4K TV sales to grow faster than HD did1 April 2014
Research by Parks Associates predicts that 4K TV sets will follow a similar, but faster, growth pattern to HDTV sets (which have now reached 82% of US broadband households after 15 years on the market).
The research ‘4K Today: Bringing Ultra HD to Market’ predicts that 4K TVs will top 80% of households in approximately 10-12 years.
“The price curve for 4K TVs will be similar to that of HDTVs, but at a slightly faster rate of decline. While 4K is priced at the high end now, it will decline to mass-market levels over the next two to three years. Like flat-panel HDTVs, 4K TV prices will continue to decline as unit sales volume increases,” said Barbara Kraus, director, research, Parks Associates.
The US market research firm analysed the impact of 4K technology on service and content providers and CE manufacturers, and their report looks at the TV technology market, including the importance of 4K content to CE manufacturers as well as delivery issues via OTT and pay-TV services. The research also offers a detailed comparison of 4K to previous rollouts of 3D and HD technology.
According to their analysis, 4K will initially be delivered via OTT services, with companies like Netflix, Comcast, and Amazon already working on 4K-based offerings, and as 4K traffic increases over the next two years, traffic demands on broadband networks will grow dramatically. As a result, broadband operators are aggressively looking into bandwidth-saving technologies, including next-generation video compression technologies.
“4K TV adoption is following the same pattern as HDTV, but prices are dropping more quickly,” added Stuart Sikes, president, Parks Associates. “With the increasing convergence in the connected home, innovations such as 4K have implications for a variety of players throughout the home entertainment ecosystem.”
The research firm will discuss new media and licensing strategies, as well as the implications of 4K and other innovative technologies and applications in the connected home, at the 18th annual Connections: The Premier Connected Home Conference, 13-15 May in San Francisco. Keynotes include AT&T, Cisco, Lowe’s, Arris, and iControl Networks, and the event will feature multiple sessions analysing the video ecosystem, including connected CE and OTT solutions.
By David Fox