The hybrid set-top box market, although still small today, is forecast by IMS Research to account for over 25% of worldwide STB unit shipments in 2012, translating into nearly $2.9 billion in manufacturer revenues. Based on leading satellite TV operators’ strategies to strongly position themselves against competitors, satellite hybrid STBs are forecast to account for 76% share of all hybrid STB units shipped worldwide in 2012.

Based on a newly published study, Hybrid Set-top Box Developments and the Impact of Other Hybrid Equipment, IMS Research identifies that many major operators worldwide, particularly on satellite and IPTV platforms, are quickly transitioning to hybrid STBs as rivalry in triple-play intensifies. Furthermore, competition from non-traditional content providers and service aggregators is also affecting traditional pay-TV providers. Anna Hunt, Research Director and report author, comments, “Over the next five years, many companies will be focusing to seamlessly move PC-based video content or integrate Internet-delivered video services into the home entertainment center. As a result, traditional pay-TV operators are exploring new business models, including rollout of new services and more content via hybrid STBs, in order to strengthen their position in the digital TV market.”

Additional key drivers behind hybrid STB rollouts include:

• TV operators’ ability to reclaim bandwidth for premium content by deploying a hybrid box.
• Diverse “must carry” regulation and varied rebroadcasting rights set by terrestrial broadcasters.