05.16.2003 12:00 PM
Yankee Group predicts nearly 40 Percent of U.S. homes will view HDTV programs in five years

Rapid deployment of HDTV by cable operators and growing availability of high definition programming will drive HDTV signals to 41.6 million homes (nearly 40 percent of the U.S. total) by year-end 2007, predicts research firm the Yankee Group.

In the report, “HDTV Finally Overcomes Industry Inertia, Set For Rapid Growth,” the researcher predicts:

  • HDTV’s 720p and 1080i formats will coexist for the foreseeable future

  • Despite the incremental cost, HD programming will continue to grow

  • HD can be a competitive differentiator, even for programming with limited visual appeal

  • Programmers without an HDTV product will lose out to competitors as high-value viewers shift to HD programming

  • DBS’ retail presence is a competitive advantage, making it available at the same point of purchase as HDTV monitors

  • Advertisers will need commercials in HD within two to three years

“Programmers, broadcasters, cable and DBS operators, and device manufacturers all must be HD-capable for the technology to succeed,” said Adi Kishore, Yankee Group Media & Entertainment Strategies analyst. “If any link in this chain does not support HD, the consumer will be unable to view HD-quality programming. Regulation that focuses on any one segment in this chain will be inadequate for driving the transition.”

For more information visit www.yankeegroup.com.

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