The picture is clear for retailers: high-definition TV is today’s hot item and will be for years to come.

Some 25 percent of U.S. households will own an HDTV set by the end of 2006 because of sharp drops in prices caused by a large number of new competitors to the market and the government-mandated transition from analog to digital TV planned for early 2009, according to Jupiter Research, which follows the high-tech industry.



At that time, all broadcasters are required to turn off their traditional analog signals and send only digital transmissions.



Those who do not purchase digital-ready TVs by then will need to get converter boxes that will enable them to get over-the-air programming without signing up for cable or satellite TV. Most of those who are seeking to upgrade their TVs to the superior picture quality of HD sets are scrambling for flat-screen LCD or plasma TVs, where prices have been cut in half since the beginning of last year.



HDTV has significantly higher resolution than traditional television, allowing much more lifelike pictures and digital sound. They also feature wider screens able to capture movie formats, which are cut off by standard sets.



Tweeter Home Entertainment Group, the parent company to the consumer electronics retail chain, said the average selling price for its HDTVs dropped 16 percent for the second quarter in a row, pushing up unit sales for the quarter that ended Sept. 30 by more than 54 percent.



Tweeter and other retailers expect HDTV prices to continue to decrease and for sales to be brisk in 2006 and beyond.



More here.