Digital TV market to reach sales of US $70b in 2008

The increased interest in plasma and LCD displays and the popularity of DVD players combined with government attempts to migrate to digital solutions is driving consumer adoption of digital televisions around the world.

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By  Vijaya Cherian Published  June 29, 2004

The popularity of DVD players combined with the increasing interest in plasma and LCD displays and government attempts to migrate to digital solutions is driving consumer adoption of digital televisions around the world. According to an IDC report, the digital television market is poised to reach sales of US $70 billion in 2008. The IDC reports adds that although the evolutionary shift from analogue to digital TV is in full swing, consumer awareness and understanding of DTV is very low. High-definition television (HDTV) — a subset of the overall DTV market — will eventually have a dramatic impact on consumer education and adoption of digital TV in certain parts of the world. "For the most part, terms such as aspect ratios and resolution do not resonate with the average consumer," said Danielle Levitas, director of consumer research at IDC. "As consumers become exposed to the crisp, vivid images and overall cinematic experience of HD, they will begin to see a compelling reason to replace their otherwise functioning analogue solutions. This move is well underway as the selection of DTVs and HDTVs in retail continues to swell." Although a global phenomenon, penetration of DTVs into specific regions will vary greatly. In the United States, cable providers have a capacity advantage over satellite providers in terms of carrying local HD channels. In Japan, the mountainous topology has positioned satellite as a critical driver for HD access. At this point, HDTV content delivery, and therefore HD set adoption, is essentially limited to Australia, Canada, Japan, South Korea, and the United States for the foreseeable future. Digital TV in other parts of the world will continue to be driven by advances in flat-panel displays and the red-hot DVD market, which has seen global shipments reach approximately 200 million since being introduced in 1997, and is expected to grow a third larger this year. The report also adds that global sales for all TVs will grow from 170 million in 2003 to 196 million in 2008, as consumers begin to replace their analogue sets. This represents approximately US $61 billion in 2003, growing to $86 billion in 2008. Also, in 2003, only 7.1% of global TV shipments were digital, while this year, the percentage will climb to more than 12%, and by 2008, it is predicted to soar to 60%.

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