[opendtv] PR: For High-Definition Television, Supply Must Drive Demand, says ABI Research

For High-Definition Television, Supply Must Drive Demand, says ABI Research

August 24, 2005 12:00am
Source: Business Wire

OYSTER BAY, N.Y.--(BUSINESS WIRE)--Aug. 23, 2005--High-definition 
television has been available for some time now, but sales have not 
been growing at astronomical rates compared to other emerging digital 
technologies. Why haven't consumers jumped on the HDTV bandwagon with 
more enthusiasm?

According to a new study from ABI Research, the HDTV market is, and 
will remain for some time, an exercise in supply driving demand. "The 
Future of the High Definition Television Market" examines key 
drivers, enablers and hurdles for the future of the HDTV market, with 
a focus on consumer electronics vendors.

"Does an upgrade from standard television to HDTV provide the same 
kind of enhanced experience as going from black-and-white to color?" 
asks Vamsi Sistla, the company's director of residential 
entertainment technologies. "Or is it more like going from real-time 
viewing to the time-shifted experience of personal video recorders?"

The former, he points out, is a purely aesthetic experience, while 
the latter changes consumers' viewing habits. Upgrading to HDTV, 
Sistla believes, is like moving to color, but not even as dramatic. 
"Most consumers, having lived happily with standard TV, are not going 
to pay a hefty premium to move to HD today. Those who will upgrade 
for picture quality alone are a niche group, especially as long as 
the amount of available high definition programming remains small."

And why is there relatively little HD content? Because of the small 
audience base. This "catch-22" situation is well-understood, says 
Sistla, but the fact remains that "critical mass" for the HDTV market 
will only arrive when the equipment becomes sufficiently commoditized 
to drive prices down, and conventional TVs start to fade from the 
market. Only when consumers view conventional television as having 
reached its use-by date will large numbers of them be prepared to 
spend the premium for HDTV.

What does this mean for the markets? Vendors must simply persevere 
and produce as many sets as possible, waiting for the day when supply 
will truly drive demand.

Founded in 1990 and headquartered in New York, ABI Research maintains 
global operations supporting annual research programs, intelligence 
services and market reports in automotive, wireless, semiconductors, 
broadband, and energy. For information visit www.abiresearch.com, or 
call +1.516.624.2500.

CONTACT: ABI Research  Beth Schechner, +1-516-624-2542 
pr@xxxxxxxxxxxxxxx KEYWORD: NEW YORKINDUSTRY KEYWORD: 
COMPUTERS/ELECTRONICS TELEVISION/RADIO CABLESOURCE: ABI Research

<<Business Wire -- 08/24/05>>

<< Copyright ©2005 Business Wire >>
 
 
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