Shipments of DTV, cable, satellite and IPTV set-top boxes (STB) are expected to peak at about 110 million units in 2012 before beginning a gradual decline, according to a report released Wednesday by market research firm ABI Research,

“The STB won’t disappear as a result of threats from other set-top devices,” said Robert Clark, ABI's principal analyst. “But in the DTT sector where the needs are more basic, there is an opportunity for STB component integration into newer flat screens."

Set-top sales are also expected to decline as more and more developed countries complete the switch to digital terrestrial television, ABI said.

The outlook for set-top revenues, on the other hand, isn't quite so long term. According to the ABI report, set-top revenues for all platforms have declined steadily since 2007 as costs have gone down. The good news is revenues are expected to recover by 2010 and remain relatively stable through at least 2013.

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