ABI Releases New Digital Set -Top Box Numbers: Gains By Scientific -Atlanta Linked To DVR

According to recent data from technology research firm ABI for the worldwide set-top box (STB) industry, Motorola remained the market leader with 38% of all shipments in 2003.

Contact: Jake Wengroff

(516) 624 -3113, ext. 20

ABI Releases New Digital Set -Top Box Numbers: Gains By Scientific -Atlanta Linked To DVR

Next Hot Function: HD Tuners

OYSTER BAY, N.Y. - - February 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.

But the long -term play here may not be a STB at all. "With the Federal Communications Commission mandate to migrate all digital TV tuners directly into TVs by 2007, and recent digital interoperability agreements between the National Cable and Telecommunications Association and the consumer electronics industry, known as 'plug and play,' it is likely that STBs as we now think of them will cease to exist and be replaced by a new device," adds Mr. Sistla. "What will the new device be? Simply a standalone DVR? A DVD recorder with DVR functionality? Or a media gateway? This is the next big question."

Coverage of digital STB, digital satellite receiver, and IP STB shipments is available through ABI's Digital Set -Top Box Quarterly Service (STBS). The information service provides timely data on the market for advanced digital set -top boxes used in CATV, DBS, and video -over -DSL markets. This service examines the global trends in shipments, revenues, and penetration of advanced features for various distribution networks, including digital cable, DBS, terrestrial, and DSL and IP -based networks.

About ABI
ABI is a N.Y. -based technology market research firm founded in 1990. ABI publishes market research and technology intelligence on the wireless, automotive, electronics, broadband and energy industries. Details can be found on the web at abiresearch.com or by calling 516 -624 -3113.

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