Television manufacturers will see a surge in cumulative HDTV sales over the next few years, boosting the overall market value to $65 billion by 2009, according to a new study from Parks Associates, a Dallas-based market research firm.
Consumers are growing less skeptical about HDTV, which is creating a gradual increase in demand for high-definition products and services, the study found. Nearly 47 percent of TV households in the U.S. plan to buy an HDTV in the next 12 months. This increase would boost HDTV sales by 30 percent and HD video services by 38 percent by the end of 2006.
Consumers who were once hesitant to spend huge dollars on an HDTV are now reconsidering this product category, according to Deepa Iyer, a research analyst at Parks Associates.
Service providers, content producers, television and chipset manufacturers, and other solution providers are all working to bring more high-definition products and services to the market, although Iyer warned that they need to ramp up their efforts.
The overall market penetration for high-definition televisions and services is very low. The current subscription rate for HD programming is barely 10 percent among all digital video subscribers, while only 35 percent of total HDTV households subscribe to HD video services.
Iyer said an increase in HDTV sales would fuel the demand for other services including high-definition VOD, local content, prime-time programming, and movies.
For more information on the study, visit www.parksassociates.com.