SNL Kagan Expects HDTV Sales to Rebound in Late 2009 and Continue Strong into 2010

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Despite revived sales, slashed retail prices and consumer preference for budget-priced HDTV sets could reduce revenues.

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As average HDTV set prices continue to fall to the $600-700 range by 2010-2011, we should see mass adoption begin to take hold, with over 80-90% penetration of TV households

According to updated projections from SNL Kagan, the market for high-definition televisions (HDTVs) is expected to pick-up in the second half of 2009 and maintain momentum into 2010. SNL Kagan projects 2009 HDTV sales will reach 29.0 million units, up from an estimated 26.2 million in 2008, as consumers react to lower average retail prices for HDTV sets and to pent-up demand.

However, consumer preference for budget, midsize displays could reduce profit margins for both manufacturers and retailers. SNL Kagan estimates 2009 HDTV retail revenues will reach $25.5 billion, down from the 2008 total of $28.4 billion.

SNL Kagan analysis shows the percentage of HDTV households growing to 71% of total TV households - roughly 82.3 million homes - in 2009, up from 16% in 2005, as more primary analog or standard digital sets are replaced in the home.

"As average HDTV set prices continue to fall to the $600-700 range by 2010-2011, we should see mass adoption begin to take hold, with over 80-90% penetration of TV households," said SNL Kagan analyst Justin Nielson. "Looking past 2012, we project almost all TV households will have at least one HDTV. However, retail market revenues will flatten at $24 billion due to market saturation as all displays sold at the retail level will be high definition by 2017 and the average retail price drops to about $500."

These projections were published in SNL Kagan's Broadcast Investor feature and are available via the SNL Kagan Unlimited Information Service. For more information on SNL Kagan Unlimited, contact Sales at 866.296.3743; SNLKaganSales(at)snl(dot)com.

About SNL Kagan
SNL Kagan, a division of SNL Financial LC, is a comprehensive resource for financial intelligence in the media and communications sector, including the broadcasting, cable, entertainment, motion picture, telecom, wireless, satellite, publishing and new media industries. The SNL Kagan suite of products integrates breaking news, comprehensive data and expert analysis into an electronic database available online and updated around the clock. For more information, visit .

About Kagan Media Appraisals
Kagan Media Appraisals, the consulting arm of SNL Kagan, offers custom studies, white papers, briefings, business plans, research reports and appraisals from SNL Kagan's team of expert analysts. KMA is recognized industry-wide for actionable advisories, expert opinions, best practices, regulatory assessments and market data. Contact KaganConsulting(at)snl(dot)com or 831.624.1536 for more information.

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