Connect with us

Hi, what are you looking for?

New Products

For High-Definition Television, Supply Must Drive Demand

OYSTER BAY, NY, Aug. 23, 2005 – High-definition television has been available for some time now, but sales have not been growing at astronomical rates compared to other emerging digital technologies. Why haven’t consumers jumped on the HDTV bandwagon with more enthusiasm?

According to a new study from ABI Research, the HDTV market is, and will remain for some time, an exercise in supply driving demand. “The Future of the High Definition Television Market” examines key drivers, enablers and hurdles for the future of the HDTV market, with a focus on consumer electronics vendors.

“Does an upgrade from standard television to HDTV provide the same kind of enhanced experience as going from black-and-white to color?” asks Vamsi Sistla, the company’s director of residential entertainment technologies. “Or is it more like going from real-time viewing to the time-shifted experience of personal video recorders?”

The former, he points out, is a purely aesthetic experience, while the latter changes consumers’ viewing habits. Upgrading to HDTV, Sistla believes, is like moving to color, but not even as dramatic. “Most consumers, having lived happily with standard TV, are not going to pay a hefty premium to move to HD today. Those who will upgrade for picture quality alone are a niche group, especially as long as the amount of available high definition programming remains small.”

And why is there relatively little HD content? Because of the small audience base. This “catch-22” situation is well-understood, says Sistla, but the fact remains that “critical mass” for the HDTV market will only arrive when the equipment becomes sufficiently commoditized to drive prices down, and conventional TVs start to fade from the market. Only when consumers view conventional television as having reached its use-by date will large numbers of them be prepared to spend the premium for HDTV.

What does this mean for the markets? Vendors must simply persevere and produce as many sets as possible, waiting for the day when supply will truly drive demand.

Founded in 1990 and headquartered in New York, ABI Research maintains global operations supporting annual research programs, intelligence services and market reports in automotive, wireless, semiconductors, broadband, and energy. For information visit http://www.abiresearch.com, or call +1.516.624.2500.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

Our Reviews

Digital Music Systems

The Wattson Audio Emerson Digital streamer is not inexpensive but it offers straight forward high-end digital playback that delivers sonically.

Over-Ear Headphones

Portable USB DACs are a new category that can take well regarded headphones from Meze Audio and Audeze to the next level when listening...

Integrated Amps & Stereo Receivers

Music listeners are living in the golden age of Hi-Fi. The $1,595 Rotel A14MKII Integrated Amplifier is proof positive of that reality.

Integrated Amps & Stereo Receivers

An amplifier that has flown under the radar for far too long. The Vincent SV-737 Integrated Amplifier is the real deal.

Reviews

$200 for a soundbar with Dolby Atmos? Does the Monoprice SB-300 Soundbar deliver the sonic goods or fall flat on its face?

Earbuds & In-Ear Headphones

$99 true wireless earbuds are worthy of consideration thanks to long battery life, app tuning and firmware upgradability.

You May Also Like

Advertisement

ecoustics is a hi-fi and music magazine offering product reviews, podcasts, news and advice for aspiring audiophiles, home theater enthusiasts and headphone hipsters. Read more

Copyright © 1999-2021 ecoustics | Disclaimer: We may earn a commission when you buy through links on our site.