To: Maya who wrote (50573 ) 1/13/2001 7:46:58 AM From: John Rieman Respond to of 50808 Settops set to grow..................................broadcastengineering.com Digital Set-Top Box Market Still In Infancy Despite Rapid Growth, STBs Still Have a Long Way to Go, Says Allied Business Intelligence OYSTER BAY, NY (Dec. 12, 2000) -- A worldwide conversion from traditional analog broadcasts to digitally-encoded transmissions is powering the digital set-top box market to become a $21 billion market by 2005. The global installed base of digital set-top boxes will increase from 44 million in 1999 to 339 million boxes by 2005. The key catalyst for growth will be the use of digital set-top boxes by both satellite and cable operators. This is according to Allied Business Intelligence's (ABI) report "Digital Set-Top Boxes: World Markets, Architectures and Vendors." The report discusses the shift toward digital set-top boxes across satellite, cable and terrestrial platforms. These platforms are further segmented on a geographical basis. "The massive growth in digital set-top box shipments is occurring at the same time as the set-top box is evolving beyond being a simple television transmission receiver," said ABI analyst Joshua Wise, the author of the report. "With expanded feature sets, newer generations of digital set-top boxes are at the epicenter of the convergence between the entertainment, computing and broadband industries." The first wave of digital set-top box deployments came largely in the DBS field. At the end of 1999, 76% of all digital set-top boxes deployed serviced DBS subscribers. DBS providers are expected to continue to expand their digital subscriber base significantly with North America alone accounting for over 26 million customers by 2005. The second wave of digital set-top boxes, which is already under way, is highlighted by the impact of digital cable service and the increased emphasis on advanced "thick client" features. By 2005 the cable platform will account for 40% of the total worldwide installed base of digital set-top boxes and should have begun to outsell boxes based on the satellite platform. Meaningful impact from terrestrial digital television (DTV), the third major broadcast platform, on the sales of digital decoder boxes will be delayed until 2003 onward, by which time more countries will have begun DTV broadcasts. DTV transmissions have been delayed by standards wrangling, most notably in the US. Nevertheless, with over 100 US stations already broadcasting some DTV content, the terrestrial platform represents untapped potential. Allied Business Intelligence Inc is an Oyster-Bay, NY-based technology research think tank specializing in communications and emerging markets. ABI publishes strategic research on the broadband, wireless, electronics, networking and energy industries. Details of these studies can be found at alliedworld.com or call 516-624-3113 for more info. SOURCE Allied Business Intelligence