HDTV sales skyrocket

Dec. 22, 2006
By JOSEPH M. DELEON News-Post Staff
jdeleon@fredericknewspost.com
  

FREDERICK — With many consumers trading in older, smaller TVs for larger, high-definition sets, the HDTV business is one of the things driving the 2006 holiday shopping season.

HDTV sets deliver better contrast, more nuanced colors and increased resolution compared to standard TV. Regular TV sets show 525 lines of resolution, while HDTV displays have at least 1,125 lines of resolution. The better color and increase in detail give HDTV images sharp, crisp edges.

Experts agree decreasing prices and more high-definition programming will continue to boost HDTV sales.

Last year, sales of HDTV sets in November and December topped $2.2 billion with more than 1.4 millions sets sold in the United States, according to market research firm NPD Group. That's an increase of 39 percent from about $858 million in sales during the same time in 2004.

Matt Swanston, director of business analysis for Consumer Electronics Association in Arlington, Va., said most HDTVs are competitively priced, which means overpriced units are not selling well.

"Affordability is certainly boosting HDTV sales because the price on these is an unbelievably good value," he said. "The technology that has allowed them to get flatter and thinner is a big driver. You can get a good sized set that hangs on the wall so it's no longer a piece of furniture."

Being able to see more shows, especially sports, in HD is also encouraging more people to buy the sets, Mr. Swanston said. The increased detail helps viewers enjoy an event as if they were actually there.

"People are more likely to see sports they wouldn't ordinarily watch if it wasn't available on HDTV," he said. "Being able to see the sweat on an athlete's brow, or the detail of high-action sports, like seeing a hockey puck — that really does add a lot to the experience."

Gary Yacoubian, president of Gaitherburg-based electronics retailer Myer Emco Inc., said HDTVs used to be quirky three years ago when little programming was available.

"Connectivity was weird back in the day and some things worked as you might expect while others didn't. Now they're sturdy, reliable and affordable," he said. "We see a whole slew of folks coming into the store to buy HDTVs, not just the tech geeks."

Cable and satellite providers have been offering more HD channels over the past two years. Even broadcast networks are transmitting HD programs, but Mr. Yacoubian said many consumers are still confused about programming. Viewers often believe that any "digital" form of media is HD, but that's not the case.

"People don't realize DVD as it has existed is not HD, or how much of network TV is in HD, or that digital cable doesn't mean HD — you need an HD cable box," he said. "I think, frankly, there is still lots of confusion and misinformation, sadly, some of it comes from retailers."

Ready, set, buy

First time buyers need to know where the HD signal will come from before buying an HDTV, Mr. Swanston said. If it's from broadcast channels, all the buyer needs is the HDTV and an antenna.

"It you get satellite or cable, find out from your provider first how you'll get the signal into the house," he said. "It all goes back to inputs, make sure the content provider gives you the right connections."

Otherwise, a HD converter may be needed, which could affect the quality.

Buyers should also watch the HDTV in the store and consider in what conditions the set will be viewed at home.

"Watch it in action. Consider if it's in a bright room or a dim one and watch it at different angles" Mr. Swanston said. "Most of all remember to have fun. A lot of people, even those who are not in the market for an HDTV, know what they want. It's just fun to watch."

Mr. Yacoubian recommends buyers decide how big an HDTV to buy based on how far they will sit from it.

"We recommend the viewing distance should be twice to three times the size of the TV," he said. "The bigger the screen, the more convincing, the more emotional effect it has on the viewer."

Knowing the size can help determine what kind of HDTV to get based on affordability.

Buyers should get a flat-panel LCD for HDTVs about 50 inches, Mr. Yacoubian said. Microdisplay rear projection HDTVs are the best buy for sets smaller than 50 inches.

"The really exciting stuff going right now is a 42-inch plasma and a 40-inch LCD because they are really competitively priced," Mr. Yacoubian said. "They look absolutely amazing and they're really affordable."

While plasma technology has a slight edge in viewing quality over LCDs, he said, plasma sets tend to suffer from burn-in, a spot on the TV screen that remains even when a new image is displayed often caused by displaying an object, such as a logo, for too long.

Prices will continue to fall, but Mr. Yacoubian believes next year's won't decrease as dramatically as they did this year.

"You won't be kicking yourself next year when you see the prices," he said. "Some folks might have felt burned this year, but we're not predicting the same kind of price drop next year."