"We are seeing a more pronounced dichotomy between full-featured boxes that are used by pay-TV providers to offer other services in addition to satellite TV reception and basic boxes for TV reception only," says Michelle Abraham, In-Stat analyst. "Advanced features include hard drives for DVR services, multiple tuners, more connectivity options, and high-definition decoding for receiving HD signals."

A recent report by In-Stat found the following:

- H.264 coding and 8PSK modulation are becoming common among providers for the delivery of HD signals; thereby increasing the demand for 8PSK demodulator ICs and H.264 decoder ICs in the set top boxes. - Connectivity options in advanced boxes today include USB in many DVR boxes and HDMI in most HD boxes. - More Ethernet connections in satellite set top boxes are likely in the future as more satellite pay-TV providers offer services in partnership with broadband providers.

The recent In-Stat research, "Digital Satellite Set Top Boxes", covers the global satellite set top box market. It includes analysis of the events influencing digital satellite set top boxes, new features being added, and how reductions in component costs are enabling less-expensive boxes. Five-year forecasts of unit shipments, ASPs, revenues, and bill-of-materials are provided by region. In addition, the research examines the expected growth of HDTV, DVR, and satellite/IPTV boxes.

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