Demand is growing across Europe for high definition television (HDTV), with more then 17 million homes expected to have HD-equipped sets by 2008, according to a new report from Strategy Analytics.
HDTV is a television display technology that offers higher resolution pictures and sound quality similar to that of a compact disc. It typically uses digital, rather than analogue, transmission as the bandwidths required to carry the information are large.
An attempt to launch the technology in Europe over a decade ago provide something of a lacklustre failure, although in Strategy Analytics’ report – HDTV In Europe: This Time It’s For Real – the group claims that HDTV is once again appearing on the agenda of European broadcasters and consumer electronics manufacturers.
According to the latest estimates from Strategy Analytics, Europeans bought 70,000 HDTV displays in 2003 and demand is growing rapidly as consumers buy the latest LCD and plasma flat panel TVs. By 2008, analysts predict that 17.4 million homes will have HD-capable TV sets; 2.6 million of these homes will have bought set-top boxes to receive HD broadcasts.
Europe’s first HDTV broadcaster, Euro1080, has just launched a satellite-based service offering a carousel of four hours of programming per day. Other broadcasters are known to be examining the opportunity, but have made no commitments as yet. In spite of this, Strategy Analytics believes that the beginning of mainstream HD programming in 2006 will drive a further wave of adoption.
“Europeans are now watching their US rivals with some degree of envy,” says David Mercer, principal analyst at Strategy Analytics. “In spite of the difficulties the Americans have faced in launching HDTV, demand there is now growing steadily. Europe realises it cannot afford to be left behind.”
Separate forecasts from eMarketer for the US sector predict that there will be 16.4 million HDTV homes by 2006 (see INSIGHTanalysis: Digital TV To Reach 50% Of US Homes By 2005).
