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Set-Top Box Sales Expected to Slow

Digital set-top box manufacturers and component

suppliers should prepare for slower sales growth

this year, according to forecasts from industry

consultants Strategy Analytics.

New digital TV set-top box installations in 2000

reached 27.5 million units worldwide, representing

a growth rate of 51 percent, Strategy Analytics

said. This year's volume is predicted to reach

34.2 million units, equivalent to 24 percent growth.

The U.S. market will see a sharp slowdown this year,

with the growth rate falling from 53 percent to 19

percent, the firm said. Total U.S. set-top box sales

for 2001 are expected to reach 17.1 million units.

Worldwide in 2001, Strategy Analytics said cable will

account for 37 percent of digital set-top box sales,

with satellite taking in 60 percent and terrestrial

3 percent.

The Strategy Analytics research is presented in a

study entitled "Interactive Digital Television:

Worldwide Market Forecasts."

"Set-top box manufacturers and their component

suppliers have had a few good strong years," said

David Mercer, vice president of the consumer practice

at Strategy Analytics. "But 2001 looks like showing

the slowest growth since sales began, and budgets

should be set accordingly."

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