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IPTV Set-Top Box Bonanza for Vendors

The IP set-top box market almost doubled in 2007 as more boxes were needed to supply new subscribers that telcos added to their TV services, according to the latest market study from In-Stat.

North America was one of the fastest growing regions, as AT&T ramped up the pace of installations throughout the year, the high-tech market research firm says. The impact of these subscribers on the set top market was enhanced due to the fact that most North American subscribers need multiple boxes.

"IP set-top box hardware features are now stable, with the exception of the integration of home-networking technologies," says Michelle Abraham, In-Stat analyst. "New features will come in software, rather than hardware, in the future."

The research covers the worldwide market for IPTV set-top boxes. It includes worldwide five-year unit shipment, ASP, and revenue forecasts through 2012 for IP set-top boxes divided into six geographic regions: North America, Latin America, Western Europe, Eastern Europe, Middle East-Africa, and Asia-Pacific.

Five-year forecasts are also provided for IP set-top boxes with specific features like DVR, HD, and digital TV tuners, which are also divided into the aforementioned geographic regions. Profiles of major vendors are included.

Recent research by In-Stat found the following:

- The IP set-top box market grew to over 8 million units in 2007.

- Falling box prices will cause annual IP set-top box revenues to remain about $2 billion once they reach that level in the future.

- Home-networking technologies are being integrated into IP set top boxes on a deal-by-deal basis.

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