55 mln DTT households in EU by 2009

The number of EU households with digital terrestrial television (DTT) is set to reach nearly 55 million by 2009, representing 55% of all digital households in the union and 30% of all TV households, according to a new report from Juniper Research. Furthermore, whilst none of the ten new member states have yet launched DTT services, most are expected to begin transmissions within the next five years, contributing more than 5 million DTT households by the end of the decade.

DVD player profit margins hit $1

Between January and May, the average selling price of a DVD player exported out of the Guangdong province came to $40.80, leaving just about $1 in profit margins for the manufacturers. The province accounts for 84.2% of China’s exports of DVD players and exported 34.5 million of the players during the January to May period.

Consumer electronics prices fell 3.1% in May

The price of 42-inch enhanced definition plasma TVs dropped $86 from April, while 32-inch direct view TV prices fell $52. Portable DVD players cost $30 less compared to the previous month, and 15-inch notebooks declined $65. The monthly pricing monitor of NPD is based on 27 product categories, including televisions, computers, cameras and media players. In May, retail prices for goods in this basket dropped another 3.1%, the sharpest sequential fall since November. In April, the fall was 2%. The overall value of the products is now pegged at $12,362, which is more than $1,000 lower than what it was at the beginning of the year, and about $2,600 lower than in May 2003. This amounts to a decline of 17.4% over the past year. Previously the prices have gone down by 3%.

Digital TV sets will net $70 billion in 2008

Global unit sales for all (not just digital) TVs will grow from 170 mln in 2003 to 196 mln in 2008, as consumers begin to replace their analog sets. This represents approximately $61 bln in 2003, growing to $86 bln in 2008. Further, with currently less than 20% of U.S. DTV-owning households watching actual HD content year 7.1% of global TV shipments were digital; this year IDC expects the percentage will reach higher than 12% to 60% by 2008.

72% would buy a media hub, only 41% know how to use them

Exactly 72% of US adults ages 18 and older display some level of interest in a product that would connect their home entertainment system to the Internet, reports Ipsos-Insight. The researchers decided to skip the industry terms media hubs and media centers sticking to their own “digital den” definition. So 49% are somewhat interested, while 32% are very interested. As for the familiarity, 31% are somewhat familiar and 5% of US adults are very familiar.

Consumer electronics prices fall 2%

In the past 3 months consumer electronics prices fell 2%. Researcher NPD Group tracks the prices of 27 products, and compared to the price levels in March, 19 of them got cheaper. Plasma and rear-projection TV prices dropped $40 per item, DVD recorder prices went down by 9.9% and personal CD players lost 7.2% of their March price. PC desktops are now cheaper by 5%.

70K HDTVs sold in EU in 2003

Strategy Analytics reports that 70,000 high-definition TV (HDTV)-capable displays were purchased in 2003 in Europe. The research firm expects that demand for these sets will grow over the coming years, with 17.4 million European households owning HDTV-capable TV sets in 2008. Strategy projects that 2.6 million – or roughly 15% of all HDTV-capable households, as extrapolated by eMarketer – will actually have HDTV.

Satellite customers are bigger fans of PVRs

Satellite customers are almost twice as likely as cable customers to own personal video recorders (PVRs), such as Tivo and ReplayTV, according to a survey conducted in January by Ipsos-Insight. Ipsos-Insight interviewed 973 adults from 16 to 19 January via telephone, from a nationally representative sample of 1,000 US adults ages 18 and older. It found that for the overall US population, the penetration rate for DVRs is 5.8%. Cable subscribers came in slightly below this rate at 5.6%, and satellite subscribers high above it at 11.4%.

DVD recorder shipments increased 200% in 2003

DVD recorders are expected to slowly take over for DVD players, in standalone products as well as in combination products such as DVD+VCR, DVD+HTiB, and TV+DVD, reports In-Stat/MDR/ In 2004, the first DVD recorder combination products are entering the market. There are several DVD recorder+VCR and Home Theater in a Box (HTiB)+DVD recorder systems scheduled to ship in 2004. The high-tech market research firm finds that in 2003 alone, DVD recorder unit shipments increased over 200%, as more manufacturers entered the market and the prices declined. As more products come on to market, over 50 million DVD recorders are expected to ship worldwide in 2007.

“However, there is still a lot of life in the DVD player market,” says Michelle Abraham, a Senior Analyst with In-Stat/MDR. “Automotive DVD systems and portable DVD players are expected to grow over 30% annually for the next five years. In addition, while households in Europe, North America, and Japan will convert to DVD recorders, markets like China will continue to consume DVD players.” DVD player unit shipments in 2003 were 98 million units and will top 100 million in 2004. The total market will then begin its decline in 2005, though the portable and automotive segments will still continue to grow.

In-Stat/MDR also reports that:

  • DVD players are commonly available in Europe and North America for less than $50. By 2007, prices will be under $30 on a regular basis.
  • DVD recorder prices will drop below $199 for the holidays in 2004. Besides hard drives, step-up features on DVD recorders will include Electronic Program Guides (EPGs), and network connections in 2004, with DTV tuners and DVD-Audio and SACD playback added in 2005.
  • Blue laser player/recorders will become mainstream products, but not before 2008. The two competing blue laser formats will finalize their read-only formats in 2004, so In-Stat/MDR expects more product introductions in 2005.

US consumer electronics sales data

Patterns of consumer electronics sales in the United States. Sales are shown in millions of dollars.

Type of device 1990 1995 1997 1998 1999 2000 2001
Cordless telephones 842 1,141 1,672 1,745 1,808 1,307 1,358
Corded telephones 638 557 515 489 471 393 294
Cellular telephones 1,133 2,574 5,940 6,000 6,066 8,995 8,651
Home computers 4,187 12,600 15,950 16,640 16,390 16,400 12,960
Computer printers (NA) 2,430 3,900 4,188 4,500 5,116 5,245
Computer software 971 2,500 3,450 3,930 4,480 5,062 5,771
Home fax machines 920 919 1,137 647 455 387 349
Digital cameras (NA) (NA) 483 519 1,209 1,823 1,972
Standard color TV 6,197 6,798 6,023 6,122 6,199 6,140 5,130
TV/VCR combos 178 723 684 832 1,014 969 790
VCR decks 2,439 2,767 2,618 2,409 2,333 1,861 1,058
Home satellites 421 1,265 726 733 957 1,102 921
DVD players (NA) (NA) 171 421 1,099 1,713 2,697
Video game hardware 975 1,500 1,650 1,980 2,250 2,700 3,250
Video game software 2,400 3,000 3,900 4,480 5,100 5,850 6,725
Blank audio cassettes 376 334 281 248 208 162 106
Blank videotapes 948 708 695 647 590 567 604
Blank computer media 314 373 500 700 900 1,200 1,550

19 mln digital radios will be sold in 2007

The worldwide digital radio
market, both satellite and terrestrial, will grow to over 19 million
unit shipments in 2007, reports In-Stat/MDR. The
high-tech market research firm believes that new content (stations that
only exist in digital) and data services will drive consumer demand for
radios. These factors are already at work in the digital satellite radio
arena in the US and the digital terrestrial market in the UK.

Several hundred million analog radios are sold worldwide each
year, in the form of stereo receivers, CD boom boxes, portable devices,
alarm clocks, and car stereo systems. Reductions in the cost of digital
tuners will convert the more expensive of the analog radios to digital
by the end of 2007.

Plasma TV, cameraphones “hot” among consumers

The Big Research January survey polled over 9,500 consumers. Of those, 84% said they considered plasma televisions ‘hot’ in 2004, while 80% said the same about picture cell phones. In the same sample, shopping at discount stores was also seen as ‘hot’ by 80% of respondents, while 67% said so about shopping at dollar stores. Of those surveyed who labeled plasma televisions and picture cell phones as ‘hot,’ 28% shop most often for electronics at Best Buy and 23% do so at WalMart. Circuit City ranked third among those buyers at 10%.

Low carbohydrate diets were another ‘hot’ item among consumers; 72% of consumers thought so, while 28% disagreed. But the recent trend toward brightly colored merchandise appears to be waning. Brightly colored apparel was seen as ‘hot’ by 53% of those surveyed; 47% disagreed. Brightly colored housewares had 49% of the votes for ‘hot’ while 51% said no.

IDC revises LCD TV forecast to 50 mln units in 2007

According to new research from IDC, dropping price points and growing interest in high-definition television will drive flat-panel TV display shipments to 50 million units in 2007. Sprouting from meager beginnings at the start of this century, flat-panel TVs accounted for just 0.5% of the worldwide TV market in 2000. As the market continues to accelerate, flat TVs will quickly account for 27% of the worldwide market by 2007. Adoption rates in the U.S. will be even more aggressive.

1.8” hard drives up due to high demand, iPods

Research firm TrendFocus sees hard drive shipments to consumer electronics makers soaring to 55 million units in 2006 from an estimated 17 million this year. Blazing a trail for the market is Japan’s Toshiba, which provides small drives for Apple Computer’s hugely popular iPod music player. Toshiba controls 98% of the market for the 1.8 inch-diameter drives used in the iPod, which can pack up to 10,000 songs in a device the size of a deck of cards, and its small drives are also appearing in a miniature video camera that can record up to two hours of high-definition video.

Sweden to lead the world in digital TV

Informa Media Group estimates that there will be 30.7 million digital TV households in Europe this year, and projects that the UK will claim the greatest share of this market with over 10.8 million. Informa projects over 60 million more households will gain digital TV in the region over the coming years to hit 97.1 million digital TV households by the end of 2010. Informa notes that by 2010, over 97 million digital TV households in Europe will translate into 41% of all TV households in the area with digital TV. Informa notes that in the UK, 66% of TV households will be digital while 81% of TV households in Sweden, 70% of TV households in Switzerland and 60% of TV households in the Netherlands will be digital.

8.24 mln DVD recorders will sell in 2004

Nomura Securities estimates the global DVD recorder market will reach 500 billion yen ($4.6 billion) this year, while Pioneer estimates global demand to more than double next year to 8.24 million units from a forecast for 3.6 million units this year. Market leader Matsushita Electric Industrial Co Ltd., maker of the Panasonic brand, Pioneer and Toshiba Corp gained an early advantage, but competitors at home and abroad are aggressively trying to close the gap with new products.