DisplaySearch's HDTV Conference Findings Indicate That Improving HDTV Choice And Enhancing Quality Are Important Next Steps For HDTV Industry Growth

[The following is a release from DisplaySearch]

October 16, 2008

Consensus among presenters at last month’s DisplaySearch HDTV Conference indicated that the next step for the HDTV industry is one of refinement and improving choice and enhancing quality is the next step for continued HDTV industry growth. “HDTV has simply become TV, with nearly every consumer either owning or understanding the benefits of HDTV and desiring to become an owner,” noted Paul Gagnon, DisplaySearch Director of North America TV Market Research. “As HDTVs become mainstream, the TV supply continues to benefit and prosper. The outlook for growth is still very positive, but it is critical that the industry continues to focus on refinement.” This was just one of many topics discussed at DisplaySearch’s 6th Annual HDTV Conference in Los Angeles. The conference featured two days of content-rich presentations from executives representing all sectors of the HDTV industry, including TV, A/V, HD hardware, service and content providers, as well as movie studios, broadcasters and game companies, discussing the most pressing issues facing today’s HDTV industry. In addition to presentations from DisplaySearch and The NPD Group expert analyst team, presenting companies also included 20th Century Home Entertainment, 3M, Analog Devices, Audiovox Accessories Corporation, AVAD, Belkin International, Blockbuster, Blu-ray Disc Association, Cirrus Logic, Corning Display Technologies, CW Television Network, Denon Electronics, DIRECTV, Dolby Laboratories, Echostar Technologies, Ensequence, ESPN, ICF International (EPA Representative), IDEO, LCD TV Association, LG Electronics USA, Macrovision, Panasonic Corporation of North America, Pioneer Electronics (USA), Plasma Display Coalition, Samsung Electronics America, Sears Holdings Corporation, Sezmi, Sling Media, Sharp Electronics, SRS Labs, THX Ltd, UpdateLogic, Vizio Inc., Walt Disney Studios Home Entertainment and Xceive. The HDTV Conference featured sessions on many topics: * State of the Art: Beyond Ubiquitous High Definition * Discs, VOD, and Digital Downloads: The Future of Packaged Media in the Face of Alternatives * The Connected Television: Content from Across the Living Room, the House and the World * Red, Blue and Green: Television in an Age of Environmental Consciousness * Replacing Analog: Courting the Late Adopter * Turning User Experience into a Competitive Advantage * Reinvigorating the Audio Experience: Integrated, Speaker Bars, and Home Theater * Tru2way: Is Cable Finally Tuning into Openness? * Retailer Panel Additional Noteworthy Conference Findings The transition to HDTV is well underway, and many households are now watching their favorite programs in HD. But there is still a substantial number of homes that do not yet enjoy HDTV, or other rooms in the homes of HDTV owners that can be upgraded—leaving a substantial market opportunity. Content and distribution are expanding the selection of HD programming, further encouraging the adoption of HDTVs. The overall adoption of digital downloads is growing but remains fairly low in comparison to other methods of consuming video. Also, the number of devices that can play back digital downloads is increasing, with game consoles, standalone set-tops, and BD players now part of the mix. DisplaySearch’s Paul Erickson pointed out that a primary limitation is broadband—both penetration and speed—and that it will be some time before digital downloads catch on as mainstream consumers shift their disc-based consumption behavior gradually. The ongoing conversion from analog CRT TVs to digital flat-panel sets has created challenges and opportunities for audio, primarily led by the commoditization of TVs, which leads to compression of profits and thus costs. The consensus from the audio session indicated that algorithms and technologies from SRS Labs, Dolby and others will continue to enable higher quality audio performance for consumers, and audio electronics suppliers—such as Analog Devices and Cirrus Logic—can implement these approaches. Left unresolved was what form the end-products would take, and who in the value chain would benefit from these changes. The television industry realizes the need to become more "green," including lowering power consumption and using more environmentally friendly materials. They are taking big steps towards doing so, with the next step communicating this message to consumers. Programs like Energy Star are a good approach. Many consumers are now aware of the DTV transition, but some are still unclear what to do. Issues like how to properly set up a digital converter box and ensure a proper antenna still need to be addressed in the few remaining months. Panasonic North America's CTO Dr. Paul Liao cited outside research that 72% of US consumers utilize cable TV, and internal research indicating that tru2way TVs’ cost savings (from not having to rent a separate set-top box) and simplicity were the two features that appealed most to consumers. For connected TVs the dreams of the industry about HD via broadband will remain dreams, until the infrastructure is improved. However, there are increasing demands from consumers for new connected applications and these are evolving rapidly. The development of television is moving away from just display technology into design and seamless usage experiences. The new display technologies lower power and versatile form factors promise new usage patterns away from just passive viewing. Data from The NPD Group’s showed that average pricing in July was about $375 for Blu-ray and $73 for up-converting players. Average surveyed price at which consumers would be willing to purchase a Blu-ray player was about $260. A gap remains between where Blu-ray is priced and where consumers are willing to buy. The 2008 HDTV Conference Proceedings are now available for $995, which includes an electronic download of all presentations. To purchase, please visit www.displaysearch.com/hdtv.

Read More: