CES_revised_sales

CES Media Release April 10, 2000

The Consumer Electronics Association (CEA) today called on broadcasters tostep up digital television (DTV) programming efforts while announcing new marketdata and projections that demonstrate the link between DTV sales and availablecontent. The data includes specific sales numbers for DTV receivers in 1999. CEAalso released revised DTV sales projections based on three different programmingscenarios.

According to the new data released by CEA, 17 percent, or 24,631 of the143,218 total DTV products sold in 1999 (including monitors, integrated sets anddigital set-top receiver/decoders) were capable of receiving digital broadcasts.CEA projects total sales of DTV products to reach 600,000 by year’s end.

CES_revised_sales
CES_revised_sales

“Product sales demonstrate consumer enthusiasm for DTV’s high-qualitypicture and sound. Consumers are opting to purchase high-resolution monitorseven when programming is not widely available – to use with DVD players andpre-recorded, digital content,” said Todd Thibodeaux, CEA vice president ofMarket Research. “We can expect receivers to remain a small percentage ofoverall DTV sales until consumers have access to regular, high-quality DTVprogramming.”

CEA also released revised DTV sales projections based on three programmingrollout scenarios. According to CEA, if broadcasters choose the “fastlane” to DTV and demonstrate 100 percent compliance with the FederalCommunications Commission’s (FCC) rollout schedule while providing a highpercentage of digitally-originated content to consumers, DTV product penetrationcould reach 50 percent by 2006. If broadcasters take a “middle of theroad” approach and experience continued station conversion delays whileproviding consumers with a high-percentage of up-converted analog content, DTVproduct penetration will be no more than 30 percent by 2006. Finally, ifbroadcasters choose the “off ramp” on the road to DTV –characterizedby non-HDTV business models and delays related to reopening the DTV standard,DTV product penetration will only be 15 percent by 2006.

“We’ve seen very clearly the link between available content and consumerelectronics product sales. If you look at color TV or DVD, the numbersdemonstrate that product sales take off when content becomes widely available toconsumers,” noted CEA President and CEO Gary Shapiro. “DTV has doneextraordinarily well so far, despite limited programming. Moving forward,broadcasters’ willingness to step up and deliver on DTV could have a significantimpact on the pace of the DTV transition – and the future of free, over-the-airTV. We urge the broadcast community to accelerate their programming efforts anddeliver on DTV.”

The Consumer Electronics Association (CEA) is a sector of the ElectronicIndustries Alliance (EIA), the 76-year-old Arlington, Virginia-based tradeorganization representing all facets of electronics manufacturing and connectingthe industries that define the digital age. CEA represents more than 600 U.S.companies involved in the development, manufacturing and distribution of audio,video, mobile electronics, communications, information technology, multimediaand accessory products, as well as related services, that are sold throughconsumer channels. Combined, these companies account for more than $60 billionin annual sales.

CEA also sponsors and manages the International CES – Your Source forWorkstyle and Lifestyle Technology. All profits from CES are reinvested intoindustry services, including technical training and education, industrypromotion, engineering standards development, market research and legislativeadvocacy.

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