New Release | Ciscos Move to Selling Set-Top-Box Business and Its Implications

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The global STB (Set-Top Box) market has undergone several M&As so far this year, including the acquisition of UK-based STB brand Pace in April by Arris, a tier-one supplier of full-line broadband communications equipment, for US$2.1 billion. Later in July, Cisco announced that the company signed an agreement with Technicolor, a European broadband communications equipment brand, under which the latter will take over Cisco's STB and cable modem businesses. This report provides an overview of Technicolor's acquisition of Cisco's STB business and examines motivations behind such move, and its impacts on the global STB industry.

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Table of Contents

1. Background

2. Motivation Analyais

2.1 Price Competition in the US STB Market to Intensify

2.2 IPTV Growth Cools Down as Major Carriers Switch to Mobile Video Service

2.3 Cisco Strengthening Mainstay Products to Counter Market Changes Led by SDN and NFV Technologies

3. Impact Evaluation

3.1 Influence on Market: Video Service Market Leaning Towards Direct-to-Customer Model

3.2 Influence on Industry: Cisco Takes Aim at Cloud-based Video Market

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