But consumer confusion could stall growth of new services

Milton Keynes, UK – September 7th, 2016: By 2020 250 million TV viewers around the world will be ready to watch shows using the latest technology known as High Dynamic Range (HDR). According to a new report from Strategy Analytics’ Intelligent Home Group, annual worldwide sales of HDR-enabled TVs in 2020 will reach 58 million units, bringing the number of homes with at least one HDR-enabled TV to 107 million. Penetration of HDR TVs will reach nearly 25% of homes in the US.

High Dynamic Range is one of the most important components of Ultra HD TV, the new standard which is being introduced around the world. It improves TV pictures by increasing the range of colours and brightness. HDR programming has been launched by online video services such as Netflix and Amazon, and is expected to be introduced by leading broadcasters and pay TV companies over the next couple of years.

“TV manufacturers like Samsung and LG are keen to maximise the revenue potential of this new technology,” says David Watkins, Director, Connected Home Devices at Strategy Analytics. “HDR can make a noticeable difference for most viewers so there is an opportunity to accelerate the TV upgrade cycle.”

In spite of these forecasts, Strategy Analytics strikes a note of caution. The company's latest consumer research shows that many viewers are confused about Ultra HD and 4K TV. In a survey of 6000 US and European consumers, 15% of respondents claim that Ultra HD TV services are available from their TV service, and 8% claim that they have watched Ultra HD programmes. These figures are much higher than expected given that few Ultra HD services are currently available and suggest that there is considerable confusion over what Ultra HD means.

“The TV industry has put a great deal of effort into establishing the next generation of TV technologies,” comments David Mercer, VP and Principal Analyst. “The challenge now is to communicate the benefits of these enhancements to viewers and to reduce the uncertainty which could stall growth of new services.”