DTV Equipment Costs To Fall Below £30 By 2007

The cost of digital TV set-top box equipment could fall as low as €36 (£27) by 2007, as fierce competition in the supplier market continues to drive down prices, according to a new report from Strategy Analytics.

Demand for digital terrestrial TV (DTT) services is starting to look much stronger in Europe, with the UK’s Freeview being a notable success. Strategy Analytics predicts that there will be 3.7 million European homes taking DTT services by the end of this year.

This demand is being driven partly by the falling cost of equipment. As set-top box prices are pushed down by competition, the report advises manufacturers to develop multi-platform and combination products, such as personal video recorders (PVRs) and DVD recorders, in order to sustain revenue growth.

“Prices like these could change the economics of the digital transition,” says David Mercer, principal analyst at Strategy Analytics. “Governments around the world are keen to recover analogue spectrum, but they should also note that substantial public subsidies will still be required in order to encourage universal digital adoption.”

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