The Yankee Group recently released a study estimating that 59.3 million homes in the US will have HD televisions by the end of 2008. The group cited continued migration to HD content, better consumer education on the HD content that is available, advancements in digital-cable-ready televisions and improvements in digital interfaces as factors that will contribute to increase HDTV sales. The company acknowledged that growth for this technology has been slow for most of the first four years of its existence. However, it noted a huge surge in sales for 2003, the first major jump for HDTV products, which provided the momentum the technology needs to proliferate into American homes.
The report cited many positive developments already taking place that will sustain growth in the short term. First, a growing percentage of broadcast and cable content is now available in high definition, with particular emphasis on the most valuable types of programming genres. Almost all primetime content from the four major networks as well as high-viewership television events such as sports and concerts are now broadcast in HD. Second, consumer electronics (CE) manufacturers are satisfying requirements for integrating digital tuners in television sets in accordance with FCC code. Third, the average retail price of HDTVs is declining by 20 percent annually. As prices decline, the increased demand is driving wider product breadth and greater supplies. Finally, CE manufacturers and cable operators are increasingly entering into co-marketing agreements for packaging HDTVs and HD content to drive awareness and sales of the high-definition TV experience.
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