Audio Video News

July 2002 wasn't a great month for electronics retailers, but it sure was for some manufacturers who supply them.

On September 5, the Consumer Electronics Association (CEA) announced a whopping 81% rise in factory-to-dealer unit sales for digital television (DTV) products in July 2002, compared to the same period in 2001. The boost accounted for a 66% increase in dollar sales. The difference in the two percentages is attributed to declining prices for DTV products, which are becoming more accessible as the format grows in popularity. DTV products are defined by the CEA as "integrated sets and monitors displaying active vertical scanning lines of at least 480p and, in the case of integrated sets, receiving and decoding ATSC terrestrial digital transmissions."

In July 2002, 213,159 DTV products sold to dealers at an average price of $1,733 for a total of approximately $369.4 million. "The DTV transition, in terms of product sales, is progressing at an astounding pace," said CEA president and CEO Gary Shapiro. "Compared to the same period last year, we have sold nearly double the DTV products in 2002. With more than 400 products on the market, consumers are embracing marketplace choice and the phenomenal benefits of high definition television. Consumer electronics manufacturers hope to soon see that consumer enthusiasm extended to the digital cable industry as well."

Set-top converter boxes (STBs) are also selling well, although not as well as last year. For the first seven months of the year, 44,291 units went to dealers for a total of $20,152,689. The price of the average STBV was $455. During the same period last year, manufacturers sold 79,101 STB units.

Shapiro said the decline in demand for STBs was due to a wait-and-see attitude on the part of consumers. "What we see in the set-top box market is sustained sales evidence that Americans are waiting for more compelling high-definition content," he said. "Additionally, consumers want to view that content in the same manner in which they are accustomed to viewing analog programming. For the majority of American consumers, that means through cable. We urgently need digital cable and DTV equipment compatibility to see this transition skyrocket."

The CEA projects that 2.1 million DTV products—including integrated sets and displays—will be sold in 2002, 4 million in 2003, 5.4 million in 2004, 8 million in 2005 and 10.5 million in 2006.