As part of my role as an IPTV Analyst, I keep track of over 100 vendors that are part of the entire IPTV ecosystem. That includes lots of software and hardware equipment, like VOD servers, video head-ends, and middleware. One of the largest fields is set-top boxes.
Currently at MRG, we track over 25 worldwide suppliers of IPTV set-top boxes. There are many big name companies, but also smaller ones from countries like China, Turkey, France and the U.K.
Unlike U.S cable companies where Cisco and Motorola have a huge advantage, IPTV is still relatively open and does not have worldwide standards. As a result, any company can release a STB with or without a hard drive.
Recently, I read the Pirelli Broadband was looking to sell its set-top box business. That’s not a surprise since STBs are now becoming a commodity. Pirelli is perhaps best known for its tires (and perhaps its calendars) but its broadband division supplies set-tops to a number of Service Providers, especially in Italy.
Here in the U.S., set-top boxes are subsidized by the cable, satellite and IPTV firms. But there’s still a retail market for products like Tivo, Roku, and soon, Google TV. In the U.K. and Italy, set-top boxes are sold at retail outlets, so consumers have a lot more choice when it comes to getting a new box.
In the last year or so, there have been lots of new technologies coming to IPTV set-tops. Here are some of the top new trends I’ve seen:
- Solid State Hard Drives. The newest models are now coming with solid-state hard drives, rather than the traditional drives with moving parts. Moving to flash-based solid state drives means faster speeds, since hard drives are usually the slowest part of any computer. Using solid state storage increaseses the cost (at least initially), but the box can be smaller, and quieter. Traditional hard drives also have a high failure rate compared to flash memory. Solid State Drives (SSDs) are still very new, so very few STB manufacturers are using them yet.
- Hybrid Connections. Most IPTV boxes today come with more than 1 TV input. There’s an Ethernet port (naturally), but also coax for over-the-air signals or even for satellite. These STBs are called hybrids because they can connect to a variety of different inputs, so that Service Providers can deliver over-the-air signals, satellite, and Internet video from one box. Cable boxes, by contrast, usually just have 1 coax connection, and don’t have Ethernet connectivity.
- Home Networking Connections. The landscape for home networking is still evolving. Sure, Wi-Fi is popular but new standards are still emerging for wired connections (including power lines, phone lines and coaxial cables). Today, the IEEE and ITU have passed similar but competing wireline home networking specifications. The IEEE has passed P1901 (based on the HomePlug AV specification), while the ITU passed its G.hn spec recently. STB vendors have held off carrying either of these technologies inside their boxes, because the two specs are not interoperable. And offering both would be cost prohibitive. So for now, it seems like Wi-Fi is the next logical step.
- Built-in WiFi. Surprisingly, most IPTV set-tops don’t come with wireless connectivity. Manufacturers want to keep the price of boxes low, so they leave out components that most consumers find indispensable. That means that consumers have had to buy dongles for their boxes, to connect Wi-Fi adapters. It’s not a great solution, but it works. It also passes along the cost to the consumer. Newer set-tops are coming with built-in Wi-Fi. Airties, is one company that I can recall that comes with Wi-Fi.
- Intel Processors. Set top box company Amino Communications showed off the first Intel-based box earlier this year. Why is that a big deal? It essentially means the box is like a netbook–it comes with more storage, more RAM and is faster than ordinary set-tops. The Intel chip (while more expensive than regular STB chips) allows processor intensive applications, like Adobe Flash. That means consumers will be able to watch Hulu on their TV sets. Clearly, Intel is looking to stay relevant with consumer electronics devices, like set-top boxes, and even mobile devices.
Bonus: This quick piece about how Solid-State Drives are much faster when it comes to boot-up and start times, but almost no PC manufacturers are using them yet.
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