Manufacturers will have to install features currently only available as paid-for add-ons in top-of-the-range HDTV models if sales growth is to be sustained.
That is the conclusion of a report by research firm DisplaySearch which suggests that sales of HDTVs will peak in the next two or three years.
It goes on to say that sales will then fall unless manufacturers can add compelling features that consumers are willing to pay for.
Calvin Hsieh, the director of research at DisplaySearch, said internet connectivity, full 1080p resolution, PVR capabilities and upgraded HDMI port specifications need to become standard fare by next year.
“Our research shows that the growth of the market will peak between 2009 and 2011,” he said.
“Thereafter, growth will be limited without the development of new, enhanced features for TVs.”
Less than half the digital TVs sold in Asia, Latin America and the Middle East with screen sizes larger than 40 inches have 1080p resolution – Japan has the highest penetration, at 90 per cent.
Mr Hsieh said that while internet access is beginning to show up in sets from Panasonic, Sharp, and Sony, among others, once network connections are integrated right into a chip instead of requiring an ungainly add-on box, more applications will emerge that take advantage of the connectivity.
Tag: hdtv
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HDTV sets will need new features for sales to continue improving
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Number of LCD TVs being returned rises as viewers demand better quality for HDTV
The refund rate on LCD TVs has increased to 25-30 per cent in North America despite a drop in prices by branded TV retailers.
Many vendors reduced prices for 32-inch and 40-inch LCD TVs in May in an attempt to boost sales.
However, the move has led to a rise in the number of products being returned as viewer expectations about the quality of high-definition images rises.
The introduction of HD TV broadcasts in North America has made it much easier to compare the resolution of LCD TVs, according to a report in DigiTimes.
It quotes industry sources who attribute the high refund rate for LCD to consumer dissatisfaction with low-priced products that did not meet their original expectations in terms of picture quality. -
Savor the carnival atmosphere of Cirque Du Sole as Blu-ray brings the excitement of the big top into your living room
Sony Pictures has announced it is bringing one of the world famous Cirque Du Soleil’s performances to Blu-ray later this year.
“Cirque Du Soleil: Corteo”, by the celebrated troupe that has thrilled audiences on five continents, is due to be released on September 2nd.
Sony said disk would capture all the magic of the performance in stunning high definition. No specs or special features have been announced at this time.
The move is the latest digital venture by the circus, which has been seen by close to 80 million spectators in over 200 cities.
Last month, the award winning Cirque announced it was extending its reach through mobile in partnership with YuuZoo, the fast growing new global mobile content, media and advertising company.
Cirque du Soleil fans around the world are able to download show video excerpts, graphics and wallpapers directly onto their mobile devices through a new service offered through YuuZoo.
Ron Creevey, president of YuuZoo, said the link-up was intended to expand beyond traditional mobile offerings by providing our customers with a broad selection of popular, unique subjects.
“That’s one reason we’re very proud to be associated with such an innovative, creative world brand as Cirque du Soleil,” he said. -
Free high definition content is the future as viewers grow accustomed to the new "normal" television
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The head of the UK’s Freesat digital service believes viewers will begin to resent paying for HDTV as increasing numbers regard it as the new “standard”.
Emma Scott, managing director of Freesat, which launched in May, said there were already over 10m HD ready TV sets in UK homes.
But at the time of Freesat’s launch only around 5 per cent of those HD ready homes were actually watching television programmes in high definition – and by subscription.
Addressing the Broadcast Digital Channels Conference 2008 earlier this month, she said consumers and retailers wanted HD content– but it was the broadcasters that had taken a while to catch up.
“Free HD is a long term opportunity for broadcasters and for Freesat,” she said. “HD is not a gimmick, it’s a new standard for television and one which every broadcaster I’ve met would love to deliver its content in.
“I do not believe that HD will remain a long term income driver for pay platform operators – consumers will resent paying for something they see as the ‘new normal’ television if it isn’t premium sport and movies, which they already ‘expect’ to pay for.”
Freesat offers subscription-free high definition channels and services once viewers have made a one-off payment for equipment.
It expects to have up to 200 channels by the end of this year, including two high definition services – BBC HD and ITV HD – both available for free.
Scott said that only with the launch of Freesat, a joint venture between the BBC and ITV, was HDTV really free for anyone who wanted it.
She pointed to the rise in popularity of HD in the US, saying that the 35 per cent of homes now watching in HD were increasingly loyal to the networks they watched – and sought out HD programming, even if they wouldn’t normally watch the genre.
“And with 1m Sony Playstation3s and an increasing number of Blu-ray players sold – both of which allow you to watch HD content via an HD ready TV – there are an increasing number of homes who will never want to switch back to just normal, ‘standard’ definition content.”
Citing other popular examples where consumers get free access to products and services – such as Gmail, YouTube and Skype – she said Freesat hoped to be as successful in broadcasting.
“So, in a world where there is widespread availability of digital technology, consumers increasingly expect their media for free,” she said.
“But just being free isn’t enough for Freesat. Freesat will be the best of free, and is only going to get bigger and better.” -
DirectTV says high definition content is helping attract new subscribers
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The US’s leading provider of HDTV has credited its 95 channels of HD content as one of the main reason for increasing subscribers even as the economy falters.
Paul Guyardo, DirecTV’s chief marketing officer, said the company had not been greatly affected by the US economic slowdown.
DirecTV added 275,000 subscribers in the first quarter, compared to just 35,000 for rival Dish Network.
He attributed the satcaster’s market-leading HD offering as a major factor in the increase.
“I don’t want to say that we are recession-proof, but I will say that we have not been dramatically affected by the recession,” Guyardo told Advertising Age.
“Right now is a time when people don’t necessarily have those discretionary dollars to go out to entertainment outside of the house.
“And so now more than ever, they’re turning to their television as a source of entertainment. And at the end of the day, DirecTV is an exceptional value.”
Guyardo said that DirecTV launched an aggressive marketing campaign last year to promote its expanded HD lineup, at a time when many consumers were starting to tighten their belts.
The satcaster expanded its high-def channel total from nine to more than 70 last Autumn.
“All of our awareness studies would suggest that people clearly do understand that DirecTV is the undisputed leader in HD,” he said.
Despite adding only a small number of new high-def channels this year DirecTV is currently the leading US provider of high definition TV programming.
With a new satellite due to come on-stream, it is unlikely to lose the top spot in the near future and is expected to expand its current offering of 96 national HD channels.
Dish Network lies in second place, with approximately 80 channels, while the cable operators Comcast, Cablevision and Time Warner offer 40-60 high-def channels in some markets.
In other markets, this figure drops to less than 30 HD channels.
Verizon currently has fewer than 40 HD channels but says it will up this to150 by the end of 2008.
AT&T’s U-Verse TV service also offers around 40 HD channels and hasn’t announced any expansion plans.
Guyardo said that DirecTV was well positioned to attract future HD subscribers.
“People are still investing a ton of money in big, flat-screen TVs – HDTVs,” he said.
“The growth has definitely levelled off, but the growth is still there. And I think they want a quality picture on their 50-inch Plasma.” -
No mention of Olympic factor as US market for flat-panel HDTVs remains strong despite economic down-turn
Sales of LCD and plasma TVs showed a 53 per cent year-on-year increase in the US for the first quarter of 2008, with more than 7.5 million units sold.
This represents a 7 per cent increase over industry projections for the period.
While analysts in Japan have attributed a 35 per cent increase in flat-panel TV sales during the first half of June to the upcoming Beijing Olympics, industry executives in the US are being more cagey.
But what those attending the DisplaySearch TV Supply Chain Conference in San Diego did agree on was that despite the state of the US economy, the North America TV market remains robust – so far.
Paul Gagnon director of North American TV research at DisplaySearch, said the data also highlighted consumer preference for smaller LCD and plasma TVs.
“Smaller TV sizes are doing better than larger sizes, while the larger sizes seem to be under pressure from weakened consumer spending,” he said.
“For example, global shipments of 32” TVs exceeded our forecasts by 10 per cent, while all screen size categories above 40” fell short of expectations by 3 per cent or more.”
The summer holiday season is expected to present a major challenge for US retailers if the present economic trend continues, according to a majority of conference attendees.
That could translate into better deals for consumers, and those deals could remain even if the economy recovers over the next few years because panel manufacturers are adding more TV assembly lines. -
Shift towards wireless HDTV expected to be gradual as technology evolves
The race to perfect a wireless HDTV system is being contested by three competing technologies, each one with particular advantages without offering the complete package.
But within three years one will have emerged as the dominant system, according to a study by ABI Research.
This is expected to take global installations from an estimated 100,000 this year to the milestone one million by 2012.
Steve Wilson, principal analyst on the report “Wireless Video Cable Replacement Market and Technologies”, said the wireless HDTV market was still in its “incubation” stage.
He said a “battle of technologies” was being fought by the three contending systems, loosely characterised as 5 GHz, 60 GHz, and ultra wideband (UWB).
“5 GHz technology is better understood and more proven but achieving the required data rates requires new approaches and more complex solutions,” he said.
“UWB technology has bandwidth advantages at in-room distances but drops rapidly at greater ranges.
“60 GHz allows high data rates, but so far only one company is even close to a viable solution.”
Among the advantages of wireless HDTV are simplification of installation and the flexibility it offers in positioning TVs.
There are both commercial applications – digital signage, for example – and domestic applications such as wall-mounting a flat-screen HDTV.
“The initial sweet spot in the market is where wired installation would be difficult or complicated,” said Wilson.
He said small numbers of 5 GHz and UWB devices are currently shipping, while demo products of 60 GHz systems are expected early next year.
“Over the next two to three years, we’re going to see one or two of these wireless HDTV approaches emerge as the primary ones,” he added.
All the wireless HDTV silicon vendors are venture-backed startups and most established wireless vendors are waiting to see how the market evolves.
Product manufacturers are moving forward with different strategies.
Some, like Westinghouse and Belkin, are initially targeting commercial and custom installers where there is clear value-add.
In contrast, some TV manufacturers such as Sharp and Hitachi are targeting buyers of their latest technology, offering design-oriented, elegant products that come with a wireless connectivity option. -
Study says 2008 will be the year of HDTV in Asia
Seventy-five per cent of pay TV operators in Asia have, or expect to have, HDTV programming by the end of 2008.
But the lack of substantial HDTV content – both local and international – is seen as being the most important roadblock for developing the HDTV sector in the region.
These are among of the findings of a survey carried out for MEASAT Satellite Systems by Euroconsult into the development of high definition television in the Asia-Pacific region.
The study, which was conducted during May, polled the rationale, benefits, challenges and expectations of HDTV amongst the regions’ leading pay TV
operators.
A total of 25 operators in 15 markets, collectively serving more than 24 million subscribers, were interviewed.
It showed operators as generally bullish on the outlook for HDTV, with a majority expecting it to increase ARPU or profits on its own.
HDTV, which most saw as “here to stay” and destined to become a “must have” offering, had been identified as a key strategic priority for their business.
The study indicated that the rollout of HDTV is being spearheaded by newer pay TV platforms looking to differentiate their offerings from existing platforms.
More established platforms were taking a slower approach to implementing HDTV.
Interviews conducted suggested that HDTV was seen as not particularly easy or difficult to introduce.
The lack of substantial HDTV content – both local and international – was viewed consistently as the most important roadblock for developing the HDTV sector in the region.
Paul Brown-Kenyon, chief operating officer of MEASAT, said the results of the study were very interesting.
“The insights will help us determine how best we can support our customers and partners in the development of this important segment,” he said
Pacome Revillon, managing director of Euroconsult, said the study provided clear evidence of faster development of HD offerings in Asia than previously expected.
“Opportunity for growth and increasing competitive pressure are the primary factors driving pay-TV broadcasters to develop an HD offer,” he said. -
HDTV poses challenge to crowds at live sports events as fans opt for armchairs
It used to be that fighting your way through crowds to get a close-up of sporting stars such as Tiger Woods and Rafael Nadal was infinitely better than sitting at home watching the TV coverage.
But as growing numbers of sports fans upgrade to HDTVs it would appear that the lure of live events could be diminishing.
In the US, a top football club is experiencing what is likely to be a growing trend: a fall in season tickets sales as supporters decide they get a better view staying at home and watching games on their HDTVs.
Steve LaCroix, the Minnesota Vikings’ vice president of sales and marketing, said that HDTV is making his job more difficult.
The Vikings recently announced that its 2008 season ticket base would be 55,000, down 6,000 from just a few years ago.
“(But) I don’t think the renewal percentage is a factor of a fan-base erosion or anything,” he said.
“It’s just a matter of the challenge of the Metrodome and people leaving their high definition televisions at home to come sit in the Metrodome in some of the upper sections.”
The Vikings, whose regular season games are broadcast by Fox, can usually be seen each week in HD.
The Vikings’ experience is likely to become an increasingly common one – especially as ticket prices rise and networks and regional sports channels expand their HD lineups. -
Deal signed with Intelsat to provide HD transmissions from Beijing Olympic Games
The European Broadcasting Union (EBU) has signed a multi transponder deal with Intelsat Ltd for the video carriage of the 2008 Beijing Olympic Games to Europe.
C-/Ku-band cross-strap capacity on the Intelsat 706 satellite, located at 50.2 degrees East, will be used to distribute the all high definition event to EBU members.
Intelsat is the only global satellite operator to have provided coverage of every Olympic Games since 1968.
The EBU, of which a large proportion of the major European broadcasters are members, provides a full range of network services, including but not limited to HD transmissions to broadband video carriage.
Stefan Kurten, director of the Eurovision Operations Department, said: “By using Intelsat to deliver the Summer Games, we are confident that our members will benefit from the reliable service Intelsat offers when it comes to large scale events.”