High-Definition TV Services Finally Establish a Foothold Finds In-Stat/MDR.

Business Editors/High-Tech Writers

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--April 5, 2004

After years of hype and promises, high-definition television (HDTV) services have finally captured the imagination of a small, but growing, audience of TV viewers who now enjoy HDTV's extraordinary

clear and crisp picture quality. With its life-like detail and impressive audio performance, HDTV service is also exciting TV broadcasters and multichannel service providers, according to In-Stat/MDR (http://www.instat.com), a high-tech market research firm. HDTV service, which is becoming widely available in a few select countries, is being marketed as a premium service that has the potential to boost incremental monthly revenues for cable and satellite operators, while also providing terrestrial TV broadcasters with a new weapon in their fight against pay-TV services.

Currently, just over 4 million worldwide TV households receive and watch HDTV programming, although most industry insiders expect that number to climb rapidly over the next few years. Increasing consumer demand for HDTV service is also driving sales of new consumer electronics products, such as HDTV sets and HD-capable set top boxes. However, there are still several market challenges that are reigning in the growth of HDTV services. These include the need for more HD programming, lowering the cost of HD equipment, increasing the availability of HD service, and better educating the public about the benefits of HDTV.

In-Stat/MDR also finds that:

-- Total worldwide terrestrial, satellite, and cable TV

households that are watching HD programming on an HDTV set are

projected to rise to almost 6 million by the end of 2004, and

ultimately reach 45 million by the end of 2008.

-- HDTV service remains extremely limited in its reach, with only

four countries offering the service beyond an experimental

basis. These countries are Japan, the United States, Canada,

and Australia. However, a few other countries, mostly in the

Asia-Pacific region, are expected to roll out limited HDTV

services in the next year.

-- Japan is leading the HDTV charge with over 2 million

households receiving and watching HDTV programming. The United

States is second with just over 1.5 million households.

The report, "High-Definition TV Services: Coming to a Home Near You?" (# IN0401241MB), examines the availability of high-definition television services around the world. It covers market and industry drivers for HDTV service subscribers and viewers, and discusses how the availability of HD programming and the development of different HD business models are impacting the market for HDTV services. The report also takes an in-depth look at existing HDTV service providers, and identifies the "fast movers" in the satellite, cable, and terrestrial broadcast industries. The report provides five-year forecasts for worldwide HDTV households by transmission platform (satellite, cable, and terrestrial), worldwide HDTV households by geographic region, U.S. HDTV households, and the installed base of U.S. HDTV sets. To purchase this report, or for more information, please visit: http://www.instat.com/catalog/Ccatalogue.asp?id=39 or contact Erin McKeighan; emckeighan@reedbusiness.com or 480-609-4551. The report is priced at $2,995.

About In-Stat/MDR

In-Stat/MDR (http://www.instat.com) offers a broad range of information resources and analytical assets to technology vendors, service providers, technology professionals, and market specialists worldwide. The company stands alone in its ability to integrate both supply-side and demand-side research methodologies into a single comprehensive view of technology markets and products. This capability relies on a unique ability to cover the entire value chain from engineering-level technology, through equipment, infrastructure, services and end users.

In-Stat/MDR is part of the Reed Electronics Group, a division of Reed Elsevier (www.reedelsevier.com), a world-leading publisher and information provider. With over 38,000 employees worldwide, Reed Elsevier operates in the science & medical, legal, education and business-to-business industry sectors, providing high value and flexible information solutions to professional end users, with increasing emphasis on the Internet.