By 2020, 250 million TV viewers around the world will be ready to watch shows using high dynamic range (HDR). Annual worldwide sales of HDR-enabled TVs in 2020 will reach 58 million units. Penetration of HDR TVs will reach nearly 25 percent of homes in the US.
HDR is one of the most important components of Ultra HD TV, the new standard which is being introduced around the world. It improves TV picture by increasing the range of colors and brightness. HDR programming has been launched by online video services such as Netflix and Amazon, and is expected to be introduced by leading broadcasters and pay-TV companies over the next couple of years.
TV manufacturers like Samsung and LG are keen to maximize the revenue potential of this new technology. HDR can make a noticeable difference for most viewers so there is an opportunity to accelerate the TV upgrade cycle. Despite these analyses, research also strikes a note of caution. The company's latest consumer research shows that many viewers are confused about Ultra HD and 4K TV. In a survey of 6000 US and European consumers, 15 percent of respondents claimed that Ultra HD TV services are available from their TV service, and 8 percent claimed that they have watched Ultra HD programs. These figures are much higher than expected given that few Ultra HD services are currently available and suggest that there is considerable confusion over what Ultra HD means.