Set-top Box Vendor Consolidation Required to Meet Demands of Merged Operators Such as AT&T-DirecTV, Says ABI Research

  Set-top Box Vendor Consolidation Required to Meet Demands of Merged
  Operators Such as AT&T-DirecTV, Says ABI Research

Business Wire

SCOTTSDALE, Ariz. -- May 28, 2014

The set-top box market has generally maintained historical leadership
positions based on a cable, satellite or IPTV focus. Of the top five set-top
box vendors—Arris, Cisco, Technicolor, Pace and Echosta—most are heavily
weighted to one sector, or, in some cases, have robust proportions serving two
of the three sectors. This definition won’t meet the needs of modern operators
today who are looking at extending their services over multiple networks.

“This mature, yet fragmented market, in which the top five vendors account for
about 37% of revenues, is ripe for further consolidation. We continue to
believe that integration of historically separate cable and IPTV providers
with satellite set-top OEMs would bear fruit in the increasingly hybrid
set-top box world generated with acquisitions such as AT&T’s acquisition of
DirecTV,” according to ABI Research practice director Sam Rosen.

Arris maintained the first spot in the global set-top box market during 2013
with $2.1 million dollars in set-top revenues and about 18.5 million units and
a cable and IPTV focus, staying ahead of Pace, which is over-weighted on
satellite with smaller cable and IPTV segments. Pace maintained its second
position in revenues while falling behind Technicolor from a volume
perspective. The set-top box divisions of Chinese consumer electronics (CE)
manufacturers Skyworth and ChangHong, which could have been expected to gain
significantly, largely remained flat as free-to-air markets did not expand as
might have been expected.

“Pace performed a significant feat increasing revenues slightly with 10% lower
volumes by focusing primarily on the high-end gateway market. This position,
along with its focus on services, seems to be yielding fruit,” continued

These findings are part of ABI Research’s “Set-top Box Market Shares” Market
Data and can be found in the Set-Top Box and Home Networks Market Research

ABI Research provides in-depth analysis and quantitative forecasting of trends
in global connectivity and other emerging technologies. From offices in North
America, Europe and Asia, ABI Research’s worldwide team of experts advises
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ABI Research
Christine Gallen, +1-516-624-2542
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