As manufacturers race to incorporate the latest digital technologies for pay-TV, worldwide shipments of digital set-top boxes will grow substantially through the end of the decade. In a recently published update to its online Television Database, IMS Research forecasts that worldwide shipments of digital cable and DTH set-top boxes will increase by 15% over the next five years, approaching 74.8 million units by the end of 2010.

According to analyst Mark Meza of IMS Research, "The desire for increased functionality and utilization of interactive services offered by cable and satellite providers will fuel demand for set-top boxes that feature DVR capabilities and advanced compression technologies like MPEG-4/H.264. As the number of high-definition channels offered in programming packages increases, the need for advanced HD set-top boxes will further affect demand."

Interestingly, increased digital service offerings, and the capability to use them, depend largely upon the operator?s ability to reduce the cost of the set-top box to the consumer. Meza states, ?In an effort to increase consumer access to new compression technologies and high-definition content that involves costly decoders, operators will look for ways to provide set-top boxes that the average consumer can afford.? Lease-only equipment programs and downloadable conditional access systems are just a few of the ideas on operators? cost-cutting horizons.

The IMS Research online Television Database is one of the most detailed and comprehensive analyses of the digital television and set-top box markets, including over 60 countries. It is updated quarterly throughout the year, and more frequently if significant market changes occur. Hence, it provides subscribers with a convenient way to access the latest digital TV statistics, and set-top box and integrated digital TV market estimates and forecasts, as market conditions evolve.