In a cost sensitive consumer electronics market, the most cost-efficient implementation of the digital satellite set-top box is required in order to be competitive. The system functionality and the implementation rational of the set-top box is described. Tradeoffs regarding hardware vs. software implementation are examined. Examples of how the system design affects the size and bandwidth of the memory requirements are given. Although the current generation of processors are capable of implementing real-time video decoding, they still are not a cost-effective solution for the digital set-top box.