SCOTTSDALE, AZ — Traditionally, the cable TV industry has relied on MPEG-based transport to send digital video signals. However, over the past few years, interest in Internet Protocol (IP) video has been growing, according to market research firm In-Stat.

This growth is being fueled by three factors:

  • In comparison to MPEG, IP is considered to be a cheaper and more efficient transport technology.
  • Many industry insiders consider the integrated DOCSIS cable modem to be an underutilized part of the digital cable set-top box.
  • The availability of IP video is expanding exponentially, from user-generated content such as YouTube, to telco TV service provider video, to a growing amount of over-the-top programming.
  • “When it comes to IP transport, the cable modem is the perfect conduit of IPTV to the cable TV household,” says Mike Paxton, principal analyst. “In fact, cable modems are already performing this task in millions of households, just not through the digital set-top box to the TV set. Instead, this IP video is commonly being displayed on the PC.”

    New research by In-Stat reveals the following:

  • The percentage of cable set-top boxes with integrated modems will double from 2009 to 2014.
  • Worldwide digital cable set-top box unit shipments are forecast to decline by 8 percent in 2010.
  • Regional markets poised for growth include Europe, where the demand for high-definition cable set-top boxes is fueling growth.
  • Revenue from digital cable set-top boxes in Latin America will approach $200 million by 2014.
  • The value of semiconductor components used in cable set-top box products was $2.8 billion in 2009, only fractionally higher than in 2008.
  • Share