Considers New Generation Set-Top Boxes: Is the Home Media Center Nearly Upon Us?

US

ABI Research: The market for set-top boxes — the consumer's main point of connection to cable-based services — is huge, and will remain so for some time. But the shape of the STB's next generation replacement or evolution is already discernable, and it's called the Home (or Broadband) Media Center. However products like these are not going to be snapped up in large numbers immediately because consumers are largely unaware of them. They're also more expensive than today's simple STBs; there's a question mark over the level of interactivity they will offer; and there is an inherent risk in building a device which does everything, but nothing very well. That is why ABI Research is skeptical about some vendors' plans to incorporate CD/DVD players in their home media centers. They won't offer the same functionality or quality as stand-alone units, they won't generate easy profits, and they will be unpopular with entertainment content owners. Arden believes that home media centers may start to replace STBs in the United States around 2008, but that the process will start later in other parts of the world. Set-Top Box Market Development for CATV, DBS, DTT and IP. Publ 2000511