The set-top box market is undergoing a profound transformation with the advent of new options for accessing pay-TV and premium-TV channels. Until a few years ago, most customers could receive these channels only from a local cable company or a satellite company. Now, many options exist for using video devices attached to TVs and video products (smart TVs) to access the same channels without a set-top box. Furthermore, these new methods for accessing traditional TV also offer an expanded choice of new channels streaming over the Internet, and with many carrying award-winning programs.
This report explains these changes and examines how set-top box makers and cable operators are adjusting by establishing new business relationships and adding features to the set-top box that may help retain customers.
Bottom Line
History and Evolution of Set-Top Boxes
Competing Approaches to Delivering Premium Video Content
Set-top Box Supplied by the MSO
Linear TV
Internet TV
Cloud-Based Set-Top Box
Set-top Box from Third Party and Cable Card from MSO
Streaming Interfaces
Connected Video Devices
Streaming Media Players – a Set-Top Box Alternative
Smart TVs – an Existential Threat to Add-On Video Products
Set-Top Box Advantage: Quality of Service
Extending Set-Top Box Features with Middleware and Apps
Set-Top Boxes with Android TV Middleware
Set-top Box User Experience Features
Pay-per-View
Electronic Program Guide (EPG)
Anytime/Anywhere Viewing
The Remote Control Unit
Apps, Widgets, Internet, and Home Automation Features
Set-Top Box Management Features
Streaming Services
Streaming Pay-TV (vMVPD)
Innovations in Set-Top Box Monetization
Strategies for Retaining Set-Top Box Customers
Focus on Content and Set-Top Box features
Compete with Streaming Equipment
Responses by the Industry
The Future of Set-Top Boxes
Implications and Recommendations
Penetration of Traditional Pay-TV vs. OTT Video Services (2017-2020)
Adoption of Connected Video Products
Most Commonly Used Streaming Video Devices (2018-2020)
Pay-TV Service Features Received
STB Optional Features
STB Management Features
Top OTT Subscription Services in the US (Q1 2020)
Weekly Average Video Consumption via TV (2015-2020)
Monthly Use of Pay-TV Features
Traditional and Online Pay-TV (vMVPD) Service Adoption
Age Breakout of Set-Top Box Owners vs. Non-Owners
© May 2020 Parks Associates
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Printed in the United States of America.
Disclaimer
Parks Associates has made every reasonable effort to ensure that all information in this report is correct. We assume no responsibility for any inadvertent errors.
