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Retail Set Top Box Market May Be Viable, Says Yankee Group

Retail Set Top Box Market May Be Viable, Says Yankee Group

According to the Digital Home Entertainment Survey, a recent report from the Yankee Group, 30% of US consumers are likely to purchase an advanced cable set top box (STB) through the retail channel, provided the cost did not exceed $350. It is thought that set top box purchase, as opposed to renting which is common amongst most cable television consumers, may reduce churn and make customers more loyal to their cable operator.

Amongst cable operators’ ‘highest-value’ customers, the willingness to purchase advanced set-top boxes was even greater with 61% of respondents with multiple STBs indicating that they would be likely to buy up to the $350 price point. These consumers typically spend more than average on communications and entertainment services making them an appealing market for advanced STB retailers.

“Retail sales of advanced set-top boxes would more closely align the near-term deployment costs and future revenues of enhanced applications,” said Yankee Group analyst Dominic Ainscough. “Aggressive moves to support the development of retail set-top boxes would open the door for cable operators to more rapidly deliver a broad range of applications that leverage their presence in the connected home.”

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