In-Stat/MDR reports that the worldwide IP/DSL set-top box (STB) market is expected to grow to over seven million units and more than $700 million revenue by 2008. Despite the segment's rosy outlook, 2003 was the first year any IP/DSL STB maker shipped over 100,000 units in a single year.
The growth will be driven by the increasing popularity of telephone company-supplied video services, the market research firm says.
In a recently released research report, In-stat/MDR finds that:
- The market will grow to 1.3 million unit shipments in 2004.
- Most of the shipments and revenue will come from Europe and Asia where telephone company (telco) TV activity is greatest
- The stepped-up activity has caused IP/DSL set top box manufacturers to develop new product models. Many have expanded their product lines to include several models rather than only one.
- Increased volumes are bringing the costs of IP/DSL set top boxes down. Basic boxes can be found for less than $100 today as compared with $150 last year.
- There are multiple models available today capable of decoding the H.264 and Windows Media Video 9 advanced video compression schemes.
The report, titled IP/DSL Set Top Boxes: Benefiting from the Rise in Telco TV, contains analysis and forecasts of IP/DSL set top box markets in various categories and regions of the world from 2003-2008, and also includes analysis of products and strategies of major operating system and middleware vendors. Further details are available online.
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