'Free-to-air' powering growth of satellite TV boxes

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Shipments of digital satellite enabled set-top boxes will continue to grow worldwide through 2008, fuelled by increasing demand for 'free-to-air' (FTA) boxes, according to a new report.

The report's author, In-Stat/MDR, said the popularity of FTA boxes will carry overall shipments of set-top boxes to 65 million this year and to 71 million units by 2008.

"The growth in free-to-air set-top boxes has to do with the pricing of the boxes coming down and becoming more affordable for more homes, especially in Asia, Africa and the Middle East," commented In-Stat/MDR Senior Analyst Michelle Abraham. Falling component prices have led to price drops.

Shipments of FTA boxes will outpace those of pay-TV boxes this year, the survey said, hitting 36 million units, compared with 29 million. FTA boxes also outsold other variants in 2003.

FTA boxes aside, overall growth in shipments of all digital satellite receivers is also being driven by other factors, including a rise in the number of boxes per household in North America, users swapping out their set-top boxes in Europe following technology consolidation, and new satellite services in India, the survey said. In addition, improved video compression will have an effect, and lower component prices are bringing down the cost of pay-TV boxes as well.