Friday, October 22, 2010

How Big a Market for 3D TV?

There's always a chicken-and-egg problem when new video devices, supporting new video formats, are introduced.

Devices are useful when there is lots of content available, but lots of content isn't made available until there is a large installed base of terminals.

That isn't going to be any different with 3D television. DisplaySearch thinks those problems will be overcome over time, and they have been in the past for new content formats.

The firm forecasts that 3.2 million 3D TVs will be shipped in 2010, with growth to over 90 million in 2014. Based on this forecast, 3D will grow from two percent of all flat panel TVs shipped in 2010, to 41 percent in 2014.

Some of us wouldn't be surprised if those forecasts fell short, though. The 3D experience imposes new conditions on television viewing, which is among the easiest of all consumer content experiences. There is value, at least for some viewers. The issue is how much new value, compared to the higher cost.

If I had to guess, right now, I'd say the adoption forecast is too steep. 

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