MPEG-4 AVC set-top box shipments surpassed MPEG-2-only set-top box shipments for the first time in 2010, with about 53% MPEG-4 shipments worldwide. Despite the support for advanced encoding, however, pay-TV operators worldwide have been slow to support interactive features on set-top boxes.
Historically, they have only allowed managed video services, such as video-on-demand, along with a very few token applications such as weather, traffic and sports into their walled gardens. High-end boxes that shipped this year in the US and Europe will enable higher levels of interactivity, including next-generation EPGs (electronic program guides) and hybrid services, with many services slated to launch in early 2011.