Market Drivers

Several factors are contributing to the growing popularity of HDTV:

• Significant penetration of HD-enabled TVs - primarily LCD and plasma
• High-definition DVDs
• Increasing production of HD content
• Availability of HDTV receivers
• High-profile sports events

This year the market will expand further due to:

• Growing availability and affordability of HD-ready TVs
• Leading pay-TV providers reaching critical audience sizes in main markets
• Proliferation of high-definition TV channels and DVDs
• Events such as the 2010 World Cup

Sports events and Christmas generate major sales peaks for HD equipment

Sport is the main draw for HD channels after movies. Key events include the winter and summer Olympic games, and the world and European soccer cups. During the 2002 World Cup, HDTV sales increased by 12.7%, with over 45,000 units sold between May and July.

Christmas generates a sales peak because consumers spend more on new equipment and resellers offer more rebates.

Projected Growth for HDTV in Europe