Vision - November/December 2008 - (Page 33)

By Dave Arland W hen the first high-definition television (HDTV) products were sold to consumers ten years ago, high-def broadcasts of the Super Bowl and NCAA Final Four were still two years away. There wasn’t much to watch in HD. But since then, the transition to all-digital TV broadcasting and the related move to high-def production have spurred sales of millions of HDTV sets, recording and playback gear, audio systems and pay-TV subscriptions. HDTV continues to pay dividends for CE companies, broadcasters and network operators, some of whom initially were reluctant to embrace an HD future. ESPN became an “early adopter” for the content side. 2009 will mark the sixth anniversary of the launch of ESPN-HD, which includes coverage from the summer and winter XGames. “When we launched ESPN-HD in March of 2003, we couldn’t even record HD in our Connecticut facilities. Now, five years later, we’re launching three HD networks in one year—including ESPN HD Australia, which is produced in Connecticut and sent 24 hours a day by undersea fiber to Sydney,” says ESPN Vice President Bryan Burns. “Simply put, sports fans gravitate to programs in high-definition and watch HD programs longer. Nielsen now tells us that ESPN rates about 50 percent higher in HD homes than in non-HD homes, and that more than 28 percent of ESPN’s total day household audience comes from homes with HD service. We now know that the growth of originally produced HD programming can inﬂuence viewing positively. The subsequent lift in carriage and ratings therefore has made the investment and the effort very worthwhile,” says Burns. With HD content booming and wholesale set prices dropping 11 percent, CEA expects overall digital TV shipments to climb nearly 25 percent this year. Both LCD and plasma technologies continue to climb in popularity, with LCD representing 73 percent of total digital TV sales. Digital TV remains the primary revenue driver for the CE industry, with dollar shipments representing almost 19 percent of total industry sales. The number one consumer reason for purchasing an HDTV set remains picture quality—the most obvious feature that has stopped millions of shoppers in their tracks as they peruse the ﬂat screens in stores. “I think televisions in particular have dem- onstrated an ability to buck any economic headwinds. TVs tend to do a good job in retaining relevance in a consumer’s purchase decisions—when they decide what to invest in. They’re buying a ﬂat-panel and buying as big as they can,” says Paul Gagnon, director of North America TV Market Research for DisplaySearch. Coming: 3D Now that consumers have lapped up the beauty of HDTV, what’s next for the technology? Japanese public broadcaster NHK has demonstrated ultra high-definition video with a resolution of 7,680 x 4,320 pixels— four times as wide and four times as high as existing HDTV. But Gagnon says large scale roll-outs of new “higher-definition” technologies are unlikely in the near future. “The idea behind anything that takes current viewing up another layer is going to require content, systems to distribute that content and everything to support it. I don’t see that changing for some time. 3D probably has a better chance of making it into mainstream TV products, even quicker than higher resolution displays.” With retailers in key markets showing consumers one of the future capabilities Super Bowl and NCAA Final Four programs are broadcast in HDTV for the ﬁrst time. The ﬁrst HDTV VCR is announced. The ﬁrst HDTV direct broadcast satellite receivers become available. FCC imposes HDTV labeling standards. 2000 2002 High-deﬁnition multimedia interface (HDMI) digital video connector format is announced. FCC requires mandatory inclusion of ATSC HDTV tuner in 36-inch and larger HDTVs. The ﬁrst HDTV with built-in HD-DVR goes on sale. The ﬁrst HDTV camcorders enter the marketplace. FCC requires mandatory inclusion of ATSC HDTV tuner in 50 percent of all 24-inch to 35-inch HDTVs by July 1. 2004 2005 2006 Sales of digital TVs surpass sales of analog TVs for the ﬁrst time. President Bush signs legislation to end analog television broadcasting on February 17, 2009. Digital TV converter coupon program begins and converter boxes go on sale. 2008 2009 Analog TV broadcasting will end. Mobile DTV standard will be established, and the ﬁrst products will go on sale. Source: CEA’s Digital America 2008 November/December 2008 2003 Combination cable HDTV set-top boxes, HDTV, DVRs and CableCARD-equipped digital TVs go on sale. 33

Table of Contents Feed for the Digital Edition of Vision - November/December 2008

Vision - November/December 2008 Contents Shapiro's Spectrum In this Issue The Economist C4 Trends Going Global Visionary CES Unveiled Eco-Intelligence Is Vital in a Sustainable Global Market XGP— A Game Changer Enhancing the Tech Experience High-Definition Decade Public-Private Partnerships CEA Newsline Tech Speak Tech Policy Eye on Business Market Insider Just the Stats

Vision - November/December 2008

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