To: BillyG who wrote (30844 ) 3/12/1998 9:02:00 PM From: John Rieman Read Replies (2) | Respond to of 50808
Settop boxes, part-1. Market overview............................. Interactive TV Set-top boxes breathe new life into TV <Picture> Digital set-top boxes provide easy and affordable access to on-line service providers via a variety of networks, including cable, satellite, ATM, ISDN and POTS lines. They also offer providers a wealth of opportunities to add value with services that range from basic Internet access to video on demand (VOD) to home banking. Based on these merits, the digital set-top box segment is predicted to take off over the next few years, feeding a huge and growing market that is increasingly hungry for interactive entertainment. Expectations for growth in the digital set-top box arena are high. Worldwide digital cable box production is projected to reach 3.2 million units this year, 5.8 million units in 1999, 8.6 million units in the year 2000 and 12.5 million in 2001, according to figures released by Dataquest at the end of last year. But these figures will not be realized unless the underlying infrastructure for digital broadcasting services is expanded and enhanced accordingly. Some hardware manufacturers have held back their drives into the digital set-top box market over the past year, waiting for the launch of more broadband network services capable of handling the traffic that digital set-top boxes push through. Also, like in the DVD segment, many are holding out for more content providers to come forth. Still, it is clear that the impetus for a large-volume set-top box industry exists, and the many players are working to make their products suitable for a mass market. Rising output and substantial advancements in chip integration have brought the prices of digital set-top boxes well within acceptable consumer ranges, even as performance is increased. As the industry moves forward, it is possible that set-top boxes will become as commonplace in home living rooms as standard TV sets -- and in a few years, they might even converge.