The Decline of the Set Top Box Market

Set Top Box is a device that converts video content to analog or digital tv signals. For a long time, the set-top box was the cable box that sat on top of the tv. Although, TVs are now pretty slim and don't have flat space for a set-top box to rest on but still the name continues. 

A satellite tv set-top box is officially a satellite receiver, and the box that converts over-the-air digital broadcasts to analog for old TVs is a converter. 

Apple TV, fire tv, and android tv boxes connect to the home network for internet access and convert video from Netflix, Hulu, and other providers into TV signals. These media hubs go by many names and may accept local content from the home network as well.  

Although time has evolved and consumers are shifting from set-top boxes, the market still has some potential as it is been growing and is expected to grow further. According to a report by Astute Analytica, the Set-Top Box Market is doing decently well and is expected to register a CAGR (Compound Annual Growth Rate) of 2.9% during the forecast period from 2023 to 2031.  

The reason for this growth is people from rural areas around the globe are still upgrading to set-top boxes for the first time. But the people residing in urban areas have almost upgraded from set-top boxes to smart tv and smart hubs. This shows that after a decade or so, the market for set-top boxes may collapse.

Reason for Dying 

There are several reasons behind the death of the set-top industry which pulls us to the listed down points.  

• A surge in the number of streaming services, taking Netflix as an example. Netflix is the biggest on-demand streaming platform in the world and as of now, Netflix has over 214 million users across the globe. Meanwhile, cable TV service providers are losing millions of subscribers each year.  

• Streaming is All about Mobility, Flexibility & Convenience, streaming services win at accessibility. Users can now stream any show on smartphones and watch it anywhere through the Internet. Old school Cable TV is not that flexible. Without a cord, your cable TV service won't work. 

• Streaming platforms are more intuitive, knowing that you can skip the ads. Search and play the content you want to watch. Rewind, forward or pause. Unfortunately, cable tv service providers can't offer the same and can't make it as flexible as streaming platforms are.  

Limitations of Set Top Box 

There are a few disadvantages of set-top boxes which include, 

• Changing the service provider is not easy as the user has to pay the additional cost to buy a new Set Top Box from the new service provider. 

• One of the major problems for the subscribers of the Direct-to-Home service is unable to view any channel during heavy rains due to weak signals. 

Although the set-top box and the industry is pretty good when it comes to technological aspects, it lacks the current user demands. Also, the set-top boxes aren't keeping up with the competition's offerings. This will result in the market decline in the future. If the industry doesn't come up with something better, it may die soon.