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Technology Stocks : C-Cube

CUBE 35.90

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11:04 AM EST

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To: VidiVici who wrote (48004)	12/24/1999 10:52:00 AM
From: John Rieman	Read Replies (1) of 50808

Europe's settop box market...................... globalsources.com Digital TV drives demand for set-top boxes The market for set-top boxes (STBs) is growing rapidly. European producers raised production of STBs by an average of 17 percent over the last three years, to a total in excess of 10.5 million units in 1998. Production volumes were forecast to grow at the same rate last year as cable and satellite service providers sought ways to expand their consumer base and attract new subscribers. As the STB market matures, the number of STB suppliers will decline due to mergers and acquisitions. The switch to digital TV across Europe is driving demand for STBs but is bad news to makers who have pinned their hopes on Integrated Digital TV (IDTV) receivers. It is anticipated that intelligence will reside in the STB with the TV set left as a dumb monitor. This approach enables technology and software upgrades to be made more cheaply and easily than with IDTV, where consumers risk being saddled with costly, outdated products. STB sales will also receive a boost from service providers that want to build up their subscriber bases quickly without waiting for customers to replace their old TV sets. The rise of STBs further erodes the position of the TV set in consumer electronics spending in Europe. The share of TV sets within total consumer electronics spending has fallen from 65 percent to 14 percent in the past 30 years. Taking its place are VCRs, CD players, PCs and communications devices. The ability to access the Internet is another advantage of STBs, and it is believed that digital TV STBs will displace the dedicated Internet STBs offered by some suppliers. One yet-to-be-answered question with the switch to digital TV is the problem of multiple ownership of TVs and VCRs. Many European households own three or more TVs and VCRs ? all of which need to be upgraded or replaced by digital equipment. globalsources.com

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