MaxxoMedia Digital Media and Entertainment Trends

KENRADIO.COM

One in six households in the United States now have at least one high definition-capable TV (HDTV), an increase from about one out of every fourteen households just two years ago, according new research from Leichtman Research Group.

* The mean annual household income of HDTV households is 42% above average
* 26% of households with annual incomes of over $50,000 have an HDTV compared to 7% of households with annual incomes below $50,000
* 26% of HDTV owners have more than one HDTV – up from 11% last year
* 29% of HDTV owners are likely to get another HDTV in the next year – up from 18% last year
* Only one-third of adults have heard of the digital TV transition, scheduled for February 17, 2009

The high demand and falling prices for high- definition has driven an already booming TV business for the 2006 holiday shopping season in the U.S., according to NPD Group. With HDTV content selection improving and prices decreasing consumers are upgrading older, smaller TVs. Flat-panel televisions, for example, offer larger screens while taking up less space than many older televisions, while microdisplay televisions offer a cinematic home theater experience at affordable prices. HDTV sales have increased 52% in unit volume and 39% in dollar volume from January through September of 2006 compared to the same time period in 2005. Sales of HDTVs during the 2005 holiday season (November and December) topped $2.2 billion with over 1.4 million units sold and are expected to continue to grow this year. Affordability is helping to boost HDTV sales. The average price of an HDTV set is down more than 8% year-to-date (January through September) compared to the same time last year. Prices for LCD and plasma TVs dropped significantly from the 2004 holiday season to the 2005 holiday season with 35% and 41% declines. KENRADIO.COM