NPRA ’08: Digital TV helps MMA market

01 April 2008 17:56  [Source: ICIS news]

SAN ANTONIO, Texas (ICIS news)--The move to digital television broadcasting in the US is just a year away and driving demand for high-definition sets, in turn benefiting the methyl methacrylate (MMA) business, a producer said on Tuesday.

Increased purchases of high-definition televisions that which use liquid crystal display (LCD) panels, is driving up demand for the LCD raw material MMA, with Samsung and LG ramping up production of such goods, a seller said on the sidelines of the National Petrochemical & Refiners Association (NPRA) annual meeting in San Antonio. The meeting began on Sunday and runs through Tuesday.

LCD panels are rapidly growing to become the dominant display technology for television because of their high-definition digital qualities, and accounted for 40% of shipments in 2007 and 64% of market value. By 2012, LCD panels will account for over 80% of the market, according to UK research firm Understanding & Solutions.

US federal law requires that all full-power television broadcast stations stop broadcasting in analogue format and broadcast only in digital format on 17 February 2009. The change is causing consumers to go out and purchase compatible TVs, the MMA producer said.

This is the first time in over half a century that the basic format for TV transmission has changed. The last major change in TV transmission standards took place when compatible colour broadcasts began in 1953.

There are an estimated 70m of analogue television sets in the US, according to US research firm DisplaySearch. Those still using analogue televisions to receive transmission broadcasts will need to purchase a converter box. Those who receive cable or satellite transmissions will not be immediately affected by the change.

“The bottom line is everyone who wants to watch television in 2009 [via broadcast transmissions] will need to purchase a converter box or buy a digital television. “It's a great excuse to buy a new hi-def television set,” the MMA seller said.

Last year, global TV shipments rose 4% to almost 200m units, worth over $100bn (€63bn), and growth will accelerate to reach 280m units, worth $160bn, by 2012, according to a consumer electronics industry by Understanding & Solutions.

For people unable to buy new digital TVs, US Congress is arranging to offer cash vouchers for the purchase of digital tuners.

US MMA sellers include Lucite, Rohm and Haas, Arkema and Evonik Degussa.

 ($1 = €0.63)

By: Heather McGuire Doyle
+1 713 525 2653

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