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Lincroft, NJ
reply to Russ6

Re: [STB] Cisco thinking of getting out of the set-top box busin

Found this press release on ACG Research's Service Provider Video Infrastructure (SPVI) market report:

ACG Research: Video Infrastructure Market Reaches $13.2B Worldwide
The impact by OTT video and multiscreen viewing is still slight but threatening according to ACG Research's recent market report.
PRWEB - February 24, 2012

"Cisco is the clear market leader in the Service Provider Video Infrastructure (SPVI) market. In the infrastructure segments (core routers, carrier Ethernet and CMTS), Cisco dominates these markets with approximately 60% market share in each. Cisco also has taken over as the leading STB vendor, based on its strength in IPTV STBs. Motorola is in second place, driven by its leading cable STB shares. Arris has a solid second place share in CMTS, and Alcatel Lucent takes second place in the routing segments.

While remaining in the low single digit in share of the market, Over the Top (OTT) and TV Everywhere (TVE, the viewing of videos on tablets, mobile devices, laptops and game consoles) continues to grow faster than the rest of the market. STBs are down slightly year to year, but much of this change is because of the increase in sales of lower cost devices such as DTAs and price pressures. CMTS sales remain strong, driven by increasing demand for data over the hybrid fiber coax systems of the multisystem operators.

“So far, the market and pay TV companies have not seen major impacts from OTT and TVE,” said David Dines, ACG’s principal analyst for video. “However, all the players in the ecosystem have launched or about to launch initiatives to compete with Netflix and Hulu,” he added. “Some examples include Streampix from Comcast, Verizon’s deal with Redbox, HBOgo, ESPN and Showtime.” Mr. Dines continues “This means that vendors will be pushed by the service providers to come up with solutions to deal with the additional complexity.”