HDTV-ready displays, which will be combined with
digital set-top converters for a complete system, will start as low as
$2799. First generation set-top converters are expected to cost between
$1,600 and $3,000, but lower priced models ($700) will be available in
early 1999.
1999 and Beyond
Though manufacturers have not announced pricing for second generation
digital television products, consumers can expect to see prices come down
as demand and production increase and economies of scale are created.
Even as features are added to digital products, prices will likely fall
and they will become affordable for a larger number of consumers.
The consumer electronics industry is characterized by significant and
rapid price reductions that are indicative of what we can expect with
digital TV products. In the early 1960's, the average price for a color
TV was around $400 -- about $2100 in today's dollars. Since then, prices
have dropped to just $300. Even in the last ten years, average factory
prices of several consumer electronics products dropped significantly,
while features were added.
For example, between 1987 and 1997:
- CD players were introduced with added features (greater capacity,
programmability, easier connections, anti-skip technology and durability)
while experiencing a 24% price reduction;
- Home cassette decks were introduced with added features (better noise
reduction, easier recording, lighter weight, easier connections, and
dual-bay systems) while experiencing a 28% price reduction;
- Stereo speakers were introduced with added features (subwoofers, home
theater capabilities, streamlined sizes and styles) while experiencing a
33% price reduction;
VCRs were introduced with added features (auto programming, stereo hi-fi,
freeze frame, and universal remotes) while experiencing a price reduction
of 32%;
- Camcorders were introduced with added features (color viewfinders,
image stabilization, longer battery life, LCD displays, lighter weight)
while experiencing a 45% price reduction.
Analog broadcasts will continue for at least eight years and probably
longer. And, with the addition of a set-top box, consumers can continue
to use their analog televisions to receive digital broadcasts. With a
gradual transition period and the consumer electronics history of rapid
price reductions, consumers can be assured an affordable transition to
digital television.
(Source: Consumer Electronics Manufacturers Association)
Return to: Digital Television Guide
|
