Executive Summary

The purpose of this report is to identify the different hybrid STB (set-top box) products being used in the global IPTV (Telco TV) and Cable market, assess the business models available to Service Providers (SPs), and to analyze the business models and market drivers behind the entire hybrid sector. The report also analyzes market size and growth for 2008-2012 for hybrid STBs by region and type; and measures the quality of the hybrid service business models. By doing strength/weakness analysis on the various hybrid business models, the report allows SPs to objectively measure which plan can work best for them; and allows vendors to understand the strategic environment in which each configuration of hybrid STB works best.

Market STB data includes global analysis of Cable and IPTV operations using hybrid STBs, plus a county and regional break-out by broadcast type (QAM, DTH, DTT).

This report, drawn predominantly from the perspective of the STB vendors and IPTV Service Providers ("SPs" or "Operators"), consolidates opinion regarding the current prevalence of (and future prospects for) the use of hybrid STBs in the delivery of IPTV services. (1)

In addition to highlighting where there is consensus among the STB community, the report also discovers where there is significant variation in opinion, and strongly-held minority opinions which represent an interesting counterpoint to the majority view. These minority views are presented also, in order to fully inform any potential debate a vendor or Operator may have when considering a hybrid strategy.

Three different hybrid STB types (Satellite, Off-Air and QAM [Cable or IPTV]) are examined worldwide, and two different hybrid strengths are examined: "high-end" and "low-end" hybrid STBs; also, three different configurations are analyzed.

Included is the results of a summary of industry reports on the relative importance of each of the 10 market drivers (motivations) for using hybrid STBs instead of traditional (Cable or IPTV) STBs.

Above in Figure 1-1 are the drivers of use of hybrid STBs, as examined in the report, and ranked by percentages (not shown here).

The dual input hybrid STB configuration in Figure 1-2 (above) is the most common and for handling broadcast inputs: Satellite (DTH), Cable (QAM) or Terrestrial (DTT/DVB-T).

Figure 1-3: Configuration: Hybrid Cable STB with Internal Cable Modem

A single coax input for both IP and broadcast services in sometimes used, as shown above in Figure 1-3.

Figure 1-4: Configuration: Pure IPTV STB with External Gateway

Figure 1-4 configuration illustrates how a “high-end” hybrid STB can work with or without a separate broadcast input, using a separate home gateway. This configuration in Figure 1-4 illustrates how a pure IPTV STB can also provide full IP broadcast/on-demand services with or without a separate broadcast input.

Table 11-1 shows a sample of operator-by-operator view of installed hybrid STBs used plus projected growth for each operator plus by region (Asia, Europe, North America, and ROW).

(1) While this report examines primarily the Telco-based IPTV Operators, it also examines opportunities for Cable Operators to adopt hybrid technology.

(2, 3) If used for digital off-air in the U.S. or other ATSC countries, 8VSB modulation is used instead of QAM or QPSK. QAM and QPSK are variations of the COFDM modulation scheme.

This report is part of the IPTV Tracking Service published by the Multimedia Research Group, Inc.

Who Should Use This Report

• Media executives wanting to find new distribution platforms.
• Service Providers working in highly competitive markets.
• CapEx equipment vendors looking to develop new products and configurations.
• STB vendors looking for new global markets.
• Terrestrial broadcasting executives looking for new revenue streams.
• Satellite broadcast executives looking for new revenue streams.
• Cable and IPTV managers making important short- and long-term decisions.
• Semiconductor executives in digital media industries.
• Investment executives looking for early trends on global markets.

Table of Contents

Table of Figures

Table of Tables