Study Shows Digital Satellite Subscriptions Outpacing Digital Cable

Satellite Subs To Outpace Digital Cable By Over 80 Million In 2004

15-Feb-01

MRG, Inc. (Multimedia Research Group, Inc.) announced that the worldwide growth of digital STBs (set-top boxes) should exceed $11.5 billion in annual sales in 2004, driving the installed base (worldwide) to over 140 million. Growth of related digital services should exceed $11 billion (annually), resulting in aggregated new revenues of over $54 billion by 2004. Most service revenues will come from advanced versions of electronic program guides (EPG), personal video recorders (PVRs), video-on-demand (VOD), interactive TV (ITV) and pay-per-view (PPV), based on numerous return-on-investment (ROI) analyses conducted. Most new subscriptions will go to DTH, which has already launched aggressive worldwide programs incorporating these new digital services. The list of over 40 key companies profiled includes industry innovators like NDS, Sony, TiVoÆ, Motorola, Microsoft, Pace, Sarnoff, DIRECTVÆ, EchoStar, Hughes, Philips, Broadcom, Intel, National Semiconductor, Liberate, OpenTV, nCube, AOLTV, WebTV, Scientific Atlanta, Thomson, CacheVision, NBC, Wink, RespondTV and many others. The new study, ""Home Gateway Report: Worldwide Digital Set-Top, Service & Server Analysis & Forecast - 2001-2004,"" reflects how advanced PC and communications technologies, married with open STB (set-top Box) architectures, have created a new industry more like that of cell phones than of PCs. ""Never before have we seen the 200- and 400-times performance jumps in digital processing for the STBs that we've witnessed since 1995,"" comments analyst Chris Schwafel. ""The emergence of the PVR (personal video recorder) to meet strong demand for more leisure time is changing the basic economics of video broadcasting,"" adds Gary Schultz, Director of Research and CEO. By showing ROI scenarios for digital cable, satellite and terrestrial carriers, the report reveals how digital cable could reverse its losses to digital satellite, and how almost any carrier can reach profitability within six months by transmitting VOD over unused bandwidth. The 325-page report also provides results of consumer and supplier surveys on home gateways and networks. The report is available for $3,495. For information, visit www.mrgco.com.

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