DTV Sales Poised For 2005 Explosion
• 2005 DTV unit sales expected to top 20 million.
• Digital direct-view CRT sets to grow more than 800 percent in 2005.
• 16.1 million DTV products were in U.S. households through 2004.
• Average DTV price to drop below $1,000 in 2005.

This year is expected to represent a major breakout in the acceptance of DTV products, with CEA forecasting sales of 20.2 million units to dealers, representing more than a 180 percent increase over 2004’s record 7.3 million-unit year, according to the association’s 2005 sales and forecasts report issued in December 2004.

The 2004 DTV shipments, meanwhile, achieved a 75 percent growth spike over 2003 sales, CEA said. The 2004 total included 927,000 units shipped in December 2004, a 45 percent increase from December 2003, according to CEA. Flat-panel displays accounted for 38 percent of 2004 DTV shipments. More than 16.1 million DTV products accounting for $25 billion in total revenue were shipped since 1998 – when the first products reached retail shelves – through 2004, according to CEA Market Research.

Digital Set-top Box Sales:
According to CEA Market Research, sales of digital set-top tuners required for DTV monitors to receive over-the-air terrestrial digital signals are forecast to explode by more than 230 percent in 2005, with forecasts of 1.7 million unit sales by the end of the year. The industry sold 505,000 digital set-top tuners in 2004, CEA said.

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 FCC digital tuner mandate increases the volume of digital televisions in smaller screens, offering squarish 4:3 aspect ratios. These sets are typically capable of enhanced definition television (EDTV) resolution of 480p or standard definition television (SDTV) resolution of 480i. CEA said 85 percent of DTV displays sold in 2004 were capable of displaying a picture in HDTV resolution, while the remaining 15 percent were enhanced definition televisions (EDTV). With escalating volumes of smaller screen DTVs in the market this year, the percentage of HDTV sales is projected to shrink slightly to 64 percent, according to CEA forecasts.