top boxes broke through the 100 million barrier for the first time in 2007, according to the latest research from the Strategy Analytics Connected Home Devices service.

The market study found that sales reached 102.4 million units last year, an annual increase of 12 percent. IPTV's market share rose to 5.9 percent, compared to 3.6 percent in 2006.

Cable's share also rose, to 36.2 percent, while satellite and terrestrial shares declined. For 2008 the report predicts a surge in demand for digital terrestrial set-top boxes, driven by the impending switch-off of analog broadcasting in the U.S. market.

By 2012 annual global sales of all digital TV set-top boxes will reach nearly 200 million units.

"We expect the Asia-Pacific region to overtake North America and Europe in 2008, accounting for a third of this year's 129 million sales," says Peter King, Director, Connected Home Devices. "Sales of digital terrestrial TV boxes in Europe have now plateaued, as consumers begin to transition to integrated digital TV sets, but this pattern is unlikely to prevent overall market growth across all platforms."

"The set-top box remains the key gateway to advanced digital television services around the world," says David Mercer, Principal Analyst. "Added value services such as high definition TV, digital video recording and Internet video are all set to drive further growth in this strategically important sector."

The report provides Strategy Analytics' latest global market forecast for digital TV set-top boxes, based on analysis of more than 200 digital television platforms and operators around the world. It includes 5-year demand forecasts for 22 countries across the principal geographies, and segmentation by the major access platforms DTTV, IPTV, satellite and cable.

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