Gateway Set-top Boxes are a Bright Spot in a Tough Market

Oyster Bay, New York - 21 Jan 2014

DirecTV’s Genie, Liberty Global’s Horizon, Dish’s Hopper and the boxes that power Comcast’s X1 service have something in common other than better marketing names than an older generation of boxes more commonly known by model names such as “DCT6200”. These feature-rich boxes bring more tuners to centralize DVR resources (minimizing DVR conflicts), as well as better processing power.This horsepower improves responsiveness and user interface, and will also act as a “Trojan Horse” as operators look to extend home automation and energy management services into homes.

These feature-rich gateway boxes were first shipped in small quantities in 2010.According to ABI Research’s Set-top Box findings, last year North American and Western European operators shipped 4.5M units in a market which is conservatively estimated to grow 84% to 8.5 million by 2018.

Practice director Sam Rosen commented, “Operators have made decisions to move to gateway boxes for economic reasons, but more and more they are leveraging the power of those boxes to improve the quality and consistency of the experience they offer to consumers.Advertising campaigns highlighting unique features will supplement price and bundle oriented campaigns and target higher-end customers.U.S. satellite operator Dish networks, for example, will highlight the uniqueness of its watch anywhere model, which is less subject to rights agreements than other operators.”

These findings are part of ABI Research’s Cloud Video and Video Hardware and Set-top Box and Home Networks Research Services.

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