CEA Reports DTV Sales Outpace Color TV, VCR, and DBS in Introductory Period
Summary
The Consumer Electronics Association reported that early DTV factory-to-dealer sales outpaced introductory sales of color TV, VCRs, and DBS in both unit volume and dollar terms. CEA President Gary Shapiro praised DTV's market momentum while warning that limited programming availability threatened to slow the transition.
According to figures released today by the Consumer Electronics Association (CEA), early factory-to-dealer sales of digital television outpace introductory sales of other hot video products. Speaking at the International Electronic Cinema Festival in Portland, Oregon, today, CEA President and CEO Gary Shapiro highlighted positive DTV sales trends, while at the same time expressing concern about limited DTV and HDTV programming availability.
According to CEA, if DTV unit sales reach the projected 425,000 in 2000, bringing integrated DTV sets and stand-alone DTV monitor sales to more than 550,000, it will have outperformed unit sales of color TV and VCRs individually during the same three-year introductory time period. Projected third-year sales of DTV outpace those of DBS (275,000), one of the fastest selling consumer electronics products ever. In dollar volume, DTV sales show a similar trend - but surpass early dollar sales of these three products combined. If DTV sales in dollar volume reach the $1.1 billion projection for 2000, total dollar sales of DTV ($1.4 billion) will exceed combined sales of color TV, VCR and DBS during the same introductory time period ($1,046,000), on a non-inflation adjusted basis.
"These numbers are extraordinary for an introductory CE product. It's looking like DTV may turn out to be our biggest blockbuster yet," said Shapiro. "Consumers are excited about the technology and many are buying it. But the magic of DTV is more than extraordinary hardware."
Shapiro outlined results of DTV owner research conducted by CEA in 1999. Overall, 79% of DTV owners say DTV meets or exceeds their expectations. For video quality, the number is 100%. Audio quality is 74%. Availability of programming, however, meets expectations for only 28%.
"As we move forward, broadcasters' willingness to deliver on DTV and HDTV will have a significant impact on the transition," said Shapiro.
Last month, CEA released new long term DTV sales projections based on three levels of programming scenarios. According to CEA, if broadcasters choose the "fast lane" to DTV and demonstrate 100 percent compliance with the Federal Communications Commission (FCC) rollout schedule while providing a high percentage of digitally-originated content to consumers, DTV product penetration could reach 50% by 2006. If broadcasters take a "middle of the road" approach and continue to delay station conversion while providing consumers with a high-percentage of up-converted analog content, DTV product penetration will be no more than 30 percent by 2006. Finally, if broadcasters choose the "off ramp" on the road to DTV and push for a change in the DTV standard, DTV product penetration will reach only 15 percent by 2006. CEA has revised its 2000 unit sales projections to reflect lackluster programming.
