DTV Sales Poised For 2005 Explosion

• 2006 DTV unit sales expected to top 18.7 million.
• 32.5 million DTV products sold since 1998.
• Average DTV price to drop below $1,300 in 2006.

Now that the nation has “a date certain” for the end of analog broadcasting, CEA forecasts that sales of digital television sets will outsell analog models by more than 89 percent in 2006. In 2005, sales topped 12 million units, bringing total sales of DTV products since the 1998 introduction of the first products to more than 32.5 million units. CEA is forecasting sales of 18 million DTV products in 2006. Some 87 percent of DTV sales are expected to be high-definition products.

More consum­ers than ever before expect their next TV purchase will be an HDTV, according to CEA surveys. Total DTV sales for 2005 reached more than 12 million units and $17 billion in revenue, an increase of 60 percent compared to year-end 2004.

Digital Set-top Box Sales
According to CEA Market Research, sales of digital set-top tuners – including satellite receivers, DTV receivers and digital video recorders – required for DTV monitors to receive over-the-air terrestrial digital signals are forecast to rise 24 percent in 2006 to 22.5 million units. The organization estimated sales of 18.1 million set-top tuning devices in 2005. 

Total Set-Top Boxes* Sales to Dealers
Unit Sales       Dollar Sales        Average                (Thousands)        (Millions)         Unit Price
2001             7,195               $1,312                $423
2002             7,185               $1,223                $408
2003            11,263              $1,757                $356
2004            17,577              $2,355                $134
2005            18,169              $2,387                $131
2006p           22,529              $2,782                $123
*Includes satellite receiver, DTV receivers and VR/PVRs Source: CEA Market Research

HDTV Dominance
When it comes time to purchase a digital television, the majority of consumers have opted to purchase a display capable of full high-definition resolution. But that rate is expected to slip some in 2005 as a Federal Communications Commission’s (FCC) digital tuner mandate increases the volume of digital televisions in smaller screens, offering squarish 4:3 aspect ratios. These sets typically are capable of enhanced definition television (EDTV) resolution of 480p or standard definition television (SDTV) resolution of 480i. The CEA said more than 85 percent of DTV displays sold in 2005 were capable of displaying a picture in HDTV resolution. Remaining DTV models produced enhanced or standard definition (EDTV/SDTV) resolution.

Lower Prices Propel 2006 Sales
Since the DTV launch, the average price for a DTV has fallen more than 50 percent. More consumers now see the value in their DTV purchases. This year, the average selling price of a DTV is expected to drop to $1,250 from $1,410 in 2005. By comparison, the average DTV price in 1998 was $3,147.