Global research and consulting firm Strategy Analytics says Microsoft needs to quickly implement a more competitive licensing scheme if it wants to compete with Linux in the advanced set-top box (STB) market, expected to reach 40 million installed units worldwide by 2008.

The finding comes as part of the research firm's “Connected Home Devices” report, which notes that more manufacturers would consider Microsoft's CE .NET platform if it were competitively priced. The report finds momentum building behind Linux, which it calls “a leading contender to become the standard operating system in advanced set-top boxes, such as Digital Video Recorders (DVRs) and IPTV (Internet Protocol TV).”

Strategy Analytics notes that Linux already appears in the TiVo and other DVRs, as well as in many of the IPTV STBs used by telephone companies to deliver video-on-demand (VOD) and television over phone wires. “Linux is both sophisticated enough to support advanced functions, such as video recording and IP delivery, and economical since it does not require licensing fees,” notes Strategy Analytics.

Peter King, Director of the Connected Home Devices service, comments: “Device manufacturers are leaning towards Linux as the preferred solution for advanced set-top boxes, as evidenced by the recent Korean decision to establish the Linux IP Set-top-box Council. But Linux is not as free as it seems, since additional applications are often required, and development and integration work may add further cost.”

Strategy Analytics forecasts that nearly 40 million advanced set-top boxes will be installed worldwide by 2008. The majority will be in the US, where demand for Linux-based DVRs is likely to be strongest.

 
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