• by Jack Loechner , Staff Writer @mp_research, August 17, 2003

Digital TV Penetration Continues To Outpace Broadband

According to eMarketer's new report, Digital Television 2003, eMarketer forecasts the number of US digital TV households to reach 56.5 million in 2005, up from 38.9 million at the end of 2002. This equates to a rise in digital TV penetration from 35.9% of households in 2002 to 50% in 2005.

Digital TV Households in the US (millions)

	DTV Households	Total Households
2002	38.9	108.5
2003	44.7	110.0
2004	50.1	111.5
2005	56.5	113.1

Source: eMarketer July 2003

"By way of comparison, digital TV household penetration will significantly exceed broadband Internet penetration by 2005, when approximately 30% of US households will have broadband Internet compared to 50% with digital TV," says eMarketer Senior Analyst Ben Macklin. "The emergence of digital TV has spawned a number of advanced TV services such as video-on-demand, high-definition TV and personal video recorders, all of which are transforming the TV viewing experience," adds Macklin.

eMarketer forecasts annual video-on-demand revenues to rise from $720 million in 2003 to $1.8 billion in 2006.

Video-on-Demand Revenue in the US

	2002	2003	2004	2005	2006
Digital cable subscribers (mil)	19.2	22.5	24.5	26.9	31.2
VOD-enabled HH (mil)	7.2	15.8	20.8	25.6	29.6
%VOD HH using VOD (%)	27	38	46	52	55
VOD users (mil)	1.9	6.0	9.6	13.3	16.3
Avg monthly VOD spend ($)	10	10	10	10	9
Annual revenue (mil $)	228	720	1,152	1,596	1,760

Source: eMarketer

Find out more about the Digital Television report here.