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One third of US homes will have ultra-high definition TVs by 2020
UHD TVs are reported to be catching on in the US. u00e2u20acu2022 AFP pic

NEW YORK, May 14 ― UHD TV may still be a novelty and an expensive one at that ― most TVs cost upwards of US$5000 (RM16, 123) ― but uptake is growing and at a faster rate than the technology it's looking to replace, the flat screen HD TV set.

In 2012, just 72,000 UHD TVs shipped globally, but just one year later that number jumped to 1.7 million. And while the majority of TVs were snapped up by Chinese consumers ―  over 80 per cent of all sets shipped were shipped to or within China ―  the US will soon overtake China for demand and, by 2020, Europeans will be snapping up the sets in large numbers too.

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According to the Strategy Analytics report, “Ultra High-Definition TV Displays: Global Market Forecast 2012-2020,” by 2020, 41 per cent of all flat panel TV shipments will be UHD variety. By the end of the decade, 32 per cent of US homes will have a UHD TV, as will 22 per cent of Western European homes ― i.e., the UK, France, Germany, Italy and Spain ― while penetration in the Asia Pacific region will have passed 18 per cent.

A number of other studies, surveys and reports into the market in recent months have highlighted that interest in the televisions is gaining quickly but that at the moment, in Europe in particular, consumers are wary of the cost of upgrading. While Sony may offer a very good entry-level model for ‘just’ US$5000, most TV sets boasting the technology from the world’s leading brands ― Samsung, LG, Panasonic and Sony ― run into the tens of thousands and beyond.

And while one or two budget brands have announced sub-US$1000 UHD TV sets for 2014, the consensus seems to be that until one of the trusted TV brands offers an entry-level model, consumers will remain wary. Strategy Analytics’ report predicts that this price drop is imminent and the sub-US$2000 branded UHD TV will be a reality before the end of 2014.

David Watkins, Service Director, Connected Home Devices commented: Demand for UHD TVs is exceeding previous expectations and current adoption rates are similar to those of 1080p [HD]TVs back in the mid-2000s when sales penetration hit around 5 per cent of total flat panel demand by the end of year three of 1080p sales. By the end of the decade, UHD will become standard in screen sizes larger than 40-inches although sub 40-inch sets will remain mostly within the realm of 1080p.”

As well as price, the other obstacle UHD TVs have to overcome is content. There is currently very little native content available for the sets and what is already there either has to be streamed or downloaded or bought preloaded onto media players. However, Strategy Analytics thinks that manufacturers will be able to draw consumers' attention to the fact that these sets also improve on the quality of existing full high definition content.

“Despite the limited availability of UHD content, early adopters of UHD TVs are being attracted by vendor promises of improved picture quality. TV manufacturers are working to perfect the up scaling engines of their sets and will look to put a strong marketing focus on the merits of up converting 1080p to UHD content until the dam breaks on UHD content and broadcast services begin,” explains Eric Smith, Analyst, Connected Home Devices. ― AFP-Relaxnews

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