News... May 12, 2003

Nearly 40 Percent of U.S. Homes will be Viewing HDTV Programs in Five Years
HD a competitive differentiator, according to Yankee Group Report
Edited by Charlie White
BOSTON, May 12, 2003 -- Rapid deployment of HDTV by cable operators and growing availability of HD programming will drive HDTV signals to 41.6 million homes (nearly 40 percent of the U.S. total) by year-end 2007, according to new report from the Yankee Group.

The report "HDTV Finally Overcomes Industry Inertia, Set For Rapid Growth," reviews the events affecting HD growth in 2002, and forecasts the numbers of homes that will receive HD signals. It analyzes the drivers of HDTV carriage by cable and satellite operators, and explores the challenges HD programmers face. Select findings include:

  • HDTV's 720p and 1080i formats will coexist for the foreseeable future

  • Despite the incremental cost, HD programming will continue to grow

  • HD can be a competitive differentiator, even for programming with limited visual appeal

  • Programmers without an HDTV product will lose out to competitors as high-value viewers shift to HD programming

  • DBS' retail presence is a competitive advantage, making it available at the same point of purchase as HDTV monitors

  • Advertisers will need commercials in HD within 2 to 3 years
    [an error occurred while processing this directive]
    "Programmers, broadcasters, cable and DBS operators, and device manufacturers all must be HD-capable for the technology to succeed," says Adi Kishore, Yankee Group Media & Entertainment Strategies analyst. "If any link in this chain does not support HD, the consumer will be unable to view HD-quality programming. Regulation that focuses on any one segment in this chain will be inadequate for driving the transition."

    The Yankee Group helps businesses understand the opportunities, risks, and competitive pressures of developing, deploying, and consuming products and services that drive communication or information exchange. Now in its fourth decade, the Yankee Group is based in Boston with offices throughout North America, Europe, Latin America, and the Pacific Rim.


    Source: The Yankee Group
    [an error occurred while processing this directive]