Second Annual CEA Study Highlights High-Def Sports As Key Driver To HDTV Sales

January 16, 2007

Sports fans are driving the sales of high-definition televisions (HDTV) according to the second annual "Inside the Mind of the HD Sports Fan" survey conducted by the Consumer Electronics Association (CEA(R)) and the Sports Video Group (SVG). The survey was unveiled at the 2007 International CES(R). The International CES, the world's largest showcase of consumer technologies, runs January 8-11, 2007 in Las Vegas, Nevada. The survey, conducted between November 27 and December 11, 2006, concluded that nearly 50 percent of sports fans purchased a HDTV for the purpose of watching a specific sporting event. Among the top sporting events driving HDTV purchases: the Super Bowl (13 percent), the Daytona 500 (7 percent), the NBA Finals (6 percent) and the college bowl games (5 percent). "Sports fans have long been enthusiastic about HD content, but this report shows a direct correlation between sports enthusiasm and HDTV sales," said Tim Herbert, CEA's senior director of market research. "Twenty-nine percent of sports fans say HD programming impacts their decision to watch and 41 percent of sports fans believe that watching sports programming in HD is almost as good as attending the event live, proving they are not just enthusiasts but true HD aficionados." "This survey provides sports networks, advertisers and the consumer electronics industry greater insight into how HD sports influence consumer viewing and buying habits," said Ken Kerschbaumer, SVG editorial director. "That knowledge can directly translate into more effective marketing campaigns and programming decisions that can help drive the HD transition." The survey also reviewed the top "favorite events" sports fans watch in HD. The list included: 1. Super Bowl 2. College football bowl games 3. World Series 4. NBA Finals 5. NCAA college basketball tournament While nearly 60 percent of HDTV owners are sports fans, HDTV continues to be quickly adopted by all consumers. In 2006, more than 13.5 million HDTV sets were shipped in the U.S. and CEA predicts that nearly 16 million HDTV sets will be shipped in 2007. This is 57 percent of the total digital television unit sales predicted for 2007. U.S. factory-to-dealer shipments of HDTV have exceeded 30 million units since inception. Methodology CEA's "2006 Inside the Mind of the HD Sports Fan" survey was fielded to an online national sample of 2,631 U.S. adults during the period November 27 to December 11, 2006. Results are weighted to reflect national online demographics. There is an overall margin of error for HDTV owners of +/- 4.6 and an overall rate for HDTV future buyers of +/- 3.2. It was designed and formulated by CEA and SVG. The complete study will be available free to CEA and SVG member companies in early February 2007. Non-members will be able to purchase the study for $499 at http://www.eBrain.org. About the Sports Video Group: The Sports Video Group was formed in 2006 to support the professional community that relies on video, audio and broadband technologies to produce and distribute sports content. Leagues, owners, teams, players, broadcasters, webcasters and consumer technology providers have joined the SVG to learn from each other, turn vision into reality and implement new innovations, while sharing experiences that will lead to advancements in the sports production/distribution process and the overall consumer sports experience. The SVG website is located at: http://www.sportsvideogroup.org, to keep members up-to-date on the latest news and developments. Sports Video Group is a division of Entertainment Technology Partners (ETP), a new venture formed by two leading figures in the entertainment media industry -- Paul G. Gallo and Martin A. Porter -- former executives at United Entertainment Media and producers of 25 magazines, web sites and trade shows serving the business information needs of audio, video, broadcast, musical instrument and systems professionals. About CEA: The Consumer Electronics Association (CEA) is the preeminent trade association promoting growth in the consumer technology industry through technology policy, events, research, promotion and the fostering of business and strategic relationships. CEA represents more than 2,100 corporate members involved in the design, development, manufacturing, distribution and integration of audio, video, mobile electronics, wireless and landline communications, information technology, digital imaging, home networking, multimedia and accessory products, as well as related services that are sold through consumer channels. Combined, CEA's members account for more than $140 billion in annual sales. CEA's resources are available online at http://www.CE.org, the definitive source for information about the consumer electronics industry. CEA also sponsors and manages the International CES - Defining Tomorrow's Technology. All profits from CES are reinvested into industry services, including technical training and education, industry promotion, engineering standards development, market research and legislative advocacy.

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