The 2014 edition of The Cable Show is drawing to a close in Los Angeles, California. The event, hosted by the National Cable & Telecommunications Association (NCTA) and brings together thousands of internet and television professionals from around the world to network and discuss the future of entertainment.
Among many exciting announcements from this year’s conference is the introduction of a new range of set-top boxes (STBs) from LG Electronics. According to a release, the STBs “marry proven Internet-connected device platforms with flexible cable-centric applications to meet consumers’ varying entertainment needs and enhance their home TV experience. These products are designed to lower the barrier to connected home experiences for consumers, making the latest in home entertainment and automation more widely available.”
A smart STB allows a TV to become a user interface with the internet, meaning users can connect to the internet and stream online content to their TV. Many of these devices come in a portable dongle format, the latest one being Google’s “Chromecast”.
This move towards integration and smart home connectivity is one of the factors contributing to a 24.99 percent CAGR for the Smart STB and Dongle Market for the period of 2013-2018.
TechNavio analysts have compiled an in-depth list of trends affecting growth in this market.
Introduction of Integrated Smart STBs
Instead of purchasing a separate set-top box or dongle, users can buy a smart TV that is integrated with a smart STB, which allows them to directly connect to the internet, stream media, and access subscribed content.
Increase in the Number of Smart Homes
Many homes in developed nations are being revamped into smart homes, where consumer electronic devices and other smart electronics are connected to the home network and can interact with each other. Smart STBs and dongles play a major role in the functioning of smart homes, as they help stream media content via the internet direct to a TV or home entertainment system.
Increase in the Demand for Video Recording Features
Who has time to watch TV when it airs? Consumers want to be able to watch their favourite programs at their convenience. To meet this demand, STBs are being manufactured with additional capabilities, such as video recording features.
Growing Preference for Video on Demand (VOD) Services
Similarly, another major trend is the increasing preference for VOD services, since smart STBs help implement these services for customers. TV VOD systems decode content using smart STBs and allow viewers to record and save the content for future viewing.
Adoption of Over the Top (OTT) Standards
Until recently, live broadcasting was only possible through IPTV networks managed by service providers, but OTT can deliver video and audio data using the internet, without a service provider. As part of their exploration of new technology and revenue streams, operators are now trying to integrate OTT into smart STBs and dongles. OTT apps, such as Hulu Plus and Netflix, are becoming incredibly popular and the Global OTT Video market is expected to grow exponentially over the next five years.
Inclination toward Multiscreen Services
An increase in the number of smartphones and tablets globally has provided the opportunity for video services to grow in recent years, with consumers looking to stream video on a variety of devices without compromising the quality of the service. Smart STBs and dongles facilitate this multi-device streaming.
Rise in the Adoption of Cloud Services
Initially, watching a video was a device-based approach, but consumers are starting to switch to an access-based approach, which consists of subscribing to video libraries stored in the cloud.
The cloud is paving the way for easy, legal access to online videos and music. Cloud computing is rapidly being adopted by firms because it adds value in terms of portability, enabling subscribed users to access the digital content stored in remote servers irrespective of the devices they use. Smart STB and dongle manufacturers are expecting higher revenue generation as a result of these developments.
For more market insights, including drivers and challenges, view our Global Smart STB and Dongle Market 2014-2018 report.
