DTV Outperforms Early Sales Of Color TV, VCR And DBS

Content Critical To Widespread Adoption

22-May-00

According to figures released by the Consumer Electronics Association (CEA), early sales of digital television (DTV) outpace those of color TV, video cassette recorders (VCRs), and digital broadcast satellite (DBS), combined. Speaking at the International Electronic Cinema Festival (IECF) in Portland, Oregon, CEA President and CEO Gary Shapiro called DTV ""our biggest blockbuster yet,"" while expressing concern about limited DTV and high definition television (HDTV) programming availability. According to CEA, if DTV unit sales reach the projected 425,000 in 2000, bringing total DTV set sales to more than 500,000, it will have outperformed combined sales of color TV, VCRs, and DBS during the same three-year time introductory period (445,000). Dollar volume for DTV sales showed a similar trend. ""These numbers are extraordinary for an introductory consumer electronics product. It's looking like DTV may turn out to be our studio's biggest blockbuster yet,"" said Shapiro. ""Consumers are excited about the technology and many are buying it. But the magic of DTV is more than extraordinary hardware."" Shapiro outlined results of DTV owner research conducted by CEA in 1999. Overall, 79 percent of DTV owners say their DTV meets or exceeds their expectations. For video quality, the number is 100 percent. Audio quality is 74 percent. Availability of programming, however, meets expectations for only 28 percent. ""As we move forward, broadcasters' willingness to deliver on DTV and HDTV will have a significant impact on the transition,"" said Shapiro. Last month, CEA released new long term DTV sales projections based on three levels of programming scenarios. According to CEA, if broadcasters choose the ""fast lane"" to DTV and demonstrate 100 percent compliance with the Federal Communications Commission (FCC) rollout schedule while providing a high percentage of digitally-originated content to consumers, DTV product penetration could reach 50 percent by 2006. If broadcasters take a ""middle of the road"" approach and experience continued station conversion delays while providing consumers with a high-percentage of up-converted analog content, DTV product penetration will be no more than 30 percent by 2006. Finally, if broadcasters chose the ""off ramp"" on the road to DTV and push for a change in the DTV standard, DTV product penetration will be 15 percent by 2006. CEA has revised its 2000 unit sales projections to reflect lackluster programming. The Consumer Electronics Association (CEA), a sector of the Electronic Industries Alliance (EIA), represents more than 600 U.S. companies involved in the development, manufacturing and distribution of audio, video, mobile electronics, communications, information technology, multimedia and accessory products, as well as related services, that are sold through consumer channels. Combined, these companies account for more than $60 billion in annual sales. CEA also sponsors and manages the International CES - Your Source for Workstyle and Lifestyle Technology(SM). All profits from CES are reinvested into industry services, including technical training and education, industry promotion, engineering standards development, market research and legislative advocacy.