True, we have been hearing about the benefits of high-definition television (HDTV) for years: Japanese broadcaster NHK first showed the world its HDTV prototype in 1979. But the uptake of HDTV is poised to accelerate, even if broadcasters fail to meet the FCC’s December 31, 2006, deadline to cease using analog signals and convert to digital—that is, providing 85 percent of American households are able to view digital channels. Nonetheless, IDC, a technology research firm, predicts that the HDTV market will be worth some $70 billion by 2008.

HDTV has already dramatically altered the television landscape. More than 50 manufacturers showed LCD TVs at the trade’s Consumer Electronics Show in Las Vegas last January. Computer makers such as Dell and HP are also getting in on the act. Their targets are the nearly 60 million households that the Yankee Group, another technology research firm, predicts will own an HDTV set by 2008.

At the Custom Electronic Design & Installation Association trade show in September, jaws dropped at the sight of a mesmerizing Sony rear-projection screen—a 70-inch behemoth that displayed a smooth, film-like image with rich, vibrant colors and superb picture detail.

This kind of technology changes commerce. It will not change life as we know it, but these advances are laying the groundwork for growth in the industries that produce hardware, software and components for HDTV, creating potential opportunities for digitally minded investors.

Capitalists are racing to provide viewers with hours of high-definition content, either by licensing existing movies and shows or by creating entirely new ones. Sony’s acquisition of MGM was partially motivated by the latter’s 4,000-movie library, which is ripe for conversion to HDTV. New services are beginning to sprout to lure more consumers into the HDTV arena. Cablevision’s Voom is the nation’s first all-HDTV satellite service; USDTV is the nation’s first over-the-air HDTV service. Billionaire Mark Cuban has launched HDNet, the first network to broadcast all of its programming in 1080i HD, the highest-quality HDTV format.