UK reaches digital TV maturity: US next for Pace

UK set-top box maker Pace Micro has set its sights on the US market, predicting the UK market for digital television is approaching maturity.

Pace Micro yesterday reported a year on year rise in pre-tax profits of 59 per cent from £24m to £38.1m for the fiscal year ending 2 June. However, in order for this growth to continue the company must maintain the high demand for its products and find outlets outside the UK where growth in demand looks set to fall.

Set-top box technology has not made much of a dent in the US tradition of cable television provision as competition has been slow to materialise leaving prices high and demand low.

But with the US audience already acclimatised to paying for their television and contracts in place with cable operator Comcast and media giant Time Warner Pace Micro is well positioned to break into the US market.

Pace Micro's results took account of a £4.53m charge incurred for redundancies resulting from ceasing manufacturing operations at its plant in Shipley, West Yorkshire in order to concentrate on research and development.

According to the Financial Times production will be outsourced to Brazil, China, the Czech republic and Mexico where it can make the most of cheap labour.