Consumers who have purchased a high-definition TV (HDTV) set in anticipation of the great HD revolution may be in for a long wait. The downturn, it seems, may mean the revolution is on hold.
Although HDTV is big in Japan, its roll-out in the rest of Asia has so far been patchy. In 2008 there were 7.6 million HDTV units sold in Asia-Pacific, according to Euromonitor. This represents a growth of 35 per cent over 2007. The retail value of these units was US$14 million, an increase in value of 40 per cent versus 2007. Research firm In-Stat has predicted big things for the technology, forecasting that HDTV households in Asia-Pacific would reach 42.1 million by 2012.
However, Guy Hearn, director of communication insights for Omnicom Media Group Asia-Pacific, believes growth will now stall as recession places downward pressure on sales in many Asian markets.
“With a reduction in private consumption predicted in most categories, household goods are likely to be subject to longer purchase cycles, as consumers defer purchase either to increase savings, or to wait for bargains,” he says.
“The impact of this is likely to be heaviest in markets forecast to feel the worst impact from the recession, specifically Japan, Taiwan, Singapore and Hong Kong. Given that these markets accounted for more than 55 per cent of sales in 2008, HDTV faces significant challenges to maintain growth in 2009.”
Technical barriers and problems with infrastructure including a lack of content, slow conversion from analogue to digital and lack of bandwidth and satellite capacity constraining operators from delivering HD, have also slowed the development of HDTV.
The consumer aspect in particular is important, according to, Nick Binns, partner of The Exchange for Mindshare. “HDTV manufacturers need to step up consumer education to inform people about the benefits of HD. Currently the technology is leading the market; the market is not demanding the technology; consumers need to understand why HDTV is something they must have,” he says.
Even in China, one of the fastest-growing markets for HD sets, the story is the same. Binns calls the roll-out of HD “extremely slow and clearly biased towards municipal cities”. HD channels are few in number and require special subscriptions. Again one of the major factors has been lack of promotion and advertising around HD. “There’s a lot of confusion on the technology and the difference and benefits compared to traditional TV. HDTV is still far from being a mass-market function,” says Binns. Despite these issues, China and other emerging markets remain the big hope for HDTV in the downturn. This year the Chinese authorities aim to develop a HD initiative in 37 top Chinese cities.
Debbie Lee, founder/MD of Green Worldwide and former head of English & Pockett Asia, agrees that for HDTV to take off in a big way, “non-commercial entities including Governmental departments need to pave the way. They must see HD as a societal benefit venture to encourage investment in better infrastructure.”
She adds that lack of variety is continuing to hinder take-up, with channels offering HD largely limited to documentary fare such as Discovery and National Geographic. “For HDTV to move forward consumers must be given more choices in their viewing to entice them to convert.” In Southeast Asia, Singapore’s StarHub was the first to roll out a commercial HDTV service in 2007. Ong Bee Lian, StarHub’s head of pay-TV and entertainment, says the broadcaster has made its HD set-top boxes available on a rental basis to encourage trial of the service. He adds that adoption will rise with a greater variety of content and the falling price of HD sets.
“Consumers are more informed about HDTV than they were two years ago.”
However, Louis Boswell, general manager of AETN All Asia Networks, is less optimistic, arguing that only if all parties involved, including channel providers, pay-TV firms and terrestrial stations, believe in the HD proposition will “a virtuous circle of belief” lift the technology.
That sort of co-operation may be difficult to engineer.
Got a view?
Email [email protected]
Although HDTV is big in Japan, its roll-out in the rest of Asia has so far been patchy. In 2008 there were 7.6 million HDTV units sold in Asia-Pacific, according to Euromonitor. This represents a growth of 35 per cent over 2007. The retail value of these units was US$14 million, an increase in value of 40 per cent versus 2007. Research firm In-Stat has predicted big things for the technology, forecasting that HDTV households in Asia-Pacific would reach 42.1 million by 2012.
However, Guy Hearn, director of communication insights for Omnicom Media Group Asia-Pacific, believes growth will now stall as recession places downward pressure on sales in many Asian markets.
“With a reduction in private consumption predicted in most categories, household goods are likely to be subject to longer purchase cycles, as consumers defer purchase either to increase savings, or to wait for bargains,” he says.
“The impact of this is likely to be heaviest in markets forecast to feel the worst impact from the recession, specifically Japan, Taiwan, Singapore and Hong Kong. Given that these markets accounted for more than 55 per cent of sales in 2008, HDTV faces significant challenges to maintain growth in 2009.”
Technical barriers and problems with infrastructure including a lack of content, slow conversion from analogue to digital and lack of bandwidth and satellite capacity constraining operators from delivering HD, have also slowed the development of HDTV.
The consumer aspect in particular is important, according to, Nick Binns, partner of The Exchange for Mindshare. “HDTV manufacturers need to step up consumer education to inform people about the benefits of HD. Currently the technology is leading the market; the market is not demanding the technology; consumers need to understand why HDTV is something they must have,” he says.
Even in China, one of the fastest-growing markets for HD sets, the story is the same. Binns calls the roll-out of HD “extremely slow and clearly biased towards municipal cities”. HD channels are few in number and require special subscriptions. Again one of the major factors has been lack of promotion and advertising around HD. “There’s a lot of confusion on the technology and the difference and benefits compared to traditional TV. HDTV is still far from being a mass-market function,” says Binns. Despite these issues, China and other emerging markets remain the big hope for HDTV in the downturn. This year the Chinese authorities aim to develop a HD initiative in 37 top Chinese cities.
Debbie Lee, founder/MD of Green Worldwide and former head of English & Pockett Asia, agrees that for HDTV to take off in a big way, “non-commercial entities including Governmental departments need to pave the way. They must see HD as a societal benefit venture to encourage investment in better infrastructure.”
She adds that lack of variety is continuing to hinder take-up, with channels offering HD largely limited to documentary fare such as Discovery and National Geographic. “For HDTV to move forward consumers must be given more choices in their viewing to entice them to convert.” In Southeast Asia, Singapore’s StarHub was the first to roll out a commercial HDTV service in 2007. Ong Bee Lian, StarHub’s head of pay-TV and entertainment, says the broadcaster has made its HD set-top boxes available on a rental basis to encourage trial of the service. He adds that adoption will rise with a greater variety of content and the falling price of HD sets.
“Consumers are more informed about HDTV than they were two years ago.”
However, Louis Boswell, general manager of AETN All Asia Networks, is less optimistic, arguing that only if all parties involved, including channel providers, pay-TV firms and terrestrial stations, believe in the HD proposition will “a virtuous circle of belief” lift the technology.
That sort of co-operation may be difficult to engineer.
Got a view?
Email [email protected]
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