The next generation of television is here. 1998 International CES represents the commercial debut of High
Definition Television. For the very first time, major TV manufacturers are introducing consumer HDTV's and announcing
plans to bring them to market during the fourth quarter of 1998. Show attendees can watch over-the-air HDTV feeds from
experimental DTV stations at the facilities of KLAS-TV (CBS-affiliate) and KLVW-TV (PBS-affiliate). A third in-house
feed will feature Rebo Group programming and productions. Soon, consumers will be able to bring home the many benefits
of digital television and enjoy HDTV broadcasts right in their own living room.
Digital and HDTV Sets for Consumers
Digital and high-definition sets will be on retail shelves in the fourth quarter of this year. Consumers can finally realize the
benefits of high-definition technology: Clear, crisp pictures, and CD-quality sound. Initially, most DTV's will be large screen
sets. As with most new consumer technologies, the initial sets will be expensive. Some price estimates range from
$2,000-5,000 over current set prices for comparable sizes. Other estimates are as high as $8,000-10,000 for HDTV's.
Prices will drop as demand increases and economies of scale are realized. Historically, the price of consumer electronics
products drop 50% within 10 years of introduction.
A Long Life for Today's TVs
Traditional analog televisions will continue to receive broadcast signals until at least the year 2006, and probably longer.
Once the switch to digital broadcasts is complete, today's televisions will be able to receive the new signals with the addition
of a set-up converter box. And, other technologies- like cable, VCRs, DVD, and home satellite- will continue to work with
today's televisions for years to come.
HDTV Broadcasts Coming Soon
(via Broadcast, Cable, Satellites)
Broadcasters have promised there will be at least one digital station in each of the top ten markets by November of 1998.
Broadcasters are required by the Federal Communications Commission (FCC) to transition to digital in the top ten markets
(reaching 30% of U.S. households) by May 1999, and in the top 30 markets (reaching 50% of U.S. households) by
November 1999. Broadcasters will continue to carry traditional analog broadcasts until at least 2006, and probably longer.
In addition, cable operators, like HBO, have said they may have HDTV programming as early as this summer.
Steady Transition from Analog to Digital
Consumers want HDTV. From black-and-white TV to color, from phonographs to CDs, from video tapes to DVD, there
is proof the American consumer has never passed up the opportunity to take advantage of improved audio and video
performance. HDTV is no different. Surveys of consumers who have seen the technology indicate an overwhelming interest
in it's revolutionary picture and sound quality improvements and its potential for inter-activity (See CEMA/Verity HDTV
consumer focus group research). Currently, one in every four households buys a TV set each year- that's 25 million TV sets
a year. And, 18 million of all U.S. households have paid $2,000 or more for their TV sets. With the average life of a TV at
eight years, many of these 18 million households will be ready to replace their analog sets with HDTVs in the first few years
of introduction. Conservative market analysis predicts 30% of U.S households will have digital sets by 2006. All indications
are that this technology will be a tremendous success. |
