Rapid US Growth Forecast for HDTV

More than 14 million US households will be able to receive HDTV via some kind of compatible hardware by the end of 2004, according to new research from Strategy Analytics. Competition, falling prices and new regulations will drive mass adoption over the next five years.

'The Transition to Digital Television: FCC Mandates and Market Evolution' predicts that the number of US households owning some type of HD-capable hardware will rise from 8.7 million in 2003 to some 37 million households by 2008.

Roughly half the 14 million connected by the end of this year will also receive HD programming from cable, satellite or terrestrial sources.

Depite this rapid growth, the report says that it remains highly unlikely that the government will meet its goal of a full transition to digital broadcasting within the next five years. As a result, legislators and the FCC must seriously consider further regulatory measures, such as the down-conversion of digital signals or the subsidy of adaptors for millions of existing TVs.

The next 12 months will be a critical period, according to James Penhune, Director of the company's Broadband Media and Communications practice, as 'consumer electronics vendors launch a new generation of digital receivers incorporating government-mandated features such as ATSC tuners and CableCARD slots. At the same time, market factors are combining to promote demand for digital TV. These include a growing base of households with HD-capable displays and the increasing importance of HD programming services to cable and satellite operators competing for high-value subscribers'.

The report also evaluates the impact of recent mandates imposed on TV makers, broadcasters and cable operators over the last two years.

Strategy Analytics has its worldwide headquarters in Newton, MA, USA and principal offices in England, France and Germany. Its main focuses are Automotive Electronics, Broadband, Telematics, Wireless Strategies and Enabling Technologies, and its web site is at www.strategyanalytics.com

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

• Strategy Analytics
• All news