October 9, 2018
2018 will be the year 4K UHD moves mainstream, accounting for nearly 50% of all TVs shipped worldwide by year end, according to a market tracking report from Futuresource Consulting.
The report, which includes TVs, broadcast coverage, STB installed base, Blu-ray players, Blu-ray software, digital transactional video and digital subscriptions, focuses on the latest key developments and future consumer trends in 4K UHD.
“As with HD before it, 4K UHD is being driven by TV display purchases,” said Tristan Veale, market analyst at Futuresource. “It’s a thriving segment, and by 2022 the installed base of 4K UHD TVs will be three times larger than today, achieving 37% global household penetration.”
Although there is a content gap, that gap is being filled, according to Futuresource. The amount of 4K UHD content available to consumers has grown significantly over the first half of 2018, with broadcast content helped along by a range of international sporting events with worldwide appeal, according to the consulting firm.
“February’s Winter Olympics in South Korea was broadcast in 4K UHD, thanks to the efforts of the Olympic Broadcasting Services and Japanese broadcaster NHK,” Veale said. “Over in Russia, all FIFA World Cup games were also shot in 4K UHD, delivered via satellite, cable, IP and OTT. These two sporting events proved to be ideal test beds for broadcasting the format and demonstrating its benefits.”
Beyond broadcast, 4K UHD presents a window of opportunity for Blu-ray, with up to 30 4K UHD Blu-ray discs released every month and player prices dropping into the sweet spot, according to the consulting firm. “Despite this, consumer uptake of 4K UHD Blu-ray players is slow, perhaps due to a lack of vendor initiatives and retailer support beyond the USA and Canada,” the firm stated.
The availability of 4K UHD content on SVoD services reinforces consumer perceptions that this delivery mechanism is at the cutting edge of entertainment technology, according to Futuresource.
“However, there is a very small, if any, additional cost for UHD via SVoD services which is contrary to positioning this as a premium product,” the firm stated.
Digital transactional models for 4K UHD are also experiencing “a period of turbulent pricing,” according to Futuresource.
“Service providers and rights holders alike are experimenting extensively with price points, content bundles and delivery mechanisms, creating a customer journey that could become disjointed and fragmented,” according to the firm.
Although UHD Blu-ray prices remains largely consistent, with a premium price, digital services are significantly undercutting this in an attempt to invigorate the format and drive a digital ownership mentality.
“With digital UHD it’s all about capturing a big slice of the audience as quickly as possible, attracting eyeballs and locking people in for the long-term,” Veale said. “As a result, we’re seeing some aggressive promotions out there, with 4K UHD content available to buy at prices in line with the purchase price of HD movies. However, companies need to keep an eye firmly fixed on consistency, ensuring confusion remains at a minimum.”
View Futuresource reports here.