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DTV Sets


  • 2005-2006 Plasma TV growth rates: Units up 48 percent; Dollars up 35 percent
  • Accelerated tuner mandate to expand digital adoption rate
  • Displays with 1080p resolution on the rise

Spurred by a ramp-up in manufacturing supply and significantly reduced prices, sales of flat-panel televisions began a rapid ascent in 2005 that will extend well through 2006. Flat-panel TVs, which include primarily plasma and liquid crystal display (LCD) televisions, have benefited from an onslaught of new Asian flat-panel TV brands that have helped to accelerate price cutting during the last three years.

Meanwhile, a wide array of next-generation rear projection televisions driven by micro-display technologies, including Digital Light Processing (DLP) systems, tiny LCD screens and Liquid Crystal on Silicon chips, is expected to make big inroads toward the eventual replacement of standard CRT-driven rear projection televisions and direct-view CRTs in coming years.

Aspect Ratio's Bring New TV Dimensions
Many of the first digital television (DTV) monitors sold had screens conforming to a traditional 4:3 aspect ratio, commonly used in analog TV sets. But widescreen displays have gained ground in recent years. In 2005, widescreen TVs accounted for 79 percent of all DTV unit purchases and 94 percent of all DTV factory dollar volume, according to CEA research.

In CEA nomenclature, a 4:3 DTV display can be classified as an HDTV set or monitor if it is able to fit the full width of an HDTV image with full top-to-bottom resolution inside the screen. This process is often called letterboxing. This presents a wide picture with black bands at the top and bottom of the frame.

Widescreen sets will stretch the letterbox frame to fill the screen without showing the bands. In addition to HDTV broadcasts, various standard definition programs are available in letterbox format. This is often found on DVD movies. 

Digital Projection TV*
Sales to Dealers

                Unit Sales          Dollar Sales        Average
               (Thousands)           (Millions)        Unit Price

2001             1,045                  $1,948              $1,864

2002             1,804                  $2,395              $1,627

2003             2,444                  $3,678              $1,505

2004             3,510                  $5,543              $1,579

2005             3,119                  $4,548              $1,458

2006p           2,710                  $3,962              $1,462

*Includes CRT, LCD, DLP and LCOS based rear projection televisions.
Source: CEA Market Research

Another process frequently used in the production of DVD titles is anamorphic squeezing. This technique gets 33 percent more vertical information in a widescreen picture. Anamorphic processing compresses the wide picture shape of a film frame into a 4:3 image area.

On 16:9 aspect ratio displays, the horizontal is stretched to the full width of the set with minimal distortion. When anamorphic images are presented on 4:3 sets, the characters appear tall and thin, so the image must be corrected by squeezing the vertical.

Digital Direct-View CRT Television to Explode in 2006
Due to the the FCC’s digital tuner mandate, the CEA forecasts factory sales of digital direct-view CRT receivers exploding to 3.2 million units in 2006. This will make the digital direct-view CRT category the sales volume leader for the first time. Average pricing is expected to decline from $600 to $473. This follows 2005, when 1.2 million units were sold, according to CEA market research.Projection TVs Lose Ground to Flat-Panel TVs

Since the launch of digital television broadcasting, projection TVs have stood as the leading display format among overall digital television sales, and enjoyed annual sales increases. But in 2005, digital rear projection TV sales began to decline for the first time. DTV sales dipped 11 percent in 2005 to 3.1 million units from 3.5 million units in 2004, according to CEA estimates. The trend will continue in 2006, CEA predicts, with factory sales dropping 13 percent to 2,710 units. The sudden downturn can be attributed to falling prices and rising demand for flat-panel TVs, which take up less room and offer better viewing angles than rear projection products. At the same time, more digital direct-view CRT TVs have arrived offering somewhat smaller screens but lower prices and brighter pictures, generating a larger mass market following.

Since the launch of DTV, projection sets have been offered in two basic configurations. The most popular are one-piece, self-contained rear projection systems with screen sizes ranging from 40- inches to 80-inches.

Alternative, two-piece projection systems employ either front- or rear-firing projectors that can sit on small tables or are permanently mounted on ceilings to cast projected video images on separate video screens. These systems produce pictures of 100-inches and larger.

Many rear-projection models come complete with built-in surround sound, multi-channel audio systems that create a home theater experience in one unit. Because rear-projection sets can be too large for some homes, manufacturers are producing slimmer cabinets. The size of some 40-inch models has shrunk so much that they are sold as table models.

The first TV projectors -- front and rear -- used a combination of three cathode ray tubes (CRTs) projecting images in the red, green and blue color spectrums to produce large full-color pictures when the three separate images converge on the screen. Various alternatives now further reduce cabinet size, eliminate problems related to the misalignment of the CRTs and produce brighter and sharper images.

More recently microdisplay rear projection HDTV sets and monitors – those based on LCD, DLP or LCoS integrated circuit technology (see below) – were introduced. These account for a growing percentage of rear projection TV sales today. The average retail price for digital rear projection TV dipped to $1,458 in 2005 from $1,579 in 2004.  Pricing is projected to decline again in 2006 to $1,462.

LCD Projection
Projectors based on LCD panels use tiny LCD chips as light valves. These models, now found in front- and rear-screen configurations, are generally much smaller than their CRT counterparts. Some front-firing models are so small that they are used as portable TVs and can be carried in a briefcase.

Traditionally, LCD devices have been built as a sandwich between two glass plates, with liquid crystal in between. Very high-resolution displays are generally built using thin film transistor (TFT) technology.

Although larger LCD panels can be used as direct-view displays, the technology also can be adapted to produce larger screen sizes in front and rear projection systems. Most employ three small LCD panels carrying images in the red, green and blue spectrums. The projected image of each panel converges into a single full-color picture.

LCD projectors use high-brightness bulbs and can be adjusted to throw a three-foot to ten-foot display on movie screens. Image resolution can be affected by limitations in the number of pixels that can fit on an LCD panel, but recent technological advances in the shape and configuration of pixels have improved resolution and brightness. Additionally, new breakthroughs in reflective panels improve resolution, contrast and color purity.

DLP Projection
Another alternative is the two-piece system using digital micro mirror device (DMD), light valve technology. These displays, called DLP projectors, are based on DMD semiconductors with surfaces covered with thousands of tiny-hinged mirrors that move many times a second to produce brighter and sharper pictures than most CRT- and LCD-based systems. The reflected image from the DLP is projected through a revolving color wheel of red, green and blue filters or using new scrolling color techniques to produce a full color image. LCoS Projection

Liquid Crystal on Silicon (LCoS) was developed as an alternative way to use liquid crystals in high-resolution imaging. LCoS devices use only one glass substrate, and employ a silicon surface for the back of the display. Silicon processing technology provides an efficient means of patterning several million pixels and their related drivers on a one-inch square section of crystal. Pixels typically are coated with a reflective aluminum layer and a polyamide alignment layer.

Three-chip LCoS systems produce the red, green and blue color spectrums that combine to produce a full-color image on the screen.

Single-chip LCoS systems project the image through a color wheel or use scrolling bands of red, green and blue produced by a spinning prism array to produce the full color image.

Front Projectors Pick up Pace
A growing segment of the high-end home theater video display market is coming from front projectors. Once viewed strictly as options for the ultra elite, the category has been shifting more to mainstream audio/video distribution channels as unit sizes and prices shrink.

According to the market research firm, Quixel, the consumer home theater front projector market sold 314,449 units, up 57.5 percent over the previous year. Quixel forecasts the home theater front projector market to climb 44 percent to 454,850 units in 2006.

New models are fully optimized for the consumer market, with most capable of supporting a native widescreen aspect ratio, 720p and 1080i HDTV resolution compatibility.

DLP projectors represent over half of all units. Quixel market research reported that DLP front projectors dominated the consumer front projector field with a 69.74 percent market share in 2004, and will continue to pace the market in 2005. CRT projectors, once the dominant segment, are now a minor segment of the business and dropping steadily, due in part to their bulk, high prices and set-up difficulty.

Front Projectors Take on New Forms in 2006
In recent months, the front projector category has gotten a facelift with the introduction of various new designs from combo products to models with ultra-compact cabinets.

A number of products slated for market entry in the later part of 2006 include combo DVD player/front projectors. These models, which are offered at relatively inexpensive price points compared to other front projectors, typically are targeted at families. While compact front projectors are nothing new to the category, several manufacturers showed units so small they could fit in a pocket. These tiny projectors, which are intended primarily for business applications that require portability, can weigh as little as 15 ounces and will sell for less than $600.

Another new development in front projector design includes lighting produced by three light emitting diodes (LEDs) instead of typical bulbs. LEDs use less electricity, produce less heat and have longer life spans than conventional bulbs.

Flat-Panel TV Sales Accelerate

Some of the most popular video display technologies employ large, thin flat panels that deliver a movie theater experience while taking up less room in a house. Once relegated to commercial and institutional applications, declining prices have enabled these flat-panel displays to become virtual mainstream products.

The flat-panel TV segment is comprised of plasma display panels and LCD TV screens. Due to rapidly declining prices, it is expected to be one of the DTV category's biggest growth segments in 2006.

As more retail stores added flat-panel TV departments and the ranks of flat-panel manufacturers grew in 2005, industry sales swelled. U.S. factory sales of plasma TVs grew 88 percent from 870,000 to 1.6 million units in 2005 and are expected to climb 77 percent to 2.9 million units in 2006, according to CEA estimates. Digital LCD TV sales during 2006 are forecast to rise 74 percent to 7.1 million units.

Consumers are fascinated primarily by the form factor of flat-panel displays. These often large and thin (measuring just four-inches deep) panels can be hung on walls like framed pictures, and eliminate the large bulky cabinets of big-screen direct-view or rear projection TV products.


Plasma Displays

Plasma sets consist of sealed glass envelopes filled with rows of thousands of small individually charged chambers. Each chamber holds a mixture of neon and xenon gases that discharge to activate brightly glowing phosphors. The result is a sharp picture that can be viewed anywhere within a 160-degree angle, vertically and horizontally.

Plasma TV*
Sales to Dealers

                Unit Sales       Dollar Sales        Average
               (Thousands)        (Millions)         Unit Price

2001               16                   $116                $7,250

2002               106                  $515                $4,858

2003               342                 $1,590              $4,649

2004               870                 $2,347              $2,698

2005             1,959               $4,012              $2,048

2006p           2,908               $5,302              $1,823

*Includes both analog and digital flat panel LCD televisions.
Source: CEA Market Research

Because production costs are high, the first plasma TVs to reach the consumer market were priced at more than $12,000 for a 42-inch screen size with EDTV-level resolution. Market research firm iSuppli estimates that the price for a 42-inch EDTV plasma display will fall to $1,100 by early 2006, while starting prices for a 42-inch HDTV version will dip below $2,000 in 2006. In the early weeks of 2006, a new HD plasma set was promoted at $1,499 by one supplier of Chinese-manufacturered products.

Plasma screen sizes vary from 32-inches to more than 100-inches, with the bulk of sales in the 42-inch screen size. Virtually all plasma panels are manufactured with a widescreen aspect ratio.

LCD TVs
In 1971, the first LCDs were demonstrated publicly and accepted quickly. LCDs use organic substances that reflect light when voltage is applied. The LCD consists of a liquid suspended between two glass or plastic panels. Crystals in this suspended substance are aligned parallel naturally with one another, allowing light to pass through the panel. When electric current is applied, the crystals change orientation and block light instead of allowing it pass through, turning the crystal region dark. Initially, LCDs were monochromatic and were used mostly in calculators and wrist watches, but continued development during the past 30 years produced highly efficient, full-color displays in ever increasing screen sizes.

Today's LCD technology used in direct-view monitors for televisions and PC monitors usually are identified as active matrix, TFT or dual-scan displays. LCD TVs slated for market in 2006 are offered in screen sizes from 15-inches to 82-inches. Resolution levels vary from entry models with 640x480 pixels (EDTV) to 1920x1080 pixels (HDTV). Because LCD, like plasma panels, are digital fixed-pixel devices, imaging lines are displayed progressively on the screen, and are not broken up into two interlaced halves, as is typical of conventional CRT displays. This reduces picture artifacts, particularly in static graphic material.

LCD Developments
Although most direct-view LCDs to date have relied on cold-cathode fluorescent lamps as backlighting to illuminate images, a number of manufacturers introduced LCD TVs in 2005 that used red, green, and blue light emitting diodes (LEDs) as backlights. Typically, these designs use seven strings of LEDs, each containing 26 green, 26 red and 13 blue diodes, or 455 in all. The technology produces very pure white levels and extremely vibrant colors.

LCD TV*
Sales to Dealers

                Unit Sales       Dollar Sales        Average
               (Thousands)        (Millions)         Unit Price

2001               845                  $101                 $119

2002               935                  $246                 $263

2003             1,253                 $664                 $530

2004             1,842               $1,579                $857

2005             4,026               $3,295                $818

2006p           7,116               $5,831                $819

*Includes both analog and digital flat panel LCD televisions.
Source CEA Market Research

Another new LCD development in 2005 called “ClearLCD technology,” uses an array of 10 horizontal cold-cathode fluorescent lamps that are turned on and off sequentially from the top of the screen to the bottom at the same rate as video frames are displayed (60 Hz). The delivered benefit is an increased viewing angle and smoother fast motion reproduction.

LCD and Plasma Collide
Continuing trends in flat-panel TV manufacturing to make plasma panels smaller than 42-inches – the smallest plasma display screen size in 2006 will be 32 inches and the largest will surpass 100 inches – and LCD panels larger than 30-inches – newly proposed screen sizes exceed 80 inches – are moving the two technologies toward an inevitable collision.

As the screen sizes overlap, consumers will purchase a TV panel that presents the best picture for the money, manufacturers and analysts say. Today, plasma panels continue to have a significant cost advantage over very large screen LCD TVs, but LCD technology produces a picture with exceptional color saturation and requires less power to operate. Meanwhile, prices rapidly are declining for both technologies, and plasma manufacturers have developed technologies to extend the lifespan of their panels many years under normal use.

New SED Flat-Panel Technology Slated for 2006 Launch
Two companies – Toshiba and Canon – jointly have been developing for the last decade a new flat-panel technology that promises to deliver the superior picture quality benefits of traditional CRT devices with the flat-panel form factor of plasma and LCD TVs. The new panels, which are called Surface-conduction Electron-Emitter Displays (SEDs), are expected to reach market in 2006 with a widescreen panel measuring 55-inches. SED is said to handle fast images without producing jagged edges, while consuming one-third the power needed by plasma.

SED is formed by two glass plates with a vacuum in between them. One plate contains electron emitters and pixels similar in number to those of a CRT electron gun, and the other plate is coated with a fluorescent substance. The key to the electron emitters at the heart of the SED is an extremely narrow slit (several nanometers wide) made from ultrafine-particle film between two electric poles. Electrons are emitted from one side of the slit when 16 to 18 volts of electricity are applied. Some of these electrons are scattered at the other side of the slit and accelerated by the voltage (approximately 10kV) applied between the glass plates. They collide with the fluorescent-coated glass plate to emit light.

SED has a wide viewing angle, similar to CRT. Larger screens can be manufactured by increasing the number of electron emitters to match the required number of pixels. SEDs do not need electronic-beam deflection, like CRT displays do. Wall-mounted large-screen TV displays can be made only a few centimeters thick. SED products are expected have a 1-millisecond response time and an 8,600:1 contrast ratio, both superior to existing flat-panel technologies. Production quantities of SED panels are expected to be limited in the first year, causing introductory prices to be significantly higher than for comparably sized plasma and LCD panels.

1080p Displays Catching On
Although displays capable of displaying as high as 1920x1080 progressive resolution have been on the market for several years, 2006 is expected to be a year of strong growth for the category. Thus far, the ultra-high resolution capability has been added to microdisplay rear projection TVs (MD RPTVs) and large-screen LCD and, most-recently, plasma flat-panel TVs.

In North America, the 1,080p share of MD RPTVs rose from eight percent in the third quarter of 2005 to 18 percent in the fourth quarter. Approximately 800,000 microdisplay rear projection sets were sold in North America in 2005, up 54 percent from 2004, DisplaySearch said. The increased popularity of 1080p products was “due to the plethora of broadcasted 1,080i content which looks better on a 1,080p than a 720p set,” DisplaySearch explained. In addition, “early adopters were preparing for the availability of 1,080p broadcasted and packaged content.”

Primarily for cost considerations and the virtual absence of 1080p source material, many 1080p sets sold to date lack enough internal processing power to handle incoming signals at a native 1080p/60 frames per second rate. Such signals first must be converted to either 1080i or 720p, and are later up converted to 1080p by the set.

However, in 2006, more manufacturers recognizing the imminent arrival of 1080p-capable source devices, such as Blu-ray Disc players, will be introducing new 1080p displays capable of accepting native 1080p input material.

Home Theater Front Projector
Unit Sales to Consumers

Year

Unit Sales

2001

18,626

2002

30,007

2003

65,634

2004

199,574

2005

309,872

2006 (p)

452,675

2007 (p)

611,321

Source: Quixel Research