The native resolution of a HDTV is set in the hardware, therefore you see TVs whose native screen resolution is either 720p or 1080p/i.
Most broadcasts (TV programs) are broadcast in 720p so a TV whose native resolution is 720p needs to do nothing to the data except display it. However if it has to process full HD (1080p), from a DVD for example, it has to convert (or process) it to display the picture. A TV whose native resolution is 1080p has to up-scale a 720 broadcast to 1080p, but need do nothing with a 1080p picture other than display it.
The conversion process can degrade the quality of the picture, so a 720p broadcast could look great on a 720p TV and not so good 1080p TV. The other factor that can determine the quality after it is processed is the quality of the hardware (TV) doing the processing.
Ask yourself what do I watch more - TV Broadcasts in HD or DVD's? To help you decide, if you watch DVD/BluRay mostly then a 1080p TV would be your possible choice. If is HD TV Broadcasts, then a 720p would suffice.
There are a few TV Broadcasters who broadcast 1080i (interlaced) so both types of TVs would have to convert from “i” (interlaced) to “p” (progressive), however the 720p would downgrade the picture in order to convert it from 1080i to 720p and also de-interlace it.
In conclusion
HD or high definition says it all - quality! Until HD TV came along the picture quality was OK, but far from crisp. The available resolutions were 480(vertical lines) x 704(horizontal lines) or 480(vertical lines) x 640(horizontal lines).
With the invention of HD (high definition) the number of lines of information increased giving more definition - 720 (vertical lines) x 1280 horizontal lines) or 1080 (vertical lines) x 1920 horizontal lines).
With the increased lines of information more data or detail can be sent, thus giving a far better picture quality.
For those who want more information on this subject please click HDTV Resolution.
You might be interested in this question from our visitors: How to choose which TVs resolution is best
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