 | | |  | HDTV: A Shopper's Survival Guide
By
Cliff Edwards
The words high-definition TV are enough to give many consumers the sweats. We'll help you relax and buy smarter
Flat
or fat? EDTV or HDTV? LCD or plasma? Anyone who's on the hunt for a new TV set these days knows getting a dream screen can be more confusing than the plotline of Days
of Our Lives. It's no wonder: The TV market is undergoing its biggest change in 50 years, when the first color set was introduced.
Manufacturers
such as Sony
(NYSE:SNE
- News),
Panasonic
(NYSE:MC
- News),
and Toshiba are leading a charge to develop flat-panel sets, which range from plasma and liquid-crystal displays (LCDs) to rear-projection sets and even to advanced versions of the incumbent cathode ray tube (CRT). At the same time, new digital standards are leading to the rise of high-definition programming, which eventually will replace those fuzzy analog broadcasts that now rule.
By
yearend, 13% of U.S. households will have digital TVs, according to the Consumer Electronics Assn. But that number is expected to jump to at least 65% by 2008 as prices fall sharply and government regulations on broadcasting digital programming take effect.
SIZE
AND PRICE. Clearly, the buzz is building. You can't watch a new movie nowadays without seeing glitzy flat-panel TVs beaming images ostentatiously in the background. And friends and neighbors increasingly are making it hard to keep up with the Joneses.
But
even the experts seem confused about how things will shake out. Research analysts at market researcher iSuppli argue that consumers most likely will go with big brand names on their purchases. However, a December survey of 1,200 potential shoppers conducted by research firm IDC found brand tied for last with a TV's "aspect ratio" -- whether its image is widescreen or letterbox style -- as an important reason in buying.
Not
surprisingly, the top factors influencing American shoppers are screen size and price. "The HD market is moving from early adopters who covet having a TV mounted on a wall to the early majority that places a greater priority on the largest picture at the lowest price," says Samsung Vice-President Jim Sanduski.
LOST
HAIR. Projection sets are most likely to fit that bill. Many that are 45 inches and above now cost less than $3,000, offering great home theater experiences. Unfortunately for shoppers, the rear-projection category is the most confusing. Potential customers are pulling out their hair trying to determine how technologies such as digital light processing (DLP), liquid crystal on silicon (LCoS), LCD, and CRT differ.
Don't
get hung up on the differences. All these technologies look good, particularly in darkened rooms with plenty of space to sit back and relax. One caveat, however, is that manufacturers believe rear-projection CRTs are likely to go away over time as the other technologies improve enough to cut a set's depth and allow it to be mounted on a wall.
TV
makers appear most optimistic about LCD technology in all types of sets. Part of that may be economics. Huge new LCD-panel factories will come online next year and drive prices lower as manufacturers compete for sales. LCD sets also cost less to manufacture, since the technology has been around longer as an extension of LCDs for personal computers, offering the potential for higher margins.
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