DTV Shipments to Quadruple by 2008 December 6, 2004 12:00am Source: Reed Business Information. All Rights Reserved. Electronic News: Looming government deadlines and=20 the rise of new display technologies are driving=20 the market for digital television (DTV) sets into=20 high gear, to be evidenced by a period of rapid=20 growth when shipments are expected to grow by=20 more than fourfold from 2004 to 2008, according=20 to iSuppli Corp. DTV shipments are predicted to rise at a CAGR of=20 44.5 percent to 86.6 million units in 2008 from=20 19.9 million units in 2004, the El Segundo,=20 Calif.-based market research firm said. This year=20 is expected to be particularly good for DTV, with=20 unit shipments growing by 114 percent from 9.3=20 million units in 2003. Worldwide DTV shipment revenue will double by=20 2008, to $62.8 billion in 2008, up from $31.4=20 billion this year, the firm said. Integrated vs. Digital-Ready Included in the DTV category are integrated DTV=20 sets and digital-ready TV sets. Integrated DTV=20 sets have digital set-top box functionality with=20 decoding built into the TV set; they may or may=20 not have high-definition functionality; and they=20 do have the capability to receive direct input=20 from cable and terrestrial broadcasts. Digital-ready TV sets cannot accept direct=20 signals from satellite, cable or terrestrial; may=20 contain a tuner for receiving analog broadcasts;=20 contain ICs to up-convert to progressive scan or=20 digital resolution of at least 480 progressive=20 and may be capable of up-converting to full=20 high-definition resolution of 720 progressive or=20 1080 interlaced. DTV-ready sets currently comprise the majority of=20 shipments, with 60 percent of DTV sets made this=20 year to be of this type. With integrated sets gaining momentum and=20 shipments rising at a CAGR 66 percent from 2004=20 and 2008, compared to 15 percent for the=20 DTV-ready products, iSuppli predicts that by 2008=20 integrated sets will account for 75 percent of=20 all DTV shipments. Deadlines Approaching, Global Acceptance Coming After many years of slow growth due to the set=20 makers and broadcasters unwillingness to take the=20 first steps, with government mandates and rulings=20 in place, all parties are making moves toward=20 meeting the deadlines to make the DTV market a=20 reality. In the U.S., for instance, all TV stations must=20 transmit digitally by 2007, according to the=20 government mandate with worldwide deadlines for=20 the commencement of DTV transmission falling=20 between 2007 and 2015. DTV transition also is being fueled by acceptance=20 and availability of newer television display=20 technologies like LCD, plasma, liquid crystal on=20 silicon (LCOS) and Texas Instruments' digital=20 light processing (DLP). With intrinsic support=20 for display of resolutions of 480p and higher,=20 these display technologies are inherently suited=20 for DTV applications. LCDs are expected to account for 43 percent of=20 all DTV-set shipments this year, to hold steady=20 over the next four years. CRT (cathode ray tube)=20 TV-display and plasma DTV sets will gain share=20 between 2004 and 2008, while rear-projection=20 televisions will see their portion of the market=20 decline, iSuppli believes. CRT DTVs are expected to gain acceptance in most=20 parts of the world, especially North America and=20 China, where consumers are extremely price=20 conscious and because CRT TVs allow consumers to=20 obtain DTVs at affordable prices, as the ASPs of=20 similar-sized CRT and LCD TVs still are higher by=20 a factor of two, iSuppli noted. CRT TVs are seen as the emerging dominant=20 technology in China in 2008. In Europe and Japan,=20 where consumers are more concerned about=20 aesthetics and room size than they are about=20 price, CRT TVs will account for a much smaller=20 portion of the DTV market. On a regional basis, North America is to lead the=20 worldwide adoption of DTVs, followed by Europe=20 and Japan, the firm reported. The rest of the=20 world will experience the slowest growth because=20 most of its countries have few regulations in=20 place and most of those countries are in the=20 emerging or third-world market category, where=20 consumers lack sufficient disposable income to=20 purchase a high-priced consumer item, the firm=20 added. Regional differences in adoption of DTV also are=20 due to variances in government mandates for=20 conversion from analog broadcast to digital=20 broadcasting. North America will account for an=20 estimated 43 percent of all DTV shipments this=20 year. As the market grows and other regions adopt=20 DTVs, the shares will start to stabilize, with=20 North America leading the market, followed by=20 Europe, Japan and China. =46inally, the market for DTV semiconductors will=20 reach $1.3 billion this year, growing nearly=20 fourfold to $4.9 billion by 2008, with the=20 largest DTV chip segment being decoders and=20 demodulators for the front-end, followed by video=20 system ICs such as image processors, controllers=20 and SOCs. <<Electronic News -- 11/22/04>> << Copyright =A92004 Reed Business Information. All Rights Reserved. >> ---------------------------------------------------------------------- You can UNSUBSCRIBE from the OpenDTV list in two ways: - Using the UNSUBSCRIBE command in your user configuration settings at FreeLists.org - By sending a message to: opendtv-request@xxxxxxxxxxxxx with the word unsubscribe in the subject line.