More than 47 million American households will be paying for some type of high-definition television (HDTV) service by year’s end, according to a new Pike & Fischer report.

This represents an increase of 17 million homes, compared with year-end 2007, according to “HDTV Service: Market Forecast for Multichannel Video Providers.”

And by year-end 2012, nearly 103 million households will be paying for some form of HD service or rental equipment, the report predicted.

Although the broadcast networks currently air HD programs for free, cable operators, satellite providers and telcos are striving to make money off of the technology by offering HD premium channels, leasing HD-ready equipment, and selling video-on-demand (VOD) movies and TV shows in HD format, the report said.

The demand for HD video will generate up to $2.6 billion in annual revenue for multichannel video providers by the end of 2012, according to the forecast.

"People may decide they'll save more by investing in home entertainment," said Scott Sleek, director of Pike & Fischer's broadband advisory services and principal author of the report. "That way, they can microwave some popcorn and order an HD movie on-demand instead of spending $50 or more to go out for dinner and movie."

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