Government Policy Spawning Digital Cable Set Top Box Boom in China Reports In-Stat.

SCOTTSDALE, Ariz. -- The deployment of Whole System Shift, a government effort to speed up the conversion of urban households from analog to digital cable TV, is driving China's digital cable set-top box (STB) market, reports In-Stat (http://www.in-stat.com). As a result, unit shipments of digital cable STBs are projected to quadruple, from 3 million in 2005 to 12 million in 2010, the high-tech market research firm says.

"Most of the digital STB shipment increases will come from basic set-top boxes," says Rebecca Tan, In-Stat analyst. "Most cable operators that are now installing Whole System Shift provide only basic services, and networks have not yet begun to install two-way networks. Operators' ability to provide interactive services is limited in the short term; therefore, operators prefer basic boxes."

Recent research by In-Stat found the following:

* Following several trials of Whole System Shift, the digital-cable TV subscriber base jumped dramatically from 800,000 to 2.7 million by the end of 2005.

* There will be steady growth in advanced-box shipments, reaching 1.5 million by 2010.

* Total revenue of cable STBs in China is projected to reach US$586 million by 2010.

The research, "Digital Cable STBs in China" (#IN0603228CCM), covers the Chinese market for cable TV set top boxes, with insightful analysis on China's cable TV digitization process. It also provides average selling price, unit shipment, and revenue forecasts of digital cable set top boxes in China for 2006-2010. Key domestic set top box vendors are profiled.

For more information on this research or to purchase it online, please visit:

http://www.instat.com/catalog/Ccatalogue.asp?id=240 or contact a sales representative:

Eastern North America: Tina Sheltra, 480.609.4531; [e-mail]

Western North America: Erin McKeighan, 480.609.4551; [e-mail]

Outside of North America: http://www.instat.com/sales.asp

The price is $2,995 (US).

This research is part of In-Stat's China Consumer/Convergence Service, which takes an in-depth look at the markets for and production of consumer devices such as digital cameras, digital TVs and personal media players. From the consumer perspective, ownership, buying behavior, interests, and consumer product demands are examined. From the manufacturer perspective, competitors, business models, market shares of key suppliers, industry agendas, shipment/deployment of consumer equipment and products are analyzed. Also covered is the digital home in China. These market views, in addition to a services perspective in segments such as IPTV and online music and gaming services make this a very well-rounded and unique service for anyone interested in consumer market opportunities in this monstrous market.

Related research includes:

* The Digital Home in China Next Step: Be Networked to Entertain (http://www.instat.com/abstract.asp?id=240&SKU=IN0603217CCM)

* China Consumer Attitudes Toward Home Networking (http://www.instat.com/abstract.asp?id=240&SKU=IN0603314CCM)

* Online Gaming in China: More than Fun and Games (http://www.instat.com/abstract.asp?id=240&SKU=IN0602619CCM)

About In-Stat

Technology vendors, service providers, technology professionals and market specialists, worldwide, rely on In-Stat's experienced staff and in-depth research to support critical business, product and technology decisions. In-Stat's insights are derived from both a deep technology understanding and comprehensive research, which examines each segment of the value chain for each market. Regular and ongoing end-user demand and primary research surveys underpin much of the analysis, enabling In-Stat to provide incisive market knowledge and guidance on future market opportunities.

In-Stat is a strategic segment of the $9 billion Reed Elsevier global information network, with access to an expansive worldwide electronic network, extensive technology databases and well-informed personnel. As a member of Reed Business Information, In-Stat is a division of the largest business-to-business publisher in the U.S.