[opendtv] PR: I want my DTV

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
  • Date: Wed, 30 Jun 2004 09:11:57 -0400

According to the following report, it is DVD, NOT=20
HDTV that is driving the adoption of new digital=20
television displays in most areas of the world...


I Want My DTV/ Global Digital Television Market=20
to Reach Sales of $70 Billion in 2008, IDC Says

June 30, 2004 12:00am
Source: Business Wire

  Business Wire: FRAMINGHAM, Mass.--(BUSINESS=20
WIRE)--June 29, 2004--The incredible popularity=20
of DVD players, coupled with the increasing=20
interest in "sexy" plasma and LCD displays, is=20
driving consumer adoption of digital televisions=20
around the world. Combine that with governments=20
pushing for change as they look to reap the=20
rewards of repurposing the analog spectrum and=20
you've got a market poised to reach sales of $70=20
billion in 2008.

  According to new research from IDC, the=20
evolutionary shift from analog to digital TV is=20
in full swing, but consumers' overall awareness=20
and understanding of DTV remains low.=20
High-definition television (HDTV) - a subset of=20
the overall DTV market - will eventually have a=20
dramatic impact on consumer education and=20
adoption of digital TV in certain parts of the=20
world. "For the most part, terms such as aspect=20
ratios and resolution do not resonate with the=20
average consumer," said Danielle Levitas,=20
director of consumer research at IDC. "As=20
consumers become exposed to the crisp, vivid=20
images and overall cinematic experience of HD,=20
they will begin to see a compelling reason to=20
replace their otherwise functioning analog=20
solutions. This move is well underway as the=20
selection of DTVs and HDTVs in retail continues=20
to swell."

  Although a global phenomenon, penetration of=20
DTVs into specific regions will vary greatly. In=20
the United States, cable providers have a=20
capacity advantage over satellite providers in=20
terms of carrying local HD channels. In Japan,=20
the mountainous topology has positioned satellite=20
as a critical driver for HD access. At this=20
point, HDTV content delivery, and therefore HD=20
set adoption, is essentially limited to=20
Australia, Canada, Japan, South Korea, and the=20
United States for the foreseeable future. Digital=20
TV in other parts of the world will continue to=20
be driven by advances in flat-panel displays and=20
the red-hot DVD market, which has seen global=20
shipments reach approximately 200 million since=20
being introduced in 1997, and is expected to grow=20
a third larger this year.

  Other highlights from IDC's research include the following:

  -- Global sales for all TVs will grow from 170=20
million in 2003 to 196 million in 2008, as=20
consumers begin to replace their analog sets.=20
This represents approximately $61 billion in=20
2003, growing to $86 billion in 2008.

  -- In 2003, 7.1% of global TV shipments were=20
digital; this year the percentage will climb to=20
more than 12%, and by 2008, 60% will be digital.

  -- Less than 20% of U.S. DTV households are watching HD content.

  -- Traditional electronics retailers are where=20
the majority of CE and DTV sales are made, but=20
new channels including club stores, online/direct=20
sellers, and discount retailers are playing an=20
increasing role, driving down average prices and=20
squeezing gross margins.

  -- The most common television screen size in=20
homes is 27 inches today; however, DTVs have a=20
larger average size because most sets sold to=20
date have been large-screen TVs. We expect the=20
average size of digital TVs to grow over the next=20
few years, then begin to decline as consumers buy=20
smaller screen DTVs to replace the analog TVs in=20
secondary locations.

  This study, Worldwide and U.S. Digital TV=20
2004-2008 Forecast: Its Time Has Come (IDC=20
#31263) forecasts unit and revenue sales of=20
digital televisions (DTVs) worldwide and in the=20
United States. The study forecasts the worldwide=20
and U.S. DTV market by display technology and=20
screen size. Also included are worldwide=20
forecasts of 4:3 versus 16:9 DTVs by display=20
technology and, for the U.S. market, a forecast=20
of DTVs that are DTV-ready versus integrated vs.=20
digital cable ready by screen size. Digital TV=20
set and HDTV reception penetration for the U.S.=20
and survey data is also included.

  To purchase this study, call IDC Sales at 508-988-7988 or email sales@idc.=

  About IDC

  IDC is the premier global market intelligence=20
and advisory firm in the information technology=20
and telecommunications industries. We analyze and=20
predict technology trends so that our clients can=20
make strategic, fact-based decisions on IT=20
purchases and business strategy. Over 700 IDC=20
analysts in 50 countries provide local expertise=20
and insights on technology markets. Business=20
executives and IT managers have relied for 40=20
years on our advice to make decisions that=20
contribute to the success of their organizations.

  IDC is a division of IDG, the world's leading=20
technology media, research, and events company.=20
Additional information can be found at=20

  All product and company names may be trademarks=20
or registered trademarks of their respective=20

CONTACT: IDC Danielle Levitas, 650-962-6487=20
dlevitas@xxxxxxx or Patrick Gorman, 508-935-4369=20
Customize your Business Wire news & multimedia to=20
match your needs. Get breaking news from=20
companies and organizations worldwide. Logon for=20
=46REE today at www.BusinessWire.com. .end=20
(paragraph)<<Business Wire -- 06/29/04>>

<< Copyright =A92004 Business Wire >>

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