21-Sep-99

When Will DTV Stocks Rise?

Stock prices of television manufacturers have yet to be affected by the introduction of digital television. DTV is expected to be the next high technology trend to be adopted by the majority of American households. CEMA projects a 30 percent household penetration in the first eight years from market introduction, an experience similar to CD players and VCRs. Even with this aggressive projection of the future capture ate of the available market, it will take time for consumers to adopt DTV. Until then, shareholders of television manufacturers will have to patiently wait for DTV sales to enhance profits and share values. The new wave of DTV has begun. In 1997, the Federal Communications Commission (FCC) gave broadcasters a due date to change their old studio broadcasting and recording equipment from analog to digital by 2006. Recently, broadcasters have begun to integrate their production equipment to provide high-definition television (HDTV) to the public. Source: CEMA