Set-Top Revenues Rise, But Shipments Fall In Q3

Market Sending ‘Mixed Signals,’ Infonetics Says
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Noting that the global set-top box market is sending “mixed signals,” shipments in the category dropped 3% in the second quarter of 2014 versus the year-ago period, while revenues rose 4%, to $4.8 billion, Infonetics Research revealed in a report issued Tuesday.

Infonetics, which tracks global shipments of IP, cable, satellite, digital terrestrial set-tops and over-the-top media servers, noted that set-top units grew 7% on a sequential basis.

Buoyed by a refresh cycle in North America and Europe, the cable set-top category was a bright spot as revenues rose 3% sequentially in the second quarter of 2014, and shipments gained 4%.

Arris, which reports third quarter results on October 29, remained on top of the global set-top market, gaining almost 2 share percentage points in the period versus the first quarter of 2014, Infonetics noted.

“The global set-top box (STB) market is in a fascinating period of mixed signals,” Jeff Heynen, Infonetics’ principal analyst for broadband access and pay TV, said in a statement. “While quarterly unit shipments are up, on a year-over-year basis shipments are down. And though nearly all STB product categories saw volume increases in 2Q14, satellite shipments continue a downward trend, while cable set-tops are growing due to an ongoing refresh cycle in North America and Europe.”

Infonetics sees the global set-top market heading into negative territory in the years ahead, forecasting a -0.05% compound annual growth rate from 2013 to 2018, when it will total $19.2 billion.