Kagan: Good News, Bad News for Set-Tops

According to SNL Kagan, global set-top box shipments maintained elevated levels in 2015, buoyed by demand in emerging markets such as ...

Jan 15th, 2016
Kagan Eyes Retrans Fee Growth
Kagan Eyes Retrans Fee Growth
According to SNL Kagan, global set-top box shipments maintained elevated levels in 2015, buoyed by demand in emerging markets such as China and India. Worldwide set-top shipments are expected to reach 253.1 million in 2015, up marginally from 248.6 million in 2014, as the global multichannel market swelled to an estimated 959 million subscribers, according to the research house's estimates for global volumes.

Other findings indicate:

  • Worldwide cable set-top unit shipments are forecast to reach almost 75 million units in 2015, roughly the same total that shipped in 2014. With many of the world's largest cable TV markets approaching saturation, or experiencing increasing competition from other pay TV platforms, demand for cable set-tops is expected to be flat in the near-term.
  • Satellite set-top unit shipments continue to be the largest market segment, on track to account for 47% of all global set-top unit shipments in 2015.
  • The market for IP set-tops is also projected to remain relatively flat over the next few years, as growing demand for IP set-tops in Europe and Asia is offset by declining demand in North America.
  • Shipments of DVR-enabled set-top products trended lower in 2015. Select service providers are reducing their DVR product purchases because of cost concerns, and others are introducing cloud DVR services, which can obviate the need for an installed DVR-enabled set-top.
  • HD-enabled set-tops are forecast to account for 76% of all global set-top unit shipments in 2015, which means there are still more than 60 million SD set-tops shipped.
  • Despite higher volumes, product revenues are forecast to also continue decreasing. By 2019, set-top product revenues are projected to be $14.55 billion, down from $17.50 billion at year-end 2015.
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