Back to top

Analyst Blog

The set-top box market is expected to flourish in the near future. According to the research firm, IHS, this market will continue to improve through 2015. This is primarily attributed to increasing deployment of HD set-top boxes, multimedia home gateways and several other forms of digital set-top boxes in the customer premises by the cable TV operators.

In the U.S., cable operators are facing fierce competition from online video streaming service providers. Leading video streaming operators like Netflix Inc. (NFLX - Analyst Report), Hulu.com and YouTube etc. have become a severe threat to cable TV operators. These online videos provide an extremely cheap source of TV programming unless the customer is eager to see real-time programs like sports events. This business model is gaining momentum, especially in the ongoing economic uncertainty.

In order to counter the threat by the online video streaming providers, cable TV operators are gradually offering multi-screen video services. Video services are now available in PCs, laptops, tablets, smarphones and other pocket digital devices. For this, the cable TV operators mainly depend on superior quality set-top boxes or video gateways.

IHS estimated that the global set-top box shipment will grow 8% year-over-year to 269 million units in 2013 from 250 million units in 2012. This is further expected to increase 6% in 2014 to 286 million units and another 1% in 2015 to 290 million units. Moreover, IHS also estimated that the global set-top box revenues will reach a record-high $22.2 billion in 2013.

According to research firm, Infonetics, the worldwide video gateway market size may leap from a mere $97 million in 2012 to around $3.6 billion in 2017. Cisco Systems Inc. (CSCO - Analyst Report) is a major player in the video infrastructure market. However, recently, Arris Enterprises Inc. (ARRS - Analyst Report) has become a major competitive threat to Cisco after its acquisition of the set-top box business of Motorola Mobility, a subsidiary of Google Inc. .

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.80 +7.04%
BANCO DO BR… BDORY 14.74 +5.66%
AIR INDUSTR… AIRI 9.99 +4.15%
EQT MIDSTRE… EQM 98.14 +3.38%
WEATHERFORD… WFT 23.64 +3.10%