Skip to main content

Satellite Pay-TV Set Top Box Shipments Decline

Satellite pay-TV providers in North America haven't added many new subscribers. Competition for subscribers has been an issue, and the fundamental value of all pay-TV services is being questioned by prospective customers.

In particular, the U.S. market for video entertainment has also evolved -- due to the rapidly growing adoption of low-cost on-demand over-the-top (OTT) video services.

In Europe, the market has less need for set-top boxes, because more TV sets have integrated satellite tuners and CI+ slots. As a result, according to the latest market study by In-Stat, shipments of satellite set-top boxes declined in 2010 by 8 percent -- in both the North American and Western European.

"The decline in North America shipments moving forward will be a result of a movement to residential media servers, first by DirecTV, and then by other providers," says Michelle Abraham, Principal Analyst at In-Stat.

The move to IP video clients will impact Europe as well, though multi-room penetration is much lower, so the impact on shipments will be lower.

Markets like Latin America and the Mid-East/Africa regions will see the highest growth percentages as rising household incomes and lower cost pay-TV packages will enable more satellite pay-TV subscriber growth in those markets.

In-Stat's latest market study findings include:

- Saturation in some satellite markets will result in a stall in satellite set-top box unit shipments for the pay-TV market.

- The switch from connecting a satellite set-top box to every TV for satellite viewing to using IP clients will impact the satellite box market.

- HD and DVR boxes continue to gain at the expense of SD boxes.

- Both Colombia and Argentina plan to launch satellite services to complete their DTT coverage.

- The worldwide satellite HD box forecast shows growth each year through 2014 with the exception of 2011 as a result of DirecTV's use of IP set-top boxes.

Popular posts from this blog

Retail Supply Chains Enter the AI Age

Retailers are forging ahead in adopting artificial intelligence (AI) tools to master the increasingly complex world of supply chain management. According to the latest ABI Research market study, more than 90 percent of global retailers are deploying AI to bolster decision-making and optimize operations. This movement underscores a pivotal transformation: retail supply chains evolve from static cost centers into intelligent systems capable of real-time adaptation. Driven by pressures from fulfillment complexity, labor challenges, and rising customer expectations, AI now sits at the heart of next-generation retail strategy. Retail Supply Chain Market Development Traditionally, retailers have struggled to balance speed, cost efficiency, and customer satisfaction. Now, the combined forces of e-commerce growth and ongoing geopolitical disruptions have amplified this challenge. Warehouse congestion, longer lead times, and volatile demand forecasts have underscored the need for predictive and...