Market Trends of Television and Set Top Box Industry
This section covers the major market trends shaping the Television & Set Top Box Market according to our research experts:
Satellite Technology is Expected to Witness Significant Market Growth
- Satellite television is one of the most significant applications of the set-top box market. One of the innovations in satellite TV is introducing a show-recording facility, which enables consumers to record their shows in real-time and watch them later at their convenience.
- Also, the satellite STB units are increasingly equipped with various interactive features, like video-on-demand, electronic program guides, etc. More advanced STB units also provide a suite of interactive and multimedia services directly through a user television system, such as internet browsing, email, and instant messaging, in addition to basic functionality.
- The governments have been looking to expand their space programs to increase the range of respective direct-to-home (DTH) offerings within and outside their borders. In the 2nd quarter of this year, ISRO announced the launch of the communication satellite GSAT-24. The satellite was launched by NewSpace India Limited (NSIL) in its first demand-driven communication satellite mission. The total satellite capacity on board GSAT-24 will be leased to its committed customer Tata Play, the DTH business of Tata Group, to meet their application requirements.
- Moreover, satellite/DTH set-top box market vendors are coming up with attractive offers to lure the customer base in this market. For instance, in the last quarter of 2021, Dish TV offered a free MPEG4 box upgrade offer for users in Maharashtra, Uttar Pradesh, West Bengal, North East, and Assam, and eight more states, including Orissa, Punjab, Rajasthan, Haryana, Gujarat, Himachal Pradesh, Chhattisgarh and Jammu & Kashmir in India. The set-top box, remote, HDMI, or A/V cable and adapter would be provided upon upgrading. Subscribers will also get 12 monthly warranty on the new STB. Furthermore, the launch of Hybrid DTH set-top boxes is gaining popularity in the satellite segment of the STB market.
- As per Telecom Regulatory Authority of India (TRAI), in India's DTH market during the first half of the last year, Tata Sky, a business under the Tata Group, had the most significant share with around 33% of the market. During the measured time, the operator was ahead of Airtel, followed by Dish TV and Sun Direct. The remaining DTH operators further solidified their control of the market that year, except for Dish TV, which suffered a fall in its market shares. Hence, the rise in such market shares of these operators will amplify the market throughout the forecasted period.
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Asia Pacific to Hold Major Market Share
- The Asia-Pacific region is also one of the prominent regions in terms of technology adoption. Due to the market saturation of Pay-TV consumers and stiff competition, vendors in the Asia Pacific region are constantly trying to add features to their Smart android-based televisions, such as gateway abilities, security, applications, and HD functionality.
- Moreover, the supportive government regulations mandating the installation of set-top boxes in Asian countries are driving the growth of the Asia Pacific set-top box market. According to the Ministry of Information and Broadcasting (MIB), there are 1726 MSOs. Further, there is 12 MSOs and one Headend-in-the-Sky (HITS) operator with a subscriber base greater than one million each. There are currently 4 Pay DTH operators in India, providing television services to 69.57 million users.
- Additionally, the region's market is expanding due to the growing emphasis on higher-quality movies and potent technological interfaces and the nation's low production costs brought on by the availability of plentiful resources and labor. Companies such as Technicolor, and others, have been expanding their manufacturing capabilities in Asian countries such as India. Moreover, in the 3rd quarter of the last year, Tata sky also unveiled its first batch of India-made set-top boxes. The set-top boxes were manufactured in partnership with Technicolor Connected Home and Flextronics.
- Additionally, the region has clearly seen the transition from cable to over-the-top (OTT). The main cause of the transition was the lockdowns implemented to stop the COVID-19 pandemic from spreading. According to last year's report by SpotX, a video advertising and monetization platform, more than 400 million people use OTT video streaming services across the Asia Pacific region, with over 69% of video viewers watching a streaming video at least once a week. Furthermore, the top three markets for OTT viewing included Singapore (91%), Australia (81%), and Indonesia (76%). Also, OTT streaming has increased drastically in Southeast Asia.
- Also, according to the data released by the TRAI, cable and DTH television service providers ceded ground to streaming services during the pandemic, as Netflix, Amazon Prime Video, and AltBalaji reached a significant number of subscribers. On similar lines, telecom DTH providers are also partnering with OTT players to offer complete entertainment content. In the third quarter of the last year, Vodafone Idea announced that the telecom industry is undergoing a digital transformation due to the growing consumption of OTT platforms and the Internet of Things (IoT) acceleration. The company partnered with local OTT platforms such as Voot Select and Sun NXT.
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