UHD SPECIAL - AUTUMN 2017 UHD_AUTUMN 2017 | Página 3

Futuresource Consulting shares its latest findings on the UHD sector TVs will be sold this year, almost double the quantity sold throughout 2016 (57m). •  We will also start to see household saturation and penetration diverging in 2017 as early adopters with 2014/2015 Ultra HD TVs are buying new models with High Dynamic Range (HDR); Wider Colour Gamut (WCG); the latest available HDMI specification (2.0b) and the UHD content protection standard (HDCP 2.2) to provide them a higher quality picture and better connectivity. •  Steady although not exceptional growth of Ultra HD Blu-ray players is expected with the installed base to reach 2m globally by the end of 2017. There are now a number of hardware players in the market with 4K UHD TVs •  Prices of UHD TVs are falling rapidly worldwide. In the US, where the average price in 2015 was $1,314 (€1,430), by the end of 2016 this fell to $1,181 with the rate of decline to remain steady moving forward. The high awareness of UHD combined with lower prices means that those who are intending to upgrade the main TV are shopping around for a 4K UHD TV. Futuresource expects that 107m Ultra HD Samsung, the market leader, facing stronger competition. •  Throughout 2017, 1.4m UHD Blu-ray players are expected to be sold. Digital Subscription 4K UHD •  The SVoD market is set to grow phenomenally over the coming years, with an increasing quantity of UHD content available and a growing install base of UHD devices to view it on. By year end 2017 there is expected to be 33m SVoD subscriptions with access to 4K UHD content and a UHD TV to watch it on. •  Netflix and Amazon Prime Video continue to drive UHD within SVoD. Smaller services are launching too but typically limiting this to a premium tier package, much as Netflix has done. Amazon and Hulu both offer UHD at no additional cost. •  HBO stands out as the major international player that is not supporting UHD, with currently no announced plans to roll-out. Analyst Findings 4K UHD Broadcast There is some more momentum behind UHD broadcast in 2017 with a number of major broadcasters ramping up their offering, particularly sports. Europe is ahead of North America for UHD broadcast equipment sales due to a number of competing sports leagues with key sporting flagships including Formula 1 and Premier League Football being broadcast in UHD. However, there is still limited consumer demand for regular content and this is tempering the investment from broadcasters to upgrade equipment or launch channels. Analysts: Strong uptake of 4K TVs According to research and consultancy firm Strategy Analytics, shipments of 4K TVs reached 58.1m units globally in 2016, an increase of 78% from the 32.7m units shipped in 2015. The company forecasts that the market will grow a further 43% in 2017 to 83m units or 36% of all TVs shipped. Annual 4K Ultra High Definition TV Displays: Global Market Forecast TV shipments Published: May 2017 will exceed 100m units in 2018 and grow to account for 72% of all TVs sold by Charts 2022. The installed base of 4K TVs reached just under 100m units at the end of 2016 and will climb to more than 825m units by 2022 A number of interlinked factors are behind the strong uptake of 4K TV displays, including: Consumer Electronics •  LCD TV panel vendors push towards larger, premium displays. In recent years many of the world’s major LCD TV panel makers such as LG Display, Innolux, AUO and Samsung Global Ultra High-Definition TV Shipments 200 Middle East and Africa 180 160 Central and Eastern Europe 140 120 Central and Latin America 100 Asia Pacific 80 60 Western Europe 40 20 0 North America 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: Connected Home Devices (CHD) Global Ultra High-Definiti on TV Installed Base 900 2021 2022 Display have been transitioning away from 1080p panel production and have shifted much of their capacity to making 4K panels. This trend is set to intensify in 2017 as panel vendors focus on improving profits by expanding production of large 4K panels and even opening their first 8K production lines. •  Falling prices for 4K TVs. The average price for a 4K TV has dropped significantly over the past five years from more than $20,000 back in 2012 to well under $1,000 today. A large number of 4K TV models are now priced below $500 giving budget conscious consumers a route into the market. Within the next two to three years we expect the premium for a large screen (50-inch and above) 4K TV over an equivalent 1080p TV to be almost non-existent. •  A growing appetite for larger screen TVs across all regions. The falling ‘per inch’ cost of large screen TVs is encouraging consumers ADVANCED TELEVISION 3