Audio Video News

According to the latest estimates, released last week by the Consumer Electronics Association (CEA), unit sales to dealers (note: not sell-through to consumers) of digital television (DTV) displays and integrated sets achieved 625,000 in 2000, accounting for $1.4 billion in sales. The CEA projects that unit sales of DTV sets and displays will show 80% growth in 2001, reaching 1.125 million or $2.1 billion in sales. The trade group also forecasts unit sales of 2.1 million in 2002, 4 million in 2003, 5.4 million in 2004, 8 million in 2005, and 10.5 million in 2006.

The CEA's Todd Thibodeaux puts an optimistic spin on the numbers, stating that they "tell us that the consumer transition to DTV is going strong. Early unit sales growth of DTV is better than many of the industry's most successful products. And consumer dollar investment in DTV—nearly $5 billion by the end of 2001—is exceeding that of other blockbuster products." Thibodeaux adds that annual unit sales growth and dollar sales for DTV during its first four years on the market (1998-2001) are projected to "surpass those of computers, VCRs, CD players, and color TVs."

Overall, the CEA says that the video category grew by 15% in 2000 to a total of $19.2 billion in sales. That number is expected to increase by another six percent in 2001, with dollar projections topping $20.3 billion. Within the video category, the CEA predicts that DVD player growth will continue in 2001, projecting unit sales of 12.5 million, accounting for more than $2.4 billion.

More predictions: Personal video recorders, or PVRs, are "poised for tremendous gains" in 2001. CEA projects sales of 2.8 million units and $714 million for PVRs this year, up from 1.4 million units and $414 million in 2000. The CEA also says that home theater component sales will grow by 16% in 2001, to a total of $12.5 billion, as household penetration for complete home theater systems approaches 25%.