DVD players have penetrated at an unprecedented pace since their debut in 1997. At the end-2004, nearly 65% of all U.S.TVHH had at least one DVD player. We estimate 75% DVD penetration of U.S TVHH by the end of 2005 (P. 3). But given the pace at which HD sets are being acquired, coupled with the capacity limitations of current DVDs, a general upgrade to high-definition DVD players and disks appears inevitable. In 2005, we project 400K households will have high-definition DVD players. We estimate that will increase to 15.1mil. homes in 2009. Penetration of TV households will rise from 0.4% in 2005 to 12.8% in 2009 (< < <).
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