MRG, an SNL Kagan company that specializes in video and media ecosystem research, has released its latest report, “Demand for Home Media Gateway Set-Top Boxes on the Upswing.”
While home media gateway unit shipments continue to be relatively modest, the new genre set-top box is appearing in homes of a select number of pay-TV subscribers, says the report: “This box, which is often called a home media gateway, offers features that permit pay-TV service providers to better meet the needs of today’s connected consumer. Some key features supported by the home media gateway products are multi-room personal video recording, streaming IP video, and support for multi-screen video (“TV Everywhere”).”
Home media gateway products offer support for conditional access and TV tuning, with enhanced connectivity capabilities. These enhanced capabilities include support for home networking and “over the top” (OTT) video.
Key findings in the report:
–In 2013, global unit shipments of home media gateway products are on track to reach nearly 10 million, a solid increase from the 7.7 million units that shipped in 2012
–Revenues of home media gateway products are projected to reach nearly $3 billion in 2013, up from $2.3 billion in 2012.
–Home media gateway products have high average sales prices (ASPs), which make them attractive to set-top box manufacturers.
Currently, ASPs for home media gateway products are around $300 per box, which limit the penetration. Through 2015, MRG says virtually all home media gateway product deployments will be confined to North America and Europe.
Says MRG Senior analyst Mike Paxton: “Unit shipments of home media gateway products are on track to grow rapidly. However, the product segment is currently just a small portion of the worldwide set-top box market. For example, in 2013 home media gateway product shipments are projected to account for just 4% of total set-top box unit shipments.”
