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On occasion, we receive articles submitted from others in the HDTV industry that we think you may be interested in. In the past, we have just published these to our "Articles" section, but we thought it would be more appropriate to place these in a new "From the Industry" column in our new "Columns" section.

Enjoy,
- Dale & Shane

By Paul Gagnon, Director North America TV Research, DisplaySearch

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In 2007, the flat panel display industry reached the $101 billion mark, and it is expected to grow to $131 billion by 2012. While there are many display-centric applications on the rise such as notebooks, mobile applications, digital photo frames, home appliances and navigation systems, flat panel HDTVs continue to comprise 50% of all 10-inch and larger LCD panels shipped on an area basis-a segment that on a revenue basis, hit the $33.5 billion mark in 2007, $11 billion more than in 2006.

DisplaySearch predicts the cumulative number of HDTVs in the US will more than triple from 51 million at the end of 2007 to 169 million at the end of 2011. Strong consumer demand for 1080p LCD TV products throughout 2007 also contributed to a strong year of revenue growth overall, despite sluggish consumer sales in the final weeks of 2007. This article will provide an overview on some of the key drivers that indicate the future is bright for both the LCD and HDTV industries.

As set prices fall rapidly and picture quality improves continually, HDTVs are dominating the North American TV market. As shown in Figure 1, just 27% of TVs shipped during 2005 in North America were HD (defined as 720 lines of vertical resolution or more); in 2008 this figure is expected to jump to 94%. Figure 1 also reveals that TVs with 1080 progressive lines (1080p) have a bright outlook despite the fact that they sell for a substantial premium. The share of 1080p TVs in the 40-inch and above segment is expected to surge from less than 4% in 2005 to 64% in 2008, while selling for a 56% premium over 720p/1080i TVs. 1080p HDTVs are expected to reach an 84% share of 40-inch and larger TVs by 2011.

Figure 1. HD and 1080p Unit Share Forecasts

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Why are 1080p TVs forecast to be so successful? Because 1080p delivers the best picture possible and is as close to "future proof" as consumers are going to get. In addition, it is the format best suited to both HD broadcast and packaged media, as most HD broadcasts in the US are 1080i (aside from ABC, ESPN and Fox) and 1080i images scale better to 1080p than 720p on fixed pixel displays like LCD and plasma. Moreover, PlayStation 3 and most next-generation DVD players able to output content at 1080p, allowing consumers to maximize picture quality from their HD content and hardware. Finally, 1080p offers the highest level of pixel density for a smoother image, particularly important at larger screen sizes, which can reveal the grid structure inherent in fixed pixel displays. Retailers, TV brands and LCD panel manufacturers all stand to profit from 1080p TVs, which offer improved profitability over 720p counterparts. With LCDs facing supply constraints, DisplaySearch believes it will become increasingly difficult to find 720p TVs over 40-inches in the US TV Market.

As the number of HDTVs and the amount of HD programming continues to grow, HD service will inevitably surge, and also benefit from the anticipated end of analog broadcast in February 2009. Both content and service providers are working to increase the amount of HD content available, without driving up costs to the consumers, particularly important considering only about half of HDTVs are currently receiving HD service.

At its 10th Annual US FPD Conference, DisplaySearch will feature a session on "The Maturing FPD TV Market and Global TV Outlook" discussing the implications for growth and profitability in a mature flat panel TV market, as well as industry drivers such as increased availability of HD content. Executives will also discuss the latest technology advancements that will fuel growth, especially in larger screen sizes. Sony's Dr. Randy Waynick, Senior Vice President of Marketing in the Home Products Division, will give a presentation on OLED TVs during the session, and DisplaySearch will also provide the latest update on the state of the Global TV Market. Speakers include:

  • Paul Gagnon, Director, North American TV Research, DisplaySearch
  • Hide Harada, President, Panasonic US
  • Dr. Randy Waynick, Senior Vice President, Marketing, Home Products Division, Sony
  • Scott Ramirez, Vice President Marketing, TV Group, Toshiba America Consumer Products LLP

In addition, the DisplaySearch US FPD Conference will also have a session on the "Quest for the Best Looking Picture at the Lowest Cost" examining the most important developments for improving picture quality and lowering costs in the flat panel TV market. Are today's products future-proofed or are there critical developments right around the corner? Sample topics include LED dimming, 120 Hz with motion estimation and motion compensation, RGBW color filters, a‑Si based AMOLEDs, color filter on array (COA) technology, and higher luminous efficiency plasma panels.

  • Ross Young, President and Founder
  • Brian H. Berkeley, Vice President, LCD Business, Samsung Electronics
  • Guido Voltolina, Director, Image Technology, Dolby Laboratories
  • Bruce Berkoff, Chairman, LCD TV Association

The DisplaySearch 10th Annual US FPD Conference will be held March 10-13, 2008 at the Hilton La Jolla Torrey Pines in La Jolla, California. The event will focus on all major and emerging FPD applications, as well as production equipment and key components and materials. It will boast two-and-a-half days of general sessions, many interactive sessions, three days of cutting-edge exhibits, and numerous networking opportunities Attendees will gain an instant return on investment by walking away with tens of thousands of dollars worth of market data and industry insight.

Other presenting companies include AMD, AMIMON, AU Optronics, Dell, Dolby Laboratories, Genesis, Goldman Sachs, Intel, Kodak Display Business, NEC, Nokia, Samsung, Sony, Panasonic, Universal Display, Verizon and more.

To register for the DisplaySearch 10th Annual US FPD Conference and see the full agenda, please follow this link.

Posted by Shane Sturgeon, February 28, 2008 7:45 AM

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About Shane Sturgeon

Shane Sturgeon is the Co-Publisher and Chief Technologist of HDTV Magazine, an industry publication with HDTV roots going back to 1984, when Dale Cripps founded The HDTV Newsletter. Today, HDTV Magazine is a leading online resource for HDTV news and information and captures the eyes and imaginations of over 3 million visitors annually. Mr. Sturgeon has a background in information technology and has served in various consulting capacities for Fortune 500 companies such as J.P. Morgan Chase, Verizon Communications, Proctor & Gamble and Nationwide Insurance. He has a Bachelor of Science in Computer Science from Wright State University.