08.07.2007 — A new study shows that the set-top box (STB) market will grow steadily through the end of the decade, fueled by interactive features, PVR functionality and the possibility of retail STB channel.

The "Worldwide Set-Top Box Market Analysis," conducted by market research firm ABI Research, predicts that the spike in sales will subside by 2010 when consumers complete the upgrades to their home entertainment systems.

"There's a war going on in the trences for TV customers," says ABI Research vice president and research director Stand Schatt. "In an effort to lock in customers, cable operators are migrating to newer STBs that offer features such as personal video recorders [PVR] and high definition support. Meanwhile, telecom operators are leveraging IPTV technology to support interactive services."

An STB retail channel may develop because of the government's mandate for security features to be separated from the box and in CableCards instead, ABI suggests.