Skip to main content

Digital Hybrid STB Market to Quadruple by 2014

With Internet Protocol (IP) connectivity becoming a standard feature in most consumer electronics (CE) devices with a screen, the television and associated media industries -- in particular,  the incumbent pay-TV service providers -- are attempting to fully understand the disruptive impact on their core business.

Hybrid set-top boxes (STB), that utilize both broadcast and broadband connectivity, could be vital tools that enable network broadcasters and pay-TV service operators to compete with low-cost high-value over-the-top (OTT) video offerings, such as Netflix and LOVEFiLM, according to the latest market study by In-Stat.

"When Apple began supporting applications on their Apple iPhone, a whole new industry was created with about half a million apps now available worldwide," says Gerry Kaufhold, Principal Analyst.

Now, with a multitude of connected TV devices moving into the market, Internet Video is becoming the new must-have service. TV programs may eventually become apps themselves to provide a direct-to-consumer engagement with titles, brands and ultimately with advertisers.

However, a more likely scenario, hybrid STBs could also be used to totally by-pass the incumbent pay-TV distributors, as some major content producers discover that they could use their established brand awareness to go directly to consumers with OTT video offerings -- at potentially much higher profit margins.

In-Stat's market research findings include:

- Western Europe will be the world's hotbed for development of hybrid applications and services with over 70 companies joining the Hybrid Broadcast Broadband initiative.

- Digital Terrestrial Hybrid STBs will more than quadruple in volume from 2010 to 2014.

- Over 2.7 million Hybrid STBs will be in use in Eastern Europe by 2014.

Popular posts from this blog

The AI Application Integration Challenge

Artificial intelligence (AI) has rapidly become the defining force in business technology development, but integrating AI into applications remains a formidable challenge. According to a recent Gartner survey, 77 percent of engineering leaders identify AI integration in apps as a major hurdle for their organizations. As demand for AI-powered solutions accelerates across every industry, understanding the tools, the barriers, and the opportunities is essential for business and technology leaders seeking to evolve. The Gartner survey highlights a key trend: while AI’s potential is widely recognized, the path to useful integration is anything but straightforward. IT leaders cite complexities in embedding AI models into existing software, managing data pipelines, ensuring security, and maintaining compliance as persistent obstacles. These challenges are compounded by a shortage of skilled AI engineers and the rapid evolution of AI technologies, which can outpace organizational readiness and...