4K TVs to Be Almost Half of TVs Shipped in 2018; Content Gap Narrows

Ultra HD 4K TVs will be nearly half of all TVs shipped worldwide this year, said a Futuresource report last week, calling it a “thriving segment.” By 2022, the installed base of 4K TVs will be triple that of today, and household penetration will reach 37 percent, it said. The content gap that has existed for 4K content “is being filled,” with significant growth in available 4K content in the first half of the year, led by international sports: the Winter Olympics in South Korea, broadcast by Japan’s NHK and the Olympic Broadcasting services, and the FIFA World Cup games in Russia, recorded in 4K and delivered via satellite, cable, IP and over-the-top video services. The high-resolution video format is an opportunity for Blu-ray, though consumer uptake of 4K Blu-ray players “is slow, perhaps due to a lack of vendor initiatives and retailer support” beyond the U.S. and Canada, said Futuresource. The availability of 4K UHD content on subscription VOD services reinforces consumer perception that streaming is the cutting edge of entertainment technology, said analyst Tristan Veale, noting there's a “very small, if any, cost premium" for Ultra HD via SVOD services, which he called “contrary to positioning this as a premium product.” Service providers and rights holders are creating a period of “turbulent pricing” by experimenting with price points, content bundles and delivery mechanisms, said Veale, creating a consumer experience that could become “disjointed and fragmented.” Aggressive promotions are bringing 4K UHD content to the price level of HD movies, he said.