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To: DiViT who wrote (45639)	9/30/1999 9:37:00 PM
From: John Rieman	Respond to of 50808

"There are over 1.4 billion television sets in the world and 250 million in the US.".................... gii.co.jp Digital Broadcast 99: Worldwide Market for Digital Broadcast Systems and Equipment MAIN TOPICS OF THE REPORT Market Assessment Digital Broadcast Developments Worldwide Digital Penetration Terrestrial Digital Broadcast Regulatory Environment Technology Analysis Multicasting Internet Datacasting Pay-Per-View Interactivity HDTV and SDTV Competitors Major US Network Company Profiles Digital Broadcast Satellite Company Profiles Cable Operator Profiles MMDS Service Provider Profiles Digital Transmitter Manufacturer Profiles TV Manufacturer Profiling Set-Top Box Manufacturer Profiles Worldwide digital broadcast services, including digital satellite, digital cable, and digital terrestrial, will have a 43% compound annual growth rate from 1999 to 2005 based on a study by Allied Business Intelligence, Inc. (ABI). ABI's digital TV research study "Digital Broadcast 99 - Worldwide Market for Digital Broadcast Systems and Equipment," investigates and forecasts growth in the worldwide digi-tal satellite, digital cable, digital terrestrial, digital television set, digital TV station and transmitter, and digital set-top box markets. The report has a heavy concentration on the US and worldwide digital terrestrial TV mar-ketplace. ABI estimates that by the end of 1999 there will a 2.5% worldwide TV household digital penetration for all digital broadcasting services. This penetration rate will rise to 21% by the end of 2005. Global digital TV and set-top box sales will start to take off in 2003 ignit-ing a digital terrestrial annual growth rate of 121% and a penetration of 5.2% of all TV households over the next 5 years. Digital satellite will have the largest number of worldwide digital subscribers in 2005 with 94.7 mil-lion. The US has a current penetration rate of 16% for digital services for all TV households, with the majority consisting of DBS subscribers. ABI fore-casts that the total US digital services penetration rate will increase to 60% by 2005. The most active digital broadcast regions are North America and Europe, with 92% of all digital subscribers. In these two regions, the US and the United Kingdom have the most activity, having deployed digital satellite, digital cable, and digital terrestrial services. There are over 1.4 billion television sets in the world and 250 million in the US. Transitioning to digital TV sets is going to take some time due to lack of content, cost, signal reception, and compatibility. ABI estimates that there will 3.8 million digital TV sets sold in the US in 2005 account-ing for 15% of new TV set sales and a calculated penetration rate of 3.6% for all TV sets in the U.S. There is no doubt that the TV broadcasting trend will be to move to digi-tal systems. Growth may be slower than expected if economic woes con-tinue in Asia and South America, but when economies start to turn around, so will deployment of digital broadcast systems. The convergence of the computer with the television set will contribute to a wider audience for dig-ital services, however, entertainment will still attract the majority of sub-scribers to digital services. Real video-on-demand, when it arrives, will be a major source of income for the broadcasters.