Skip to main content

Upside for the Smart Set-Top Box and Dongle Market

No to be confused with the typical 'dumb' set-top box devices used by the legacy pay-TV sector, innovative new devices are being introduced into the global streaming video entertainment marketplace. Creative hardware design and imaginative software user experience enhancements will transform this product category.

According to the latest market study by ABI Research, the smart set-top box and dongle market is expected to pass 18 million units in 2013 -- that's higher than originally forecast, due to the arrival of the Google Chromecast.

Overall the market is expected to grow with a 10.8 percent CAGR (from 2013 to 2018) with less saturated and developing -- from a new product perspective -- markets like Asia-Pacific and Latin America helping drive this growth.

"Despite stiff competition from a range of connected consumer electronics (CE) devices, the smart set-top box and dongle market offers an equally compelling user experience often at significantly lower price points" said Michael Inouye, senior analyst at ABI Research.

Google’s Chromecast device in particular sets a new low price bar for the connected CE market and as more applications are added to its library its value to price ratio will continue to grow.

In time, as the installed base of devices with new technologies like MHL grow we will start to see more dongle form factors in the smart set-top box market; although the puck design will remain highly relevant.

The price of these devices will also allow lower tier TV manufacturers to separate the connected TV component, keeping prices lower and enabling customers the option to upgrade the connected platform as desired without replacing the TV or purchasing costly and proprietary upgrade modules.

ABI practice director Sam Rosen added, "If Sony secures the rights to distribute live cable channels from Viacom, partnerships such as this allude to a content future quite different from the one many are accustomed to today."

Content holders are already forging more direct relationships to viewers and this would be a natural step forward, but the pay-TV operators are likewise evolving and adapting to this changing market environment.

ABI believes that the amalgamation of legacy pay-TV and over-the-top (OTT) video will become increasingly important, suggesting Google TV’s vision might have come too early but might grow into this role as a bridge or new entrants like Microsoft’s Xbox One might fully realize this unified vision.

Popular posts from this blog

Global Digital Business and IT Consulting Outlook

Across the globe, CEOs and their leadership teams continue to seek information and guidance about planned Digital Transformation initiatives and the most effective enterprise organization change management practices. Worldwide IT and Business Services revenue will grow from $1.13 trillion in 2022 to $1.2 trillion in 2023 -- that's a 5.7 percent year-over-year growth, according to the latest market study by International Data Corporation (IDC). The mid-term to long-term outlook for the market has also increased -- the five-year CAGR is forecast at 5.2 percent, compared to the previous 4.9 percent. Digital Sevices & Consulting Market Development IDC has raised the growth projection despite a weak economic outlook, because of vendor performances across 2022, growth indicators from adjacent markets, increased government funding, and inflation impacts. The actual 2022 market growth was 6.7 percent (in constant currency), which was 87 basis points higher than forecast last year, alth

Digital Talent Demand Exceeds Supply in Asia-Pac

Even the savviest CEO's desire for a digital transformation advantage has to face the global market reality -- there simply isn't enough skilled and experienced talent available to meet demand. According to the latest market study by IDC, around 60-80 percent of Asia-Pacific (AP) organizations find it "difficult" or "extremely difficult" to fill many IT roles -- including cybersecurity, software development, and data insight professionals. Major consequences of the skills shortage are increased workload on remaining digital business and IT employees, increased security risks, and loss of "hard-to-replace" critical transformation knowledge. Digital Business Talent Market Development Although big tech companies' layoffs are making headlines, they are not representative of the overall global marketplace. Ongoing difficulty to fill key practitioner vacancies is still among the top issues faced by leaders across industries. "Skills are difficul

Mobile Device Market Still Awaiting Recovery

The mobile devices market has experienced three years of unpredictable demand. The global pandemic, geopolitical pressures, supply chain issues, and macroeconomic headwinds have hindered the sector's consistent growth potential. This extremely challenging environment has dramatically affected both demand and supply chains. It has led to subsequent inflationary pressures, leading to a worsening global cost of living crisis suppressing growth and confidence in the sector. In tandem, mobile device industry stakeholders have become more cautious triggering market uncertainties. Mobile Device Market Development Operating under such a backdrop, the development of mobile device ecosystems and vendor landscapes have been impacted severely. Many of these market pressures persisted throughout 2022 and now into 2023, borne chiefly by the smartphone market. According to the latest worldwide market study by ABI Research, worldwide smartphone shipments in 2022 declined 9.6 percent Year-over-Year