The Promise of “Built-In” Set-Top Boxes into TVs in Last Decade Never Materialized

Implications: 1.      In the source article, even an executive at Comcast acknowledges that the MSO does not “see STBs going away.” 2.      Cisco Systems has a vested interest in the market continuing to exist.   3.      There were assurances in the past of an embedded STB that never came to fruition.  

Analysis:  Back in the early 1990s, there were prognostications that the industry was a few years away of getting rid of set-top boxes.  (Interestingly, in 1994, two or more STB manufacturers were even testing modules that would do the exact opposite – replace the TV set.)  

Industry analysts are now questioning the veracity of the recent statement by Comcast CEO, Brian Roberts, that set-top boxes will be eliminated.  It does seem pretty clear that the MSO does not have any definite road map in place for an integrated STB.   

Another important factor in the mix is the position of influential player, Cisco Systems.  The manufacturer has a ways to go in recouping its heavy investment in Scientific-Atlanta.   

Sometime in the distant future there are likely to be built-in STBs into televisions when there is sufficient demand and when they will be available at a competitive cost.  The prices of HDTV sets will continue to decline and the STB functionality will eventually be available on a single chip.