When it comes to HDTVs, it appears the recession is not dampening the publicâ€™s interest in owning a high-def set, but it is impacting how much gets spent, according to a new forecast from SNL Kagan.
Renewed consumer spending on HDTVs should push the percentage of HD households to 71 percent this year, or about 82.3 million U.S. homes, according to the companyâ€™s analysis. By way of comparison, just 16 percent of U.S. homes owned HDTVs in 2005.
The latest SNL Kagan projection forecasts the HDTV set market will pick up in the second half of the year and continue advancing into 2010 with total sales this year reaching 29 million units, up 2.8 million from the last yearâ€™s level. SNL Kagan attributes the increase to pent-up consumer demand and reaction to lower average retail prices for HDTVs.
The upward trend is not entirely good news for makers and retailers of HDTVs, however. The researcher forecasts consumers generally will favor budget, midsize displays, which will reduce profit margins for sellers and manufacturers of HDTVs. According to SNL Kagan, HDTV retail revenues will reach $25.5 billion, down from the 2008 total of $28.4 billion.
By 2010-2011, mass adoption will take hold and 80 percent to 90 percent of U.S. homes will have HDTVs, said SNL Kagan analyst Justin Nielson. Beyond 2012 nearly every household in the United States will have at least one HDTV, he added.