IMS Research Finds HP Primarily Responsible for Doubling of U.S. Market for Digital TV Tuner Cards on the PC

“HP has taken an aggressive first step in transforming the PCTV market from one driven by the aftermarket to one driven by the OEMs,” said Stephen Froehlich, analyst at IMS Research. “This one decision has had profound effects on the market, driving prices down, volumes up, and increasing the share of the US & Canadian market for digital PCTV tuners – despite the fact that HP’s initiative extends to both its portable and desktop PC lines in Europe. The big question looming over the market is who will go next and when.”

“We see digital TV as a technology key to building the market for multimedia PCs, where we feel we have a competitive advantage,” said John Cook, vice president of worldwide marketing, Consumer PC Business Unit, HP. “Therefore, we are willing to invest in building this market so that a larger share of PCs will sell with the enhanced graphics, larger screens, blue-laser DVD drives and other hardware that complements the multimedia experience on the PC.”

Other conclusions from the report include:

• Penetration of TV tuners in U.S. portable PCs will be low until the Advanced Television Systems Committee (ATSC) approves a mobile and handheld variant of the standard (ATSC-M/H). Standardization is forecast for mid-2009 with chipsets shipping in volume near the end of 2010.
• The market for analog + digital hybrid PCTV tuners is forecast to take a rollercoaster ride, with volumes peaking in 2008, dropping to half of their peak by 2010 due to U.S. analog switch-off, only to begin growing again in 2012 as digital terrestrial rollouts gain momentum in Asia.

More: The Market for Digital Television on the Personal Computer 2007 – Worldwide