Introduction to the Set-Top Box

The term “Set-Top Box” (STB) refers to devices that connect to a television and some external broadcasted signal source. The Set-Top Box demodulates the broadcasted signal into audiovisual content that can either be displayed on a monitor or captured and recorded. The broadcasted signal source can be sent via satellite, a cable connection, a telephone line, or an ordinary VHF or UHF antenna. Content may include any combination of video and audio formats, internet web pages or interactive games.

Evolution of the Set Top Box

The STB industry has its roots in the “cable box” legacy device, where a user can use a hand-held remote control to communicate with this device to select among a wide range of analog television channels. Over time, as the networks and service providers added additional digital channels, satellite broadcast services, internet access and other options, the STB was introduced in the market to support all of these new channels and services brought about, for the main part, by technological advances. In recent years, the rise in digital consumer services is quickly transforming the STB into a multifunction device. With the advent of digital television and high definition TV’s, the broadcasting and reception of high quality video is now possible. Today’s digital broadcasts use all three main media: cable, terrestrial antenna and satellite. Each medium has its own scheme of transmission, reception, and error correction methods. Previously, communication was unidirectional from the service provider to the STB, and an analog television was at the output stage of the STB. Currently, it not only maintains legacy functionality but also provides a bi-directional communication channel with the service provider, as well as outputting a digital television signal for modern TVs. Some intended features of an STB include controlling home appliances, using the television as a display monitor and the use of a data modem to carry control commands from the Set-Top Box back to the service provider. To realize these advanced features, today’s digital STB units are being equipped with powerful microprocessors and sophisticated hardware.

The STB Market

In the last decade, there has been an extremely rapid growth in cable and satellite STB market due to the advanced features, supported media, and ease of billing. It can be observed that since 1998, there has been tremendous popularity of satellite and cable boxes that has stimulated demand for this technology. Statistics show, a clear trend that there is an increase in the unit sales while the $/unit value of each STB has decreased significantly, further stimulating demand for this technology. Demand for digital cable Set-Top Boxes continues to be strong in 2006. An increasing number of cable TV operators around the world are ordering and deploying cable Set-Top Box products, particularly in conjunction with digital cable video service and with new high-definition and interactive TV services.

Rise in demand in 2006 comes after the digital cable Set-Top Box market experienced a record year in 2005. Led by increasing demand from North American cable TV operators and new deployments by Chinese TV cable operators, total worldwide unit shipments in 2005 reached 15.5 million, an increase of 44% over 2004.

The worldwide retail value of all Digital Terrestrial (DT) Set-Top Boxes will "blast off" during 2006, and revenues are expected to reach more than US$ 10 billion during 2009.