Tuesday, May 3, 2011

OTT Helping Drive STB Sales

Times they are a changing! According to a market share and forecast report put out by Infonetics Research, STB shipments are forecasted to increase by 25% by 2015, despite a 1% quarter-over-quarter dip in worldwide STB sales in 4Q10. As the cost of STB boxes continue to fall, projected revenues from STB sales are expected to decline 5% by 2015. In contrast, OTT media server revenue is forecast to grow to $1.16 billion in 2015, according to Infonetics.

OTT STBs experienced the strongest growth with Netflix and Hulu’s introduction of low-cost streaming options. Netflix added 3 million new subscribers in 4Q10 alone while Hulu Plus is expected to have a subscriber base of over 1 million in 2011.
“In the fourth quarter of 2010, we witnessed the dramatic growth of over-the-top services, as service providers and equipment vendors hit the ‘sweet spot’ for pricing. However, these services continue to complement pay TV rather than replace it,” said Teresa Mastrangelo, directing analyst for video at Infonetics Research.

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