The IP set top box market almost doubled in 2007 reports In-Stat. North America was one of the fastest growing regions, as AT&T ramped up the pace of installations. The impact of these subscribers on the set top market was enhanced due to the fact that most North American subscribers need multiple boxes.

“IP set top box hardware features are now stable, with the exception of the integration of home-networking technologies,” says Michelle Abraham, In-Stat analyst. “New features will come in software, rather than hardware, in the future.”

In-Stat considers that falling box prices will cause annual IP set top box revenues to remain about $2 billion once they reach that level in the future and that home-networking technologies are being integrated into IP set top boxes on a deal-by-deal basis.

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