The demand for interactive and personalized television services will push annual worldwide set-top box shipments over 200 million by 2013, as providers overhaul their current base with next-generation models, according to the Parks Associates research group.

The firm said in a 2009 report that the global digital transition and new distribution channels like DTT, IPTV, and over-the-top video services will intensify competition in the television service market. Carriers and manufacturers looking for a competitive advantage will replace their current installed base of set-tops with advanced models capable of supporting applications such as time- and place-shifting and Internet-based offerings.

“Consumers are attracted to the concept of connected CE, with one-third of U.S. broadband households very interested in a set-top box that connects to their computer and Internet service as well as their TV,” said Jayant Dasari, research analyst, Parks Associates. “While less than 10% are willing to pay a monthly fee, demand is still on an upward trend, especially as the set-top connects to more and more services.”

Growing demand is good news for service providers, especially cable and telco/IPTV operators, who are leveraging the set-top box platform to support their multiplay strategies, he added. With the box connected to a variety of sources, it will expand the battle in the television services market to the entire digital home, affecting every service sector from energy management and security to voice and video, Dasari said.

Most of the trends Parks Associates predicted are slowly coming true.

From the article, "Demand for interactive television service to push growth of set-top boxes" by Dennis Sellers.

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