For more information, contact Tom Edwards, Analyst, FNPD INTELECT Market Tracking, 800 368 8801, extension 4821.
Digital Television Is Happening!
NPD INTELECT Market Tracking data indicates that customers are purchasing Digital Television receivers from retailers throughout the United States. Consumer purchases began a dramatic increase when television broadcasters expanded their coverage and their airtime of high definition programming. Unit sales of all televisions have been strong throughout 1999 with purchases from retailers up 15 percent in the last quarter alone. Rear projection television sales, where digital television will have the greatest impact have had double-digit percentage growth in every month of 1999, and 1998 was a good year for projection TV. Most important is the dollar growth of digital television since September .. especially High Definition-Ready rear projection TV. In August, before the broadcast schedule began, DTV represented only 2.6 percent of consumer dollar expenditures of all televisions. In September, DTV represented 3.5 percent of dollars spent. October purchases increased to 5.0 percent and November jumped to 6.2 percent. The big growth was purchases of DTV rear projection televisions. In August, 7.9 percent of the consumer purchase dollar went to DTV rear projection TVs. September was 10.6 percent and October was 13.8 percent. In November, of the consumer purchase dollars spent for rear projection TV, 20.2 percent were spent on DTV product. Most of these were high-definition-ready models. We'll acknowledge that there have been some product shortages of DTV equipment but we feel that DTV had been the classic ""chicken and the egg"" situation. The retailers need program material in order to sell DTV and HDTV product. The program providers need a level of product saturation to justify their programming expenses. It may be a little early to declare a winner but it appears that the customer is making the commitment to have the best quality programming available for themselves and their families. It is not just the TV; it is an audio/video lifestyle experience with home theater, DVD and satellite.