Audio Video News

Public acceptance of high definition television is growing, but not at the rate hoped for by manufacturers, cable providers, and broadcasters, according to a recently released study by Strategy Analytics.

The Boston-based research and consulting firm predicts that 29 million US homes will have HD-capable televisions and monitors by 2008, with an estimated half of those displays connected to an HDTV service, either cable or satellite. A market penetration of almost one in three isn't bad–there are approximately 98 million TV-equipped homes in the US, according to the Consumer Electronics Association (CEA), but broadcasters and cable providers are apt to be dismayed by an HD subscription level of less than 15% of the total television viewership.

The rollout for HDTV has taken far longer than anyone imagined when it was proposed a decade ago. The format will continue to grow slowly but steadily, according to David Mercer, vice president of broadband practice, at Strategy Analytics. "Sufficient momentum is now building at both content and operator levels to ensure a successful niche market in the longer term."

The HDTV study suggests that by 2008, the number of HD-capable displays in US homes could reach as high as 33.4 million units (with multiple HDTVs in some homes) with 27% of those viewers getting HD signals from cable, 14% from satellite services, and 8% from terrestrial broadcasters.

Strategy Analytics estimates that by the end of 2002, 4.8 million US homes will own an HD-capable display, with approximately one million of them equipped with HDTV tuners for either cable, satellite, or terrestrial platforms. Most TVs selling for more than $1500 are already HD-compatible, analysts noted.