SCOTTSDALE, AZ â€” 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.
â€œWhen it comes to IP transport, the cable modem is the perfect conduit of IPTV to the cable TV household,â€ says Mike Paxton, principal analyst. â€œIn 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.â€
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.