Tops in Boxes

Cable World, May 6, 2002

In addition to the extra juice, the 3200 boasts particularly forward-thinking engineering. Many of the 3200's functions, including graphics, are processed via dedicated integrated circuitry and not via the CPU, leaving more of the CPU's power available for digital services. "We redesign our set-tops every nine to 12 months," said an S-A spokesperson. "Ultimately, both the consumer and the operators find value in our new approaches."

On the thick-client end, S-A is introducing its Explorer 8000 Home Media Server, which offers nearly double the muscle of the 3200 with dual 32-bit, 150-MHz processors. The 80-GB hard drive allows consumers to record and store up to 50 hours of analog and digital programming using PVR functionality; PIP (picture-in-picture), VOD Web browsing, e-mail and t-commerce applications are also bundled in the unit. The 8000 is "fully backwards compatible" with S-A's legacy set-tops and head-ends and is expected to ship in June 2002.

Keen Personal Media's TV4me subsystem software will handle the 8000's PVR functionality. A component of Keen's complete TV4me PVR technology, the software allows for advanced ITV features such as live pausing, rewind and fast-forward, along with content management features.

Lastly, S-A hopes to meet the demand for HDTV with its Explorer 3100HD Digital Home Communications Terminal (DHCT). Six North American cable operators have already ordered the box, which is capable of decoding all 18 ATSC high-definition formats. Featuring a 32-bit, 130MHz microprocessor, the DHCT is capable of pinging data back and forth at speeds of 1.544 Mbps. The rollout of the DHCT may be a bit ahead of the curve, outstripping demand and eating up a sizable amount of revenues, but analysts are confident that HD decoders will be installed in the majority of deployed set-top boxes by 2006.

U.S. DIGITAL CABLE SET-TOP OVERVIEW (IN MILLIONS)

PIONEER

As a secondary vendor to Time Warner cable, Pioneer has earned a 9% share of the set-top market, placing it squarely in third place behind dominant Motorola and S-A, which enjoy a combined share of just over 90%. And while indicators are pointing toward a resumption of a boom cycle beginning next year, Pioneer seems wary of projecting rapid growth for itself. Mark Gurvey, VP-marketing for Pioneer Corp., says his company estimates global set-top sales of only 60 to 65 million by 2006 or 2007.

"We saw a dramatic economic slowdown beginning in June 2001," Gurvey said. "In that kind of environment, it becomes difficult for a consumer to justify the added cost of leasing or purchasing a set-top." While Gurvey believes the worst is probably behind us, he maintains that growth is likely to be slow to moderate over the next year or so.

With that in mind, Pioneer's cautious HDTV set-top rollout is understandable. The company's lone entry in the new box race is the Voyager 3511 HD, which features a built-in ATSC (Advanced Television Systems Committee) digital decoder with video outputs that can pass native 1080i signals (1,080 lines of resolution) - the highest resolution of HDTV to a video display. The 3511 had its debut at November's Western Show.