In the past two years, the term "HDR" has become increasingly popular, but excessive media hype has led to a sense of indifference among consumers. So, what is the current state of HDR's market development? Kendra Chamberlain’s article explores the technical and market applications of HDR. Here's a detailed summary:
When Apple introduced the latest version of Apple TV, CEO Tim Cook described HDR as a technology that "makes the living room magical." Although High Dynamic Range (HDR) imaging technology has been around for several years, Apple's recent announcement marks a significant milestone: HDR has finally entered the mainstream.
Since 2016, consumers have had access to both HDR content and devices. Ian Nock, a senior analyst at Fairmile West Consulting, humorously divides HDR history into two parts: before and after the 2016 CES. At that event, most TV brands launched new 4K HDR TVs, along with other products supporting HDR.
David Mercer, an analyst at Strategy Analytics, predicts that nearly 5% of North American households will own HDR TVs this year. However, he notes that from a true coverage perspective, HDR television is still in its early stages. “We are still at the beginning of the innovation adoption curve,†he said.
Despite receiving more industrial support than 4K, the HDR ecosystem still faces many challenges. One major issue is consumer confusion. As awareness of HDR grows, so does the complexity of the market. From TV manufacturers' marketing to end-to-end solution providers and confusing certification labels, consumers find it difficult to understand which products truly support HDR.
Paul Gagnon, head of TV research at IHS Markit, explained that the industry chain puzzle remains complex for consumers. Even if you have an HDR TV, an HDR source device like a Blu-ray player or Apple TV, and HDR content from Netflix or Blu-ray, there's no guarantee you'll see HDR quality.
The confusion stems largely from unclear terminology. HDR is used to describe video production formats, encoding standards, decoding capabilities, and display performance, not to mention the various patented solutions emerging in the market.
For example, while HDR TV coverage is increasing, not all HDR TVs can actually display HDR content. Gagnon noted, “This doesn’t mean the display itself can fully render HDR. The actual brightness output varies. A low-end HDR TV may only have a peak brightness of 300 nits, which is not much better than today’s non-HDR TVs.â€
To address these concerns, the UHD Alliance introduced the Ultra HD Premium certification, which supports the open HDR10 standard. However, not all manufacturers have certified their products, and many still use the term "HDR" in their marketing.
Further confusion comes from end-to-end HDR solutions like Dolby Vision and Samsung HDR10+. While they meet the basic HDR10 standard, they aim to provide a better viewing experience. To fully enjoy these solutions, every part of the ecosystem must support them—something that remains a challenge for consumers.
Although these solutions are heavily marketed, their market coverage is still unclear. Nock said, “We still don’t know how many different TVs and set-top boxes support these technologies.†For instance, Dolby Vision may target high-end equipment rather than the mass market.
OTT services are leading the way in HDR content delivery. Due to easier infrastructure upgrades, digital players have an advantage, and OTT devices are the first to support HDR. In 2016, Roku launched the first HDR streaming media player, Sony added HDR support to the PS4, and Microsoft released the Xbox One S with HDR. The first HDR Blu-ray player also debuted late that year.
As new HDR streaming devices hit the market, online video providers began offering HDR content. Amazon launched its first HDR series, "Mozart in the Jungle," in late 2015, followed by Netflix a few months later. These services now offer HDR content directly on new HDR TVs.
Traditional content providers are also testing HDR. Studios, broadcasters, and distributors are excited about the technology, seeing it as a major enhancement for visual performance over the next five to ten years. Studios have begun releasing high-end HDR home entertainment titles, such as 21st Century Fox’s "Mars Rescue" and "The Fantasy Rafting of the Juveniles."
Broadcasters and service providers are still figuring out which HDR format to support. Two main camps exist: Perceptual Quantizer (PQ) and Hybrid Log Gamma (HLG). HDR10, Dolby Vision, and HDR10+ are based on PQ, while HLG, developed by BBC and NHK, is favored by broadcasters for its ability to send a single signal that works for both HDR and SDR devices.
Experts agree that linear broadcasting won't adopt HDR soon. While HLG is gaining traction, its implementation is still limited. Nock said, “There’s a lot of uncertainty about when plans will launch.†However, 2018 is expected to bring more clarity, especially in Europe and the U.S.
So far, only two U.S. service providers—Comcast and AT&T’s DirecTV—have announced HDR plans. Comcast, a leader in pay TV, first announced an HDR set-top box in 2016, though delays due to 10-bit HEVC integration pushed the launch. They hope to release a 4K HDR set-top box during the 2018 Winter Olympics. DirecTV also aims for a 2018 launch, but details remain scarce.
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