Audio Video News

June was the third consecutive month of increases in sales of digital video products, according to figures released July 18 by the Consumer Electronics Association.

Steadily dropping prices are attracting customers in an otherwise idle economy. The trade organization reports that sales of DTV sets and monitors in June totaled 90,973 units—a dollar volume of more than $159 million. The average per unit selling price had dropped by almost $200 from May, CEA statistics show. Factory-to-dealer sales of digital monitors and televisions totaled 227,349 units in the second quarter, exceeding $406 million in sales.

By year's end, consumers will have invested almost $5 billion in DTV products, the report predicts. "These impressive DTV sales figures represent another success not just for manufacturers, but for consumers and the overall transition from analog to digital. Consumers clearly are sold on digital quality," said Gary Shapiro, president and CEO of the CEA. "As more Americans choose DTV products, more will experience the enhanced audio, video, multicasting and interactive services that DTV brings."

The trend will continue to gain strength only if broadcasters and production companies sustain their efforts to create compelling programming in the format, Shapiro warned. "To continue this strong momentum, we call on broadcasters and other content creators to provide more high quality, digitally originated programming, and we call on the cable industry to resolve the outstanding issues of must-carry and cable–DTV product compatibility," he added.

Sales of DTV products have been boosted by the growing popularity of DVD, in itself a big growth area for the electronics industry. June was also a banner month for sales of DVD players, which increased 41% over May, with a total of more than 920,000 units sold. That number—almost as many players as were sold during the format's first official year—makes June the most successful month ever for DVD. Player sales have increased 25% year-to-date over 2000, CEA stats reveal.

The news is particularly encouraging given that the summer months are traditionally very slow for electronics retailers. "June and the summer months are traditionally the lowest sales points of the year, but with more affordable digital products on the market, with lower prices for both DVD players and DTV models, consumers are seizing the opportunity to create their own digital entertainment experiences," Shapiro remarked. "As more consumers come in contact with digital video products, we can only expect sales to increase."

Driven by DVD and digital programming, the market for DTV sets and displays will continue to grow. The CEA predicts DTV unit sales of 1.1 million this year, 2.1 million in 2002, 4 million in 2003, 5.4 million in 2004, 8 million in 2005, and 10.5 million in 2006.