In-Stat has ranked Irdeto the top international provider of conditional access (CA) set-top boxes in China.
With a 17% share of the country\'s CA devices last year, Irdeto has established a strong foothold in populous provinces like Jilin and Shaanxi. According to In-Stat, total subscribers of digital cable TV in China reached 46.7 million at the end of 2008.
The growth potential is strong for China\'s pay-TV market. More than 70 cities have completed digitalization, and the STB box market is projected to peak in 2011 at $766.3 million as interactive STBs are expected to become a significant part of the Chinese market, said In-Stat.
Although cable operators are not generating substantial profits from TV content, there is strong market potential as In-Stat predicts an increase in operators\' emphasis to offer video-on-demand and premium channels when China switches to full digital TV by 2015.
In particular, opportunities abound for CA vendors that can provide high-performing, high-security solutions that will enable cable operators to introduce premium channels and advanced digital TV services to their subscribers, according to the firm.
Meanwhile, the global market for conditional access technology reached $1.3 billion last year and is forecast to increase by nearly $105 million until 2014.
According to a study by ABI Research, cable generated the bulk of the revenue, followed by satellite and telco. This can be largely attributed to new deployments in the cable market and the momentum this segment has gained in regions other than North America where cable and satellite are mature markets.
The continuing growth in digital entertainment production and consumption, combined with the expansion of new distribution methods will support steady growth in the technologies needed to protect that content. Other drivers include demand for secure high-definition content, and the ability to share content across multiple devices in a "connected" home.