HDTV now in one quarter of US households, but what's on?

While some US consumers are using HDTVs for video games, and some are watching true high-def broadcasts, HDTV sales are also being driven by plummeting display prices and the upcoming changeover to digital TV broadcasting.

Although 25 percent of US households now own at least one high-definition TV set, owning an HDTV and actually viewing HD content are not one and the same for everyone, according to new research from a prominent television industry analyst group.

A total of 5.5 million US households purchased their first HDTV set over the recent holidays and Super Bowl season, raising HDTV penetration to 25% from a previous level of 20% in September, according to results of the study, conducted by Magid & Associates just after the 2008 Super Bowl.

From September 2007 to January 2008, three million homes added a second HDTV, pushing multiple HDTV set ownership to nearly 10 million.

Clearly, some consumers are using their HDTV sets with HD content. Among those who brought home their first HDTV sets over the past year, 18% said they did so to connect to a Microsoft Xbox 360, Sony PlayStation 3, or other HD video game console.

Moreover, a total of 70% of those with at least one HDTV set have taken steps to arrange for obtaining HD programming reception, according to the research.

Among the 30% who haven't arranged for HD programming, about one-half are satellite customers, most of whom say that they're not ready to buy the new equipment needed for HDTV over satellite.

But other factors behind HDTV purchases mentioned in the survey results included falling prices for high-def displays, "the sleek and contemporary appearance" of the display itself, and an erroneous belief among some households that the switchover to digital broadcasting -- slated to happen across the US in February 2009 -- requires consumers to have an HDTV in order to pick up signals.

Results of Magid's study are generally similar to recent reports from ABI Research, although ABI found that even fewer consumers with HDTVs -- 56%, as opposed to the 70% reported by Magid -- are subscribing to HD programming packages.

Meanwhile, cable provider Comcast and satellite providers DirecTV and Dish Network have been trading HD quality for quantity, recompressing and degrading HD video on some of their systems in order to offer more channels of HD programming.