As consumers upgrade to better broadband networks they are driving growth in broadband customer premise equipment (CPE). ABI Research predicts that broadband CPE shipments will top 153.6 million by year-end with fiber-optic CPE devices increasing about 12 percent in 2015 and DSL and cable CPE devices slightly declining.
Arris reported an 18 percent drop in customer premises equipment sales in the second quarter, driven by a 7 percent drop in sales of set-tops and gateways to cable companies, and a 17 percent decline in sales of these products to telco services AT&T U-verse and Verizon FiOS.
French media technology conglomerate Technicolor has agreed to purchase Cisco's customer premises equipment (CPE) division for $602 million, a move delivers a second burst of consolidation to the fast-declining pay-TV set-top industry.
Netflix and Hulu have both reported massive new subscription growth. And from HBO Now to CBS All Access to Sling TV, a flurry of new over-the-top choices have been added by programmers and distributers. Still, somehow, in its latest Consumer Entertainment Index, Arris claims that the percentage of North American survey respondents reporting regular OTT use dropped from 88 percent in 2014 to 86 percent this year.
Despite a flurry of new streaming video choices, the number of U.S. and Canadian consumers who identify themselves as regular users of over-the-top content actually declined 2 percent over the last year, according to Arris' latest Consumer Entertainment Index report.
The set-top box may be the hub of the pay-TV consumer's living room, but it's clear that a number of factors such as cloud-based platforms and a consolidating industry is taking its toll on the industry segment.
In the 2000s, global sales of pay-TV set-tops boomed, as operators raced to keep up with consumer demand for digital video recorders, HD and digital cable. But all winning streaks eventually come...
The once fast-growing pay-TV set-top market is changing fast. And for set-top manufacturers, it's not for the better, as the forces of operator consolidation and pay-TV market maturity, as well as the emergence of cloud-based video distribution systems, begin to take their toll.
Offering shareholders a status update on its proposed $2.1 billion takeover of rival Pace, Arris revealed that the Justice Department has made a "second request" for information regarding the deal.
Global shipments of pay-TV set tops reached just $15.3 billion in 2014, down nearly 4 percent from the $15.9 billion in sales reported in 2013, according to research firm IHS.