New Day Has Dawned For DTV Sets, Report Says

[Gregg Lengling]

In-Stat/MDR sees events in 2002 causing explosive growth by 2007

Edited by Charlie White
 
  SCOTTSDALE, Ariz., Mar. 10, 2003 -- In 2002, several factors gave new impetus to the digital TV (DTV) set market, according to In-Stat/MDR. The high-tech market research firm reports that with the FCC mandating that DTV tuners be integrated into all TV sets larger than 13-inches by mid 2007, in the U.S., the market will see explosive growth.

While the DTV set market in the U.S. has historically experienced triple digit growth, the market heretofore has been composed primarily of DTV monitors, which did not have integrated DTV tuners.

"Though digital TV sets began shipping in 1998 in the U.S., 2002 events will cause significant shifts in the future of the market," says Michelle Abraham, a Senior Analyst with In-Stat/MDR. "The FCC mandate in the U.S. will result in more shipments of DTV sets with integrated tuners and end the life of the DTV monitor category. In addition, the launch of Freeview in the UK (quintupling the number of terrestrial TV channels available free to air) breathes new life into DTT." Other European countries are expected to go live with digital terrestrial TV in 2003, joining the UK, Finland, Germany, Spain, and Sweden. Digital terrestrial broadcasting will begin in Japan by the end of 2003, joining the current digital broadcast satellite transmissions, encouraging more Japanese consumers to buy digital rather than analog sets. DTV sets have also proven to be a popular item in South Korea and are growing in China.

In-Stat/MDR has also found that:

The worldwide DTV set market in 2007 will reach 58 million units.

In the area of display technologies, the clean, thin-profile look of flat panel TVs is in demand from consumers who can afford it. New factories will be coming online in the next two years, which will increase the supply of Liquid Crystal Display (LCD) and plasma panels, thereby reducing their price.

Besides IEEE 1394 and DVI, DTV set manufacturers are adding 802.11b and Ethernet connections to DTV sets.