HDTV Adoption Jumps 25 Percent Over 2007 Holiday Season

LOS ANGELES, April 24: A new study from research firm Frank N. Magid Associates reveals that 25 percent of U.S. households—28 million—now have at least one HDTV set, up from a penetration of 20 percent in September 2007, with 5.5 million households purchasing an HDTV set for the first time during the 2007-2008 holiday and Super Bowl season this year.

The study also found that 3 million homes added a second HDTV during this same time frame, bringing multiple HDTV set homes up to nearly 10 million. Due to falling prices and the upcoming digital transition, a larger percentage of adults 21 to 34 purchased HDTVs this holiday season. Among those who purchased their HDTV set in the past year, 18 percent say they did so to connect it to a high-definition video-game console like Xbox 360 or PlayStation 3.

Among those who reside in a household with at least one HDTV set, the number who have taken steps to arrange for HD programming reception hold steady compared to other recent studies at 70 percent. Among the 30 percent of HDTV set owners who have not made these arrangements, many cite costs and a limited number of channels available in high definition. Satellite customers make up half of this group, and most of them say they are not prepared to purchase the new equipment necessary to add this service. Only 3 percent of homes own an HDTV set that is receiving HD programming from their local stations via an over-the-air antenna.

According to the study, in the next year, 3 in 10 households plan to purchase a new TV, with nearly all of them indicating that if they make this purchase, the new television will be an HDTV set. Much of the demand seen this year is driven by both the continuing decline in HD set prices, and the belief among some consumers that the digital television transition slated for February 2009 requires that consumers purchase a set capable of displaying high definition. Findings also show that 24 percent of those who do not currently own an HDTV set believe it is important to be able to watch the 2008 Summer Olympic Games in high definition, another factor that could lead to higher-than-normal second quarter TV sales.

While few respondents said the Super Bowl drove their purchase intent, 25 percent of U.S. households watched some portion of the match-up between the New York Giants and the New England Patriots in high definition, either in their own home or in the home of a friend or a family member, representing a third of all Super Bowl viewers. The study notes that current HD owners will also drive demand for HD sets, with nearly 4 in 10 current owners of HDTV sets planning to purchase another HDTV set in the next 12 months.

The study was conducted online among 1,235 consumers nationally representative of the U.S. online population, aged 21 and over.

"Consumers who become accustomed to the sleek and contemporary appearance of their first HD set are now looking to bring that benefit into other rooms in their home," said Maryann Baldwin, the VP of Magid Media Futures. "However owning an HDTV set and actually viewing HD are still two very different pursuits for many."

—By Irene Lew