Can Set-Top Makers Survive Tough Times?

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Can Set-Top Makers Survive Tough Times?

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The economic woes may be impacting set-top box makers, but according to one study the challenges are not catastrophic for the business.

In estimates released last week, IMS Research forecasted that, setting aside the U.S. DTV converter box program, set-top box revenues for the nation could decline 5 percent from 2008 to 2009. However, set-top volumes will actually rise, albeit at a relatively weak 9.3 percent annual rate during the same period, the firm said.

Globally, IMS Research forecast a 2 percent decline in set-top box revenues between 2008 and 2009 on 5 percent volume growth.

The ongoing transition to digital video, not only stateside but internationally as well, could help set-top box manufacturers survive the sour economy.

"While the market crisis has made financing an issue for some operators in developing regions, most are still pursing their digitization strategies, including HD and DVR rollouts that require new set-top boxes," said Anna Hunt, director of IMS' Consumer Electronics Research.
 
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