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STB shipments to SAARC up 20% in Q2

From SD STBs to HDTV and hybrid boxes, the STB market in major SAARC (South Asian Association for Regional Cooperation) countries is witnessing steady and robust growth, as digitisation in India and other countries in the region is propelling the demand for STBs.

According to research from Dataxis, STB shipments to SAARC countries have witnessed 20 per cent quarter-on-quarter growth during the second quarter of 2015. In Q2 2015, 4.38 million STBs were shipped in the SAARC region with an estimated value of $96 million.

India leads the STB shipments for the period, accounting for about 94 per cent of the total shipments to the SAARC region in the June ended quarter of 2015, according to the Dataxis analysis.

The Dataxis research also finds that the quantity of the STB shipments to the country in H1 2015 has declined compared to the same period a year ago, however, the total number of STBs shipped in Q2 2015 has registered an increase on quarter-on-quarter basis.

Technicolor tops the STB shipments to SAARC in the Q2 2015. The company’s recent deal to acquire Cisco’s STB unit could further bolster Technicolor’s presence in the SAARC STB market.

Local manufacturing in India, which accounted for just 5 per cent of total STBs sold during the first and second phase of seeding, is showing steady growth in the third phase. Dataxis estimates that the sale of made-in-India STBs will witness growth up to 15 per cent in the fourth phase of digitisation.

“Local manufacturing in India, which got a shot in the arm with the Indian government’s make-in-India initiative, is slowly picking up as indigenous brands are signing deals with MSOs in third and fourth stage. The local STB brands are opting to independent, regional MSOs than the Pan-India MSOs or national players.” says Sreeja Vn, Dataxis analyst.

Airtel Digital TV, Dish DTH and Videocon D2H, the three major DTH players have announced their plans to focus on deploying indigenous brands, which will give a boost to domestic manufacturing of STBs in India. The first half of the 2015 also witnessed the DTH players partnering with Indian brands to source STBs manufactured indigenously.

Another notable trend, according to the Dataxis Research, is the increasing demand for HD STBs in the region. Dataxis’s analysis of STB shipment for the H1 2014 and H1 2015, depicts steady growth in the volume of HD STBs shipped to India. The rise in the number of HD STBs has also contributed to a rise in the average selling price of STBs shipped in the first half of 2015 compared to the same period last year.

Key STB vendors for the quarter are: Technicolor, Skyworth, Changhong, Huawei and Coship (international Vendors), and Mybox, One-eIGHT technologies, Trend Electronics, Ridsys, and Willet Communications (Domestic Vendors).

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