Digital TV price war will benefit set-top box manufacturers

Digital TV price war will benefit set-top box manufacturers
Richard Wilson
A price war in the digital TV receiver market has broken out with the announcement that satellite broadcaster BSkyB intends to offer free set-top boxes to digital TV subscribers.
The move by the digital TV market leader looks likely to prompt digital terrestrial TV broadcaster ONdigital to subsidise its set-top box receivers in a similar fashion.
BSkyB, which has been seeing receivers for around ?200, claims to have over 500,000 subscribers to its digital TV service that was launched last October. Last month rival ONdigital said it had 110,000 customers for its terrestrial service.
Set-top box manufacturers like Pace Micro Technology, Grundig and Philips will be the main beneficiaries of a price-war in which the broadcasters subsidise the cost of the receiver to the customer as part of a new service package.


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