Strength in the satellite and IP set-top box (STB) markets could not offset a contraction in the cable market that caused the overall STB market to decline 2 percent during the second quarter, according to a newly published report from Dell’Oro Group.
The cable market, dominated by North America, is in the midst of a correction after two years of increases fueled primarily by: (1) United States Federal Communications Commission’s separable security mandate and (2) increased distribution of lower-end products by cable MSOs wanting to convert analog and terrestrial broadcast consumers to low-end digital cable services.
“Although the cable market took the brunt during the quarter, both cable and satellite operators in North America are experiencing increased competition from telecom/IP operators, as well as suffering from a poor economic environment, in which consumers have been trimming purchases of premium channel and video-on-demand services,” said Greg Collins, Vice President at Dell’Oro Group.
