The uptake of HD technology in Europe is accelerating rapidly but there remains a “significant” content gap caused by the lack of HD programming on free-to-air platforms across the region.
That’s the conclusion of the latest report from media analysts Screen Digest which says that by the end of 2007, 18 per cent of the 165 million European TV households were equipped with HD displays.
But less than one per cent of these (approximately one million) were fully “HD enabled” – that is equipped with an HD set-top box and an HD subscription enabling them to watch HD broadcasts.
The report forecasts that by 2012 the situation will have improved little – only 20 per cent of the 85 per cent of European households with HD displays will actually be watching in HD.
It says that ultimately HD will become the default choice of TV viewers but in the most part they will have to wait at least until 2015 to enjoy the content for free.
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The Entertainment Merchants Association (EMA) expects sales of Blu-ray disks in the US to exceed those of standard DVDs by 2012.
In its latest Annual Report on the Home Entertainment Industry, the EMA reports that home video continues to dominate the movie market.
This segment of the market had sales of approximately US$24 billion, making it the largest segment of consumer movie spending by far, accounting for 49% of total consumer movie spending in 2007.
In the video game market, game software sales increased 34% in 2007, to a total of US$8.6 billion.
The idea that one movie could transform a technology from niche to mainstream may seem extreme.
Yet that is what Craig Kornblau, president of Universal Studios home entertainment, is suggesting will be the effect of the yet-to-be released new thriller starring Angelina Jolie.
The studio executive believes the film’s highly visual nature could be the trigger to mass sales of Blu-ray devices.
James McAvoy plays an average guy who’s recruited by Jolie to become a contract assassin.
Kornblau said he thought Wanted, which is released in US cinemas on Friday, could do for HD disks what The Matrix did for the standard-def DVD.
Manufacturers will have to install features currently only available as paid-for add-ons in top-of-the-range HDTV models if sales growth is to be sustained.
That is the conclusion of a report by research firm DisplaySearch which suggests that sales of HDTVs will peak in the next two or three years.
It goes on to say that sales will then fall unless manufacturers can add compelling features that consumers are willing to pay for.
Calvin Hsieh, the director of research at DisplaySearch, said internet connectivity, full 1080p resolution, PVR capabilities and upgraded HDMI port specifications need to become standard fare by next year.
The refund rate on LCD TVs has increased to 25-30 per cent in North America despite a drop in prices by branded TV retailers.
Many vendors reduced prices for 32-inch and 40-inch LCD TVs in May in an attempt to boost sales.
However, the move has led to a rise in the number of products being returned as viewer expectations about the quality of high-definition images rises.
Sony Pictures has announced that it is bringing one of the world famous Cirque Du Soleil’s performances to Blu-ray later this year.
“Cirque Du Soleil: Corteo”, by the celebrated troupe that has thrilled audiences on five continents, is due to be released on September 2nd.
Sony said disk would capture all the magic of the performance in stunning high definition. No specs or special features have been announced at this time.
The move is the latest digital venture by the circus, which has been seen by close to 80 million spectators in over 200 cities.
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The head of the UK’s Freesat digital service believes viewers will begin to resent paying for HDTV as increasing numbers regard it as the new “standard”.
Emma Scott, managing director of Freesat, which launched in May, said there were already over 10m HD ready TV sets in UK homes.
But at the time of Freesat’s launch only around 5 per cent of those HD ready homes were actually watching television programmes in high definition – and by subscription.
Addressing the Broadcast Digital Channels Conference 2008 earlier this month, she said consumers and retailers wanted HD content– but it was the broadcasters that had taken a while to catch up.
“Free HD is a long term opportunity for broadcasters and for Freesat,” she said. “HD is not a gimmick, it’s a new standard for television and one which every broadcaster I’ve met would love to deliver its content in."
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The US’s leading provider of HDTV has credited its 95 channels of HD content as one of the main reason for increasing subscribers even as the economy falters.
Paul Guyardo, DirecTV’s chief marketing officer, said the company had not been greatly affected by the US economic slowdown.
DirecTV added 275,000 subscribers in the first quarter, compared to just 35,000 for rival Dish Network.
He attributed the satcaster’s market-leading HD offering as a major factor in the increase.
“I don’t want to say that we are recession-proof, but I will say that we have not been dramatically affected by the recession,” he said.
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Sales of LCD and plasma TVs showed a 53 per cent year-on-year increase in the US for the first quarter of 2008, with more than 7.5 million units sold.
This represents a 7 per cent increase over industry projections for the period.
While analysts in Japan have attributed a 35 per cent increase in flat-panel TV sales during the first half of June to the upcoming Beijing Olympics, industry executives in the US are being more cagey.
But what those attending the DisplaySearch TV Supply Chain Conference in San Diego did agree on was that despite the state of the US economy, the North America TV market remains robust – so far.
The race to perfect a wireless HDTV system is being contested by three competing technologies, each one with particular advantages without offering the complete package.
But within three years one will have emerged as the dominant system, according to a study by ABI Research.
This is expected to take global installations from an estimated 100,000 this year to the milestone one million by 2012.
Steve Wilson, principal analyst on the report “Wireless Video Cable Replacement Market and Technologies”, said the wireless HDTV market was still in its “incubation” stage.
He said a “battle of technologies” was being fought by the three contending systems, loosely characterised as 5 GHz, 60 GHz, and ultra wideband (UWB).