SCOTTSDALE, Ariz., Dec. 4 /PRNewswire/ -- The outlook for the Digital
Terrestrial TV (DTT) set top box (STB) market is not as rosy as once thought,
according to In-Stat/MDR ( http://www.instat.com ). The high-tech market
research firm reports, that with ITV Digital (formerly OnDigital) in the UK,
and Quiero TV in Spain going out of business, other Pay-TV operators
postponing the introduction of their DTT services, and the slowing of
deployment schedules due to the weakening global economy, a market that was
once expected to generate $2.4 Billion in revenue in 2005, will top a mere
$1.4 Billion in 2006. The value of semiconductors in DTT STBs will just barely
top $500 million during 2006.
"DTT broadcasting is the next generation of over-the-airwaves television
signal that is expected to replace today's analog terrestrial television
service," said Gerry Kaufhold, a Principal Analyst with In-Stat/MDR.
Governments are anxious to turn off their analog TV signals, and auction the
spectrum space to mobile communications carriers and TV set manufacturers and
set top box designers are salivating at replacing billions of old TV sets with
new, digital, products, creating an enormous market. Someday, DTT STBs will
out-sell digital cable or digital satellite products.
"However, the obstacles facing DTT are manifold," says Kaufhold, "In the
US, nobody knows if the transmission and reception technology will work in
massive deployments. There is tremendous energy going into innovative DTT set
top boxes, and semiconductor vendors are evolving their chips to support
advanced features such as Personal Video Recorders, interactive e-commerce,
and data casting services. But consumers won't buy the boxes unless they feel
they get a unique value from it. Television networks need to figure out how to
migrate their programming and services onto new, digital, platforms, or
consumers will just keep their old, analog TV and thwart the DTT revolution.
All eyes are on the UK, because the BBC and their partners have re-launched
their DVB-T Freeview digital service."
In-Stat/MDR also found that:
-- DTT STBs will ship in smaller volumes than either digital cable or
digital satellite boxes through at least 2006. Long term, DTT will
eventually surpass cable or satellite box shipments.
-- Europe is evolving DVB-T into a free-to-air service, expanding the
market, but it will take a longer time to develop. The UK deployment
of Freeview will help tell this tale in the near term.
-- The US is mandating ATSC receivers into all new TV sets, which will
impact the viability of DTT set top boxes, but nobody knows if all
consumers who buy a DTT-equipped TV will reliably receive the signal.
-- Asia holds the most promise for DTT set top boxes. However, the Asian
market for DTT set top boxes will only begin developing after 2005,
and will not have major impact until late in the decade.
The report, "Can You See Me Now? Digital Terrestrial TV On The Edge Of
Its Seat -- Updated DTT Set Top Box Forecast" (#IN020043ME), presents
individual overviews of each regional market for digital terrestrial TV,
provides in-depth forecasts for shipments of DTT set top boxes, and includes
detailed bills-of-materials (BOMs) for High End and Low End set top boxes in
each of six geographic regions. It also provides worldwide summary forecasts.
To purchase this report, or for more information, please visit
http://www.instat.com/catalog/cat-me.htm or contact Erin McKeighan;
emckeighan@reedbusiness.com at 480.609.4551. The report price is $3,995 USD.
About In-Stat/MDR
In-Stat/MDR ( http://www.instat.com ) offers a broad range of information
resources and analytical assets to technology vendors, service providers,
technology professionals, and market specialists worldwide. The company stands
alone in its ability to integrate both supply-side and demand-side research
methodologies into a single comprehensive view of technology markets and
products. This capability relies on a unique ability to cover the entire value
chain from engineering-level technology, through equipment, infrastructure,
services and end-users.
In-Stat/MDR is part of the Reed Electronics Group, a division of Reed
Elsevier ( http://www.reedelsevier.com ), a world-leading publisher and information
provider. With over 38,000 employees worldwide, Reed Elsevier operates in the
science & medical, legal, education and business-to-business industry sectors,
providing high value and flexible information solutions to professional end
users, with increasing emphasis on the Internet.
For further information please contact Gerry Kaufhold, Principal Analyst -
Converging Markets and Technologies, +1-520-363-9752,
gkaufhold@reedbusiness.com, or Kirsten Skedd, Marketing Manager,
+1-480-609-4534, kskedd@reedbusiness.com, both for In-Stat/MDR.
SOURCE In-Stat/MDR
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Related links:
http://www.instat.com
CONTACT:
Gerry Kaufhold, Principal Analyst -
Converging Markets and Technologies, +1-520-363-9752,
gkaufhold@reedbusiness.com, or Kirsten Skedd, Marketing Manager,
+1-480-609-4534, kskedd@reedbusiness.com, both for In-Stat/MDR
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