Global Digital Television Market To Reach Sales Of $70 Billion In 2008

SPACEMART

boom times again

Framingham MA (SPX) Jun 30, 2004
The incredible popularity of DVD players, coupled with the increasing interest in "sexy" plasma and LCD displays, is driving consumer adoption of digital televisions around the world. Combine that with governments pushing for change as they look to reap the rewards of repurposing the analog spectrum and you've got a market poised to reach sales of $70 billion in 2008.

According to new research from IDC, the evolutionary shift from analog to digital TV is in full swing, but consumers' overall awareness and understanding of DTV remains low.

High-definition television (HDTV) - a subset of the overall DTV market - will eventually have a dramatic impact on consumer education and adoption of digital TV in certain parts of the world.

"For the most part, terms such as aspect ratios and resolution do not resonate with the average consumer," said Danielle Levitas, director of consumer research at IDC.

"As consumers become exposed to the crisp, vivid images and overall cinematic experience of HD, they will begin to see a compelling reason to replace their otherwise functioning analog solutions. This move is well underway as the selection of DTVs and HDTVs in retail continues to swell."

Although a global phenomenon, penetration of DTVs into specific regions will vary greatly. In the United States, cable providers have a capacity advantage over satellite providers in terms of carrying local HD channels.

In Japan, the mountainous topology has positioned satellite as a critical driver for HD access. At this point, HDTV content delivery, and therefore HD set adoption, is essentially limited to Australia, Canada, Japan, South Korea, and the United States for the foreseeable future.

Digital TV in other parts of the world will continue to be driven by advances in flat-panel displays and the red-hot DVD market, which has seen global shipments reach approximately 200 million since being introduced in 1997, and is expected to grow a third larger this year.

Other highlights from IDC's research include the following:

Global sales for all Tvs will grow from 170 million in 2003 to 196 million in 2008, as consumers begin to replace their analog sets. This represents approximately $61 billion in 2003, growing to $86 billion in 2008.

In 2003, 7.1% of global TV shipments were digital; this year the percentage will climb to more than 12%, and by 2008, 60% will be digital.

Less than 20% of U.S. DTV households are watching HD content.

Traditional electronics retailers are where the majority of CE and DTV sales are made, but new channels including club stores, online/direct sellers, and discount retailers are playing an increasing role, driving down average prices and squeezing gross margins.

The most common television screen size in homes is 27 inches today; however, DTVs have a larger average size because most sets sold to date have been large-screen Tvs.

We expect the average size of digital Tvs to grow over the next few years, then begin to decline as consumers buy smaller screen DTVs to replace the analog Tvs in secondary locations.

This study, Worldwide and U.S. Digital TV 2004-2008 Forecast: Its Time Has Come (IDC #31263) forecasts unit and revenue sales of digital televisions (DTVs) worldwide and in the United States.

The study forecasts the worldwide and U.S. DTV market by display technology and screen size. Also included are worldwide forecasts of 4:3 versus 16:9 DTVs by display technology and, for the U.S. market, a forecast of DTVs that are DTV-ready versus integrated vs. digital cable ready by screen size.

Digital TV set and HDTV reception penetration for the U.S. and survey data is also included.

SPACEMART

SES Astra Acquires 75.2% Stake In DPC

Munich (SPX) Jun 29, 2004
SES Astra, an SES Global company has entered into a binding agreement to acquire a 75.2% stake in DPC (Digital Playout Center) from German Pay-TV operator Premiere. The transaction, for a consideration of EUR 41.2 million, is subject to approval by competition authorities.

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