Demand for set top boxes for Freeview is showing signs of levelling off, according to new figures.

The new boxes were hailed as the 'must-have Christmas present', and some 40,000 boxes were sold in the two week festive period.

The estimates, from TV company Flextech, are short of the 65,000 that were sold in Freeview's first two weeks on air, suggesting a slowdown.

An average of 32,750 were sold in November, compared to 40,000 in December, showing an almost 25 per cent rise.

It is reported that up to 250,000 of the new digital terrestrial receivers were sold between launch in October and the end of the year, yet it is difficult to determine the actual number of people who can receive the service. It is not known how many ex-ITV Digital customers are continuing to use their equipment to receive the 30 free channels. Flextech report the number may be as high as 1.5m, yet BARB suggest it may be much lower at just 900,000.

Retailers reported a difficulty in maintaining stocks of the new boxes over Christmas, wity many outlets selling out of the boxes, which cost between £99 and £150.