Wednesday, December 01, 2004

More digital TVs seen under trees this year

Can you imagine that in a few years, you are not able to watch TV if you don’t have a digital TV set? It's not a joke. The digital TV or DTV sets came out in the late 90s, but they were too pricey at that time, one digital TV would cost you thousands dollars. Therefore, in the electronic market, the price was high, the demand was low. But in the past several years, the price of DTV was keeping falling. Today, according to the nonprofit Consumers Union advocacy group’s Consumer Reports; the price of basic DTV sets start at price $500, and the price of the HDTV (high-definition Television Sets), which are the most sophisticated form of DTV sets with the best quality picture and sound is as much as $1500. People who want to by a DTV or a HDTV now can afford those prices. As the price declining, the demand increases. On the other hand, which the demand of DTV increases, the supply of the programs broadcast in digitally compatible "high definition" would increase to satisfy the demand. Today, you can see Many major sporting events on HDTV, as well as regularly scheduled hit shows such as "CSI: Crime Scene Investigation," "Desperate Housewives," "Without a Trace," "ER," "Everybody Loves Raymond," "Lost," "The Tonight Show With Jay Leno" and "The Young and the Restless."

In the report, it also says that the Consumer Association, a trade group for manufacturers and retailers had an optimal prediction. They think that there would be 3 million DTV to be sold in the last three months of this year, which in the total of 7 million predictive sold for 2004. Therefore, homes of the United States will have 12.1 million HDTV at the end of this year, comparing 7 million for 2003, according to the Yankee Group, a Boston technology research outfit.

That optimal prediction makes sense because the sales of electronics kept tech stocks slightly raised during the thanksgiving weekend, compared the others were declining. Also, The Federal Communications Commission urged TV broadcasters to switch from airing programming on the traditional analog spectrum to a digital spectrum, which offers higher picture and sound quality as well as a government-led consumer education campaign. All of those will help the sell of DTV.

The demand of the DTV set increases fast but not fast enough. As I mentioned at the beginning, why you are not able to watch TV unless you have a DTV? Because the transition from analog to DTV is slated to end by 2007; isn’t it a concern that it is likely to extend the date? The DTV definitely have better quality of picture and sounds; I have seen the DTV in my friend’s home in China, and I like it. But I believe not everyone in this country can afford this by that time. Well, unless the prices of DTV keep falling until what everyone can afford. It is not a dream though, the price may keep falling, and people’s income will increase in the long run; eventually everyone can afford this new technology just like the transition from black and white TV to color TV, but maybe not in this short time.

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