According to statistics of the ITIS project - a project initiated by Taiwan's Ministry of Economic Affairs and conducted by Taipei-based MIC - shipment volume of the Taiwanese cable STB (Set Top Box) industry is estimated at 2.2 million units, representing a year-on-year growth rate of 23%. Meanwhile, shipment value reached approximately US$144.5 million, up 16.1% year-on-year. With the increasing demand for HD and PVR models in the European and North American markets, shipments of these two product types have seen significant growth. As a result, ASP (Average Selling Price) of the Taiwanese industry reached US$65.7 in the third quarter, up 2.2% sequentially.
According to MIC Industry Analyst Chien-Hsun Lee, "in the third quarter, the conversion to digital TV and replacement demand in the European and North American markets remained key growth drivers for cable STB shipments. Taiwanese makers continued to receive orders from major brand-name vendors including Motorola, Cisco, ADB, Pace and Thomson. In addition, Panasonic and Samsung are gaining market share in the United States, which also benefits Taiwanese makers' shipments." Mr. Lee also stated that STB products contract manufactured by Taiwanese makers are shifting to high-end STB models with HD or PVR functionality.
Looking at developments in Asia, although the Chinese market boasts a sequential shipment volume of several million, most of the models shipped are basic models. The competition from Chinese makers is fierce and profit margins are small. In addition, as the market entry barriers are relatively high in China, overseas vendors find it hard to break into the market.
China recorded considerable growth in the number of new digital cable TV subscribers in the first half of 2008, and the cumulative number of digital cable TV subscribers in China reached over 36 million as of the first half of the year. Although the market hype of the Olympic Games has faded, it is forecasted that the number of digital cable TV subscribers will total 45 million at year-end 2008, with the government and operators cooperating in promoting services. Significant demand for cable STBs will be generated by this subscriber growth.
Meanwhile, the number of cable TV subscribers in India reached 78 million at the end of 2007. The conversion to digital TV is yet to take place in this region. The TRAI (Telecom Regulatory Authority of India) proposed a five-year plan to implement digital switch for cable TV in July 2008. If the Indian government approves this plan, considerable new market opportunities will emerge for the cable STB industry.
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About MIC
Market Intelligence Center, based in Taipei, Taiwan, was founded in 1987. MIC is Taiwan's premier IT industry research and consulting firm providing intelligence, in-depth analysis, and strategic consulting services on global IT product and technology trends, focusing on markets and industries in Asia-Pacific. MIC is part of the Institute for Information Industry. https://mic.iii.org.tw/english
About ITIS
The ITIS (Industry and Technology Intelligence Services) project is managed by the Department of Industrial Technology of Taiwan's Ministry of Economic Affairs. As part of the project, research is conducted in a variety of fields, including the ICT sector. The project serves both the public and private sector.