Infrastructure // PC & Servers
03:24 PM

HD PVR Market Predicted To Grow 61%

Revenues from high-definition personal video recorders are projected to rise dramatically by 2014, while standard definition set top box revenue plummets, according to research firm In-Stat.

There will be a decline in standard definition (SD) box revenue from current levels of $1.4 billion to $438 million by 2014, as migration to high definition television grows, according to research firm In-Stat. During the same timeframe, HD PVR (personal video recorder) set top box revenues will increase by 61%, the firm reported this week.

Standard top box unit shipments will decrease by 10% worldwide, from 2009 to 2014, In-Stat said. By contrast, digital PVR standard box top unit shipments will increase 57% by 2014. Only Asia, Latin America and Eastern Europe will see growth in worldwide total digital standard top box shipments in the next five years, the firm reported. And Asia has a market share of 36% to dominate the worldwide digital set top box market, In-Stat said.

The firm also finds growth of HD set top boxes will be greatest in the Western European market among all major geographic regions.

In related research, the firm also found that the demand for worldwide set top box unit shipments increased 11% globally, reaching an all-time high in 2009. The market growth was fueled by record demand for both satellite and terrestrial set top boxes, In-Stat said. "The set top box market will be solid for the next few years. However, there are some emerging threats that will test the market's long-term viability," said analyst Mike Paxton, in a statement.

The key threat areas will be from over-the-top video products including Apple TV or TiVo's Premiere product, In-Stat said, which may propel consumers to cut off their paid TV service. Additionally, set top boxes could be replaced by software platforms that allow consumer electronic devices to run, the firm said. And consumer electronic devices like video game consoles and TV sets that increasingly are replicating the capabilities of a digital set top box will also test the market, In-Stat said.

For 2011, expect shipments of significant numbers of hybrid set top boxes that integrate IP video with an existing broadcast platform, especially in Europe, the firm said. The set top box market will stay vital through at least 2012, In-Stat said, through continued demand for HD-capable set top boxes and PVR-enabled products, in conjunction with the ongoing transition from analog to digital.

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