Analyst Pessimistic About Completing DTV Transition Anytime Soon
October 12, 2004
A report, The Transition to Digital Television: FCC Mandates and Market Evolution, from Strategy Analytics said that while competition, falling prices and new regulations will spur millions of U.S. households to adopt HDTV over the next five years, the odds that the enough consumers will buy DTV sets to meet the government's goal of a full DTV transition within the next five years is highly unlikely.
"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," said James Pennune, Director of the Strategy Analytics Broadband Media and Communications Practice. "The next 12 months will be a critical period, 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."
This information is from the Strategy Analytics press release HDTV into 37 Million U.S. Homes By 2008, Full Digital Transition Will Require Further Regulation.