Cable, Content, Copy Protection Are Keys To DTV Transition, Says CEA

Digital Television Manufacturers Are Providing Variety Of Products, Enhancing Affordability And Improving PerformanceAlmost Half Of All Large Screen TV Sets Now Digital TV

25-Apr-01

TV manufacturers are doing their part to move the digital television (DTV) transition forward, said Consumer Electronics Association (CEA) President and CEO Gary Shapiro at the opening of NAB 2001, the National Association of Broadcasters' annual trade show held through Friday, April 26. Shapiro went on to challenge other industries to rededicate themselves to the transition.""In just three short years television manufacturers have produced more than 250 models of DTV products and have enhanced their affordability even while improving the performance of these products,"" said Shapiro. ""Consumers have overwhelmingly embraced the digital experience. First quarter sales of DTV sets and displays totaled 234,558 units, or dollar sales of more than $462 million, representing a unit increase of 158 percent over last year's first quarter results. Now it is time for all industries with a stake in the DTV transition to join us and step up to the plate and make a renewed commitment to moving the transition forward.""Keys To The DTV TransitionShapiro outlined three areas that he says are critical to fueling the DTV transition. ""First, broadcasters must transmit an ample supply of digitally-originated, high quality programming,"" he said. ""The history of the consumer electronics industry demonstrates without a doubt that consumer acceptance of new technologies is driven by the widespread availability of content.""While CBS, PBS and a few local stations have shown a strong commitment to the DTV transition, most broadcasters have failed to meet their obligation to consumers looking for high definition (HD) programming.""Shapiro pointed to a recent survey conducted by Digital Tech Consulting which found that of the approximately 27,744 hours of analog network programming broadcast per year, about 3.6 percent (approximately 1,008 hours per year), is broadcast high definition. Broadcast networks are making about 21 hours per week of high definition programming available to their owned and affiliated stations. The number varies slightly when special event programming, such as the Super Bowl, or periodic HDTV movies are aired in high definition. Most of the other DTV programming being broadcast by the affiliates and the networks is up-converted analog.""Second,"" Shapiro argued, ""cable providers must carry DTV programming so that the seventy percent of consumers who receive their primary television signal via cable can participate in the DTV transition. Furthermore, cable providers should be required to carry digital programming in the same format that it is transmitted over-the-air. A program broadcast over-the-air in high definition should be carried on cable in HD.""Copy protection is the third key to the DTV transition, according to Shapiro. ""Efforts to protect DTV content from illegal copying and distribution must not undermine consumers' usual and customary fair use and home recording rights,"" Shapiro declared. ""We must never forget that consumers are the key to the success of this transition. The public policy issues surrounding the transition must be resolved with a focus on ensuring that consumers have access to a broad array of digital and high definition content.""DTV Availability And VarietyShapiro argued that television manufacturers are doing their part to drive the DTV transition. He reported that digital products now comprise nearly 50 percent of the total number of products sold in big screen segments of the U.S. television market. In addition, based on recent sales, the industry is selling 15 decoders for every 100 DTV sets or displays.""Today, consumers have a wide variety of DTV choices,"" noted Shapiro. ""Manufacturers have produced or will produce in 2001 over 230 models of DTV displays and integrated sets, and more than 20 set-top decoders.""That is why sales of DTV sets and displays reached 648,429 in 2000, accounting for $1.4 billion in consumer investment. And that is why CEA forecasts that 2001 sales of DTV sets and displays will grow 80 percent to 1.125 million, with consumer investment climbing to a cumulative $4.7 billion. We have already seen first quarter numbers to substantiate this: In the first quarter of 2000, DTV sets and displays sales totaled 90,821 units; in 2001 they totaled 234,558 units. Consumers want the best quality DTV for their money and they want the best quality digital programming available.""Also in the first quarter sales of 16:9 projection DTVs were up 150 percent from first quarter 2000.DTV AffordabilityShapiro also cited statistics showing that the prices of DTV products are declining rapidly. Since their introduction, the average wholesale price of DTV sets and displays has dropped 44 percent from an average of $3,500 in late 1998 to $1,955 in January 2001. Prices, on average, are falling more than two percent each month. At their current pace, wholesale prices of DTV sets and displays could fall to $1,500 by the end of the first quarter of 2002.""This price decline of DTV products is much more rapid than the initial price declines of products like CD players, VCRs and large-screen analog TVs,"" said Shapiro.In addition, this year will bring DTV standard definition sets introduced under $1,000 and true HDTV sets priced under $2,000. The current average factory price of a direct-view DTV is less than $1,500 and projection sets are less than $2,000. A wide variety of set-top boxes in the $600-$1,000 range also have been introduced, including boxes that incorporate reception for satellite and over-the-air DTV signals as well as analog signals.DTV PerformanceThe latest generation of DTV products improves upon the high-quality products already in the marketplace. As recent tests conducted by the Federal Communications Commission (FCC) and the ATSC show, DTV receiver performance continues to improve significantly with each successive product generation.""The DTV transition is in full swing,"" Shapiro stated. ""Our research shows as more and more consumers purchase DTV products they are looking for high quality HDTV programming to help get the maximum benefit out of their product. We hope that the broadcasting community will help meet this consumer demand and that the other key issues revolving around the transition are quickly resolved.""CEA remains committed to working with broadcasters, cable providers and all other interested parties to ensure the fastest, most consumer-friendly transition to DTV.""For more information about the Consumer Electronics Association (CEA), visit www.ce.org.

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