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Satellite TV Set-Top Box Shipments Decline

Dell'Oro Group reported that the worldwide set-top box market contracted 6 percent sequentially to $3.5 billion in the first quarter of this year.

The market was up 9 percent, however, compared to the year-ago quarter. The quarter's sequential decline was due to double-digit percent drop in the satellite set-top box (STB) market, which reflected seasonal weakness.

The market for pay-TV services continues to see strong growth and competition, and these factors will continue to translate into healthy STB sales which are boosted by increasing volumes and average selling prices.

Prices continue to rise as high definition (HD)and digital video recorder (DVR) functionality becomes a higher percentage of the overall product mix.

In 1Q08, HD shipments for the first time surpassed standard definition shipments as consumers are increasingly choosing HD services and service providers are deploying HD capable set-tops ahead of demand.

Echostar, which was recently spun off from Dish Network, edged out Thomson in the first quarter for the top position in terms of unit shipments. Seasonality also impacted the results of the combined Pace and Philips market share, according to the report.

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