2010 has shown steady growth in STB shipments so far this year, indicating that shipments from the four main platforms (Digital Cable, DTH satellite (and subsequent references), DTT and IPTV) will surpass those seen in 2009, rising from 210 million to 214 million by year end. Indeed, STB shipments have proven to be recession proof in the past several years, showing gains while some other consumer electronics have faltered, but just how far can it go? DTC’s recent look at the markets indicates many of the factors that have been driving this surge will soon cool, putting more pressure than ever on manufacturers to push features and trim costs to preserve both market share and margins.

Several factors have been pushing shipments to new heights over the past couple of years. DTH continues to be responsible for the most substantial gains, fueled by new FTA launches worldwide, massive subscriber growth in India, as well as an increasing uptake of HD/advanced services in more mature systems worldwide, helping to fuel replacement units. Digital cable, meanwhile, continued to see gains from accelerating Chinese system deployments, as well as DTA (digital to analog) adapters in the U.S market. IPTV also saw gains, benefiting from both continued subscriber growth, particularly in the U.S., and a healthy upgrade trend.

DTC expects much of this activity to slow across the board, with shipments peaking by 2011 as new subscriber/FTA growth worldwide wanes in key markets like China, India and Eastern Europe across platforms, and more mature systems see cyclical contractions in their replacement cycles.

Source: DTC