Posted by Rich on 12/28/57 11:30

HDTV sales in the U.S. to grow 71 percent by 2009

Television manufacturers will see a surge in cumulative HDTV sales
over the next few years, which will boost the overall market value to
$65 billion by 2009, according to "Adoption of High-Definition TVs and
Services," a new study from Parks Associates.

The report, which includes data from Parks Associates' "Mobile
Entertainment Platforms & Services" study, finds consumers are growing
less skeptical about HDTV, which is creating a gradual increase in
demand for high-definition products and services. Nearly 47% of TV
households in the U.S. plan to buy an HDTV in the next twelve months.
This increase would boost HDTV sales by 30% and HD video services by
38% by the end of 2006.

"Consumers are beginning to see the true benefits of HDTV," said Deepa
Iyer, a research analyst at Parks Associates. "Consumers who were once
hesitant to spend huge dollars on an HDTV are now reconsidering this
product category."

As a result, service providers, including broadcasters, cable, and DBS
operators, are beginning to feel a push to expand their HD video
services in order to attract more HD subscribers. Service providers,
content producers, television and chipset manufacturers, and other
solution providers are all working to bring more high-definition
products and services to market, although Iyer warns that they need to
ramp up their efforts. The overall market penetration for
high-definition televisions and services is very low. The current
subscription rate for HD programming is barely 10% among all digital
video subscribers, while only 35% of total HDTV households subscribe
to HD video services.

"It is a chain reaction," Iyer said. "An increase in HDTV sales will
fuel the demand for other services including high-definition VOD,
local content, primetime programming, and movies. However, this
industry lacks a sense of urgency in its efforts to bring compelling
HD services to consumers. It has to recognize that HDTV will become
ubiquitous only if all collateral forces within come together to
embrace the change."

Parks Associates will further examine the issue of meaningful content
delivery at the upcoming executive conference "Fall Focus: Making
Media Meaningful," hosted November 9-11, 2005, at the Fairmont San
Jose. With sessions such as "Enhancing the Television Experience via
Interactivity" and "The "Eyes" Have It: Video Content on Consumers'
Terms," this event will feature analysis and discussion on the
expanding paradigm for video services.

"Adoption of High-Definition TVs and Services" provides an analysis of
the enablers, inhibitors, and opportunities for high-definition TVs
and services in the U.S. It provides insight into service providers'
strategies and consumer behavior patterns for next-generation services
and applications.

Source: Parks Associates




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