News Analysis
5 Reasons Why HDTV Will Boom
The High-Definition industry seems poised for a big holiday season.
By Phillip Swann

Washington, D.C. (September 7, 2006) -- High-Definition TVs are now in roughly 20 million U.S. homes but some skeptics still wonder if it will ever become a household staple.

Today, I will present five reasons why high-def sales might boom in the next six months. Tomorrow, I will offer five reasons why HDTV may still struggle to reach a bigger audience.

So, here are...

5 Reasons Why HDTV Sales Will Boom:

1. Lower Prices
The newswires have been burning with stories recently saying LCD and Plasma prices should drop from 20 to 30 percent next year. Consequently, you might see some 37-inch or 42-inch flat-screen HDTVs for under $1,000 in 2007. And if that happens, sales will soar. Many consumers are waiting for flat-screen TVs to hit that magic $1,000 mark.

2. Popular Shows Now In HD
In recent days, NBC has announced that the Today Show will air in HD (Sept. 13 debut); ABC has launched a high-def version of The View; and various networks say  Star Trek, Jeopardy and Wheel of Fortune will be offered in HD in syndication (although many local stations are not ready for HD broadcasts). These shows are highly popular and their fans will now be more interested in buying a high-def set.

3. Cable & Satellite Expanding HD Lineups
EchoStar, the nation's second largest satcaster, now has 30 national HD channels. Several cable operators are shedding some analog channels to make room for more high-def networks. And DIRECTV is aggressively rolling local HD channels across the country. While the HD lineups are still too thin for many viewers, the increase in channels should help spread more positive word of mouth about the high-def experience.

4. More Advertising
TV makers are dramatically increasing advertising campaigns for their high-def sets. From Sony to Hitachi, companies are spending scores of millions of dollars to generate more awareness of their brands and products. This can't help but get more people in the stores.

5. The Digital TV Transition
Congress this year passed a law stating that all analog TV signals will switch to digital in February 2009. Finally, the Digital TV transition is set in stone. (The previous  transition law had so many qualifiers that it appeared the switch wouldn't occur for a decade.) While the big switch is still more than two years away, analog TV owners will  start to think more seriously about upgrading their sets, particularly during the upcoming holiday season.

Tune in tomorrow for part two:
5 Reasons Why HDTV Will Not Boom

Click TVPredictions.com to see the rest of today's Swanni Sez.

© TVPredictions.com

---

Phillip Swann is president and publisher of TVPredictions.com. He has been quoted in dozens of publications and broadcast outlets, including CNN, Fox News, Inside Edition, The New York Times, The Washington Post, The Chicago Tribune, The Financial Times, The Associated Press and The Hollywood Reporter. He can be reached at swann@tvpredictions.com or at 703-505-3064.

And click TVPredictions.com to read more news and features on TV technology.