HDTV set sales in US to Reach 180 million by 2010 - Kagan Research

More than 21 million HDTV sets had been sold to consumers at year-end 2005, and at year-end 2006 penetration of HD sets into TVHHs is expected to reach nearly 30%, according to a study from Kagan Research. The study  forecasts that by 2010 nearly 180 million HDTV sets will have been sold to U.S consumers, penetrating more than 81% of TVHHs.

HD cable networks is estimated to have generated $182 million revenue in 2005 and is expected to grow to more than $1.9 billion by 2010.

Kagan forecasts the 2006 total cable residential revenue to grow 9.6% to $68.2 billion at an average ARPU of $87.04. The total cable residential revenue to is expected to reach $119.8 billion by 2015, of which 41% will be delivered by basic cable, vs. 47% in 2006. 

The two major DBS operators, DIRECTV & EchoStar, have added subscribers at an impressive pace and Kagan estimates that at year-end 2006 DBS subscribers will total 29.4 million, a 30.3% of the multichannel universe, and forecasts growth of 2.6% per year, reaching 34.2 million in 2011.

Other key estimates include:
• The number of HD subscribers across DBS and cable platforms at year-end 2005 totaled 5.5 million. Cable operators had secured nearly 70% of those.
• At $0.84/sub, ESPN HD sports the largest license fee among all HD networks.

ECONOMICS OF HIGH-DEFINITION CABLE NETWORKS provides an in-depth look at the financial picture of 25 HD networks in the U.S. with metrics ranging from the number of network subscribers to the average license fee per sub to SG&A and programming expenses.  The report also includes 10-year forecasts for digital and HD television sets, HD subscribers for both cable and satellite operators and a technical section that addresses bandwidth capacity issues. For more information on ECONOMICS OF HIGH-DEFINITION CABLE NETWORKS go to www.kagan.com/HDCN.

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