As the global Set Top Box (STB), market grapples with a volatile memory price crisis, that began six months ago, EKT – your STB partner has reported a significant surge in demand for its Linux-based IPTV/OTT and hybrid Set Top Box (STB) solutions.
The ongoing crisis has sent shockwaves through the industry, particularly impacting the Android STB market. Devices that traditionally retailed for $30 have seen costs skyrocket to nearly $100. In contrast, EKT’s proprietary Linux-based architecture requires significantly less memory to operate than heavy Android-based counterparts, allowing EKT to bypass the most severe price hikes and offer a more stable, cost-effective solution to operators worldwide.
A marketing realignment
Richard Smith, CEO of EKT, believes the industry is currently in a state of «wait and see,» which may prove to be a strategic miscalculation for many.
«I think many Android-based operators will hold off ordering new STBs for the next six months, believing that the current memory crisis is temporary,» said Richard. «In six months’ time, they will realise that the new pricing is here to stay. They will realise they need to order new Set Top Boxes, and EKT’s Linux product can offer a robust, affordable solution.»
Security and efficiency advantages
Beyond cost savings, the shift to Linux may provide a timely opportunity for operators to address growing concerns regarding content security and infrastructure costs. Many Android-based operators currently utilize compromised Digital Rights Management (DRM) systems, leading to:
– Revenue loss: High levels of content piracy.
– Infraestructure strain: Massive amounts of CDN capacity being consumed by unauthorized users.
By transitioning to EKT’s Linux solution, operators can implement more secure DRM protocols, reclaiming their bandwidth and protecting their bottom line.
Revitalizing cable expansion
The market shift is also prompting a strategic pivot for traditional broadcasters. Richard noted that the crisis is causing a re-evaluation of long-term roadmaps.
«Some of our DVB cable operators, who previously decided to stop ordering new cable STBs in order to focus solely on OTT, may now decide to resume traditional cable network expansion again,» Richard added. The efficiency of Linux-based hybrid boxes allows these operators to maintain their legacy infrastructure while still providing a modern user experience without the prohibitive costs associated with current high-memory hardware.
