Consumer uptake of high-definition televison (HDTV) has so far failed to match expectations but there is evidence of widespread awareness and signs that affluent consumers, in particular, will help to drive growth.
A new survey from
Leichtman Research Group (LRG) has revealed that only 4% of US consumers are HDTV owners. Until now, HD-enabled televisions have been considered a niche product (see
HDTV Attracts Premium Viewers, Says Report) but it is hoped that falling prices will help push sales.
Nonetheless, marketers would be well advised to target high earning groups as the study showed that current HDTV owners have an average household income 73% above average. In addition, those most likely to purchase an HDTV set in the next year have an income 54% above average.
| HDTV Awareness, Ownership and Interest, by Income |
| |
|
|
| |
Income <$75,000 |
Income >$75,000 |
| Have heard of HDTV |
69% |
89% |
| Have an HD-capable set |
2% |
12% |
| Very familiar with HDTV (but do not have an HDTV set) |
6% |
13% |
| Investigated getting an HDTV set in the past six months |
4% |
11% |
| Expect to spend over $1,000 on a new TV set in the next year |
3% |
7% |
| Source: Leichtman Research Group, June 2003 |
The study also found that satellite viewers are more disposed to HDTV than their cable counterparts. Some 9% of DBS subscribers in areas where cable TV is available said that they currently own an HD-capable set, compared to 4% of cable subscribers. An additional 13% of DBS subscribers claimed that they were very familiar with HDTV, compared to 8% of cable subscribers.
However, HDTV remains a high-end product and 43% of respondents who have a set, or are very interested in getting one, said they would be very likely to spend $9.95 per month for an HD programming package. It is also revealing that 26% of consumers who plan to purchase a TV set in the next year expect to spend over $1,000.
“With over 275 million television sets in US households, it will be many years before HDTV sets become the norm,” said Bruce Leichtman, president and principal analyst for Leichtman Research Group. “Yet with prices decreasing, purchasing an HDTV set is becoming a default for the high-end TV buyer rather than an active decision to get an HDTV set. This will result in the sale of millions of HDTV sets in the next few years.”
LRG estimates that the total number of HDTV-capable households in the US will rise to 33 million by the end of 2007.
