ABI research results


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ABI Releases New Digital Set-Top Box Numbers: Gains By Scientific-Atlanta Linked To DVR; Next Hot Function: HD Tuners

OYSTER BAY, N.Y.--(BUSINESS WIRE)--Feb. 11, 2004--According to recent data for the worldwide set-top box (STB) industry, Motorola remained the market leader with 38% of all shipments in 2003. Scientific-Atlanta, however, has been gaining momentum and its market share is now at nearly 28% worldwide. Both Motorola and Scientific-Atlanta have a greater portion of the North American market where they are less threatened by their more worldly rivals Pace, Pioneer and Philips, observes technology market research firm ABI.

"The critical success factor for Scientific-Atlanta's strength in the set-top box market has been their strong showing in integrating DVR (digital video recording) functionality," states Vamsi Sistla, Director of Broadband Research at ABI and manager of the firm's Set-Top Box Quarterly Research Service.

Shipments by all vendors represented a 31% increase at year-end 2003 from the previous year. DVR functionality proved critical to market inroads in 2003, as cable MSOs, still the primary distribution channel for STBs, addressed the competitive threat from satellite vendors who were quicker to embrace DVR functionality.

But in 2004, high-definition TV is poised to be the critical market factor. Motorola announced deals for HD-capable STBs with Comcast last year, and most of the other vendors are making progress in the market.

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