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Summary:

The Internet is coming to the flat-screen TV in your living room, and one of the devices that’s making this possible is the set-top box provided by your cable TV company. A new report estimates that hybrid set-top boxes will be worth $1.4 billion by 2014.

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Cable, satellite and IPTV providers are increasingly going to provide their customers with connected set-top boxes, according to a new report from In-Stat. The market research company predicts that the value of these so-called hybrid set-top boxes will reach $1.4 billion by 2014. This trend will in part be driven by apps and widgets, as well as by advanced advertising.

In-Stat believes that one of the growth market for hybrid set-top boxes will be Europe, which already has some more advanced services in place. One example would be the Virgin Media implementation of the iPlayer, which now accounts for 20 percent of all iPlayer traffic.

Also noteworthy: In-Stat forecasts that Intel’s chipsets will play a major role in the future of hybrid set-top boxes, as the x86 platform has been on the forefront of adopting formats like DivX, VP8 and Flash.

One company not specifically mentioned in the report is Roku, whose set-top box has been mostly known for over-the-top services like Netflix and Amazon VOD. However, Roku recently forged an alliance with Clearleap which could lead to pay TV providers using its hardware to deliver linear programming, essentially opening up another avenue to the hybrid set-top box market. Check out my recent interview with Clearleap’s CEO Braxton Jarrat below.

Related content on GigaOm Pro: Connected Consumer Market Overview, Q2 2010 (subscription required)

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  1. [...] increase to 237 million units over the next five years. In-Stat also believes that in 2014, the the set-top box market will be worth $1.4B — which would undoubtedly be a major part of that potential growth, thanks to the 11 million [...]

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