Televisions - US - August 2016

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
The issues
Majority of consumers own high-definition televisions
Figure 1: Television ownership, May 2016
Lengthy replacement cycles challenge market revenue
Figure 2: Length of time before TV replacement, May 2016
Competition emerges from online, mobile video
Figure 3: Attitudes toward televisions, by parental status, May 2016
The opportunities
Bigger screens are in demand
Figure 4: Reasons for most recent TV purchase, May 2016
Different marketing strategies for different purchasing motivations
Figure 5: Reasons for most recent TV purchase, by age, May 2016
Connectivity important for 18-34 year olds
Figure 6: Attitudes toward televisions, by gender and age, May 2016
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Television market poised for growth
Little in the way of 4K content
Broadband a key factor for smart televisions
MARKET SIZE AND FORECAST
A break from market stagnation on the horizon
Figure 7: Total US sales and fan chart forecast of televisions, at current prices, 2011-21
MARKET FACTORS 
Lack of 4K content remains a challenge for UHD TV sets
One in ten Americans lack sufficient-quality broadband
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Samsung commands largest share of the television market
Market led by LED screens
OLED lagging in direct mail marketing
WHAT’S WORKING?
Samsung now has largest share of the market
Figure 8: Leading Brands of TV, 2012-2016
LED screens are on the rise
Figure 9: Samsung UHD, curved screen television offer, May 2016
WHAT’S STRUGGLING?
OLED could use a boost from direct mail marketing
Figure 10: Fry’s Electronics OLED 3DTV promotional email, June 2016
WHAT’S NEXT?
The beginning of UHD
There’s a future for virtual reality in TV
THE CONSUMER – WHAT YOU NEED TO KNOW 
Smart TV and 4K segments show plenty of room for growth
LED screens surpass LCD
Larger screens top purchase inspirations
Support for multiple devices and mobile apps important for 18-34s
TELEVISION OWNERSHIP AND PURCHASE INTENT
Televisions – Overview of ownership
Majority of consumers have HDTVs in their households
Figure 11: Television ownership, May 2016
Smart TVs
Near-term opportunity to design for multiple smart TV buyers
Figure 12: Smart TV ownership and purchase intent, by age, May 2016
Target multiple smart TV purchasers in urban areas
Figure 13: Smart TV ownership and purchase intent, by type of living area, May 2016
Smart TV ownership considerably higher among Hispanics
Figure 14: Smart TV ownership and purchase intent, by Hispanic origin, May 2016
Ultra-high definition televisions
UHD TV purchase intent higher among younger consumers, higher income households
Figure 15: UHD TV ownership and purchase intent, by age and household income, May 2016
Brand loyalty important for attracting Black consumers to new technology
Figure 16: UHD TV purchase intent, by race, May 2016
Types of television by screen type
Significant rise in LED ownership since 2012
Figure 17: Types of televisions owned (screen types), 2012-2016
LIFECYCLE OF CONSUMERS’ TELEVISIONS
Long TV replacement cycles present challenges for the market
Figure 18: Length of time before TV replacement, May 2016
Figure 19: Dell television set promotion example – email, June 2016
Older consumers show longer television replacement cycles
Figure 20: Length of time before TV replacement (mean), May 2016
TELEVISION PURCHASING MOTIVATIONS
Consumers seek larger TV screens
Figure 21: Reasons for most recent TV purchase, May 2016
Older consumers wait until they absolutely need a new TV
Figure 22: Reasons for most recent TV purchase, by age, May 2016
Consumers who want higher resolutions also want larger screens
Figure 23: Reasons for most recent TV purchase, by reasons for most recent TV purchase, May 2016
Interest in hardware specifications remains with general desire to upgrade
Figure 24: Reasons for most recent TV purchase, by reasons for most recent TV purchase – just felt like upgrading, May 2016
IMPORTANT FACTORS WHEN PURCHASING TELEVISIONS
Trust in brand ahead of customer reviews in purchase factors
Figure 25: Importance of TV purchase influencers (NET summary), May 2016
Asian consumers less likely to think advertising is important
Figure 26: Importance of television and online advertisements in TV path to purchase, by race, May 2016
Importance of traditional advertising rises with household income
Figure 27: Importance of television and online advertisements in TV path to purchase, by household income, May 2016
CONSUMER BEHAVIORS WHEN PURCHASING NEW TELEVISIONS
Bright future for connected home entertainment
Figure 28: Behaviors when buying televisions, May 2016
Most age groups prioritize screen size
Figure 29: Behaviors when buying televisions, by age, May 2016
Opportunity to promote high-end televisions alongside children’s media devices
Figure 30: Behaviors when buying televisions, by age of children in household, May 2016
Black TV purchasers looking for deals
Figure 31: Behaviors when buying televisions, by race, May 2016
CONSUMERS' ATTITUDES TOWARD TELEVISIONS AND CONNECTED DEVICES
Considerable room to expand in connected media devices market
Figure 32: Attitudes toward televisions, May 2016
Multiple device support a strong engagement incentive for 18-34s
Figure 33: Attitudes toward televisions, by gender and age, May 2016
Parents divided in whether they need a television set
Figure 34: Attitudes toward televisions, by parental status, May 2016
Higher income households show greater need for universal control
Figure 35: Attitudes toward televisions, by household income, May 2016
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Consumer survey data
Consumer qualitative research
Direct marketing creative
Abbreviations and terms
Abbreviations
Terms
APPENDIX – MARKET 
Figure 36: Total US retail sales and forecast of televisions, at current prices, 2011-21
Figure 37: Total US retail sales and forecast of televisions, at inflation-adjusted prices, 2011-21
APPENDIX – CONSUMER 
Figure 38: Types of televisions owned (screen types), 2012-2016
Figure 39: Brands of televisions owned, 2012-2016
Figure 40: Brands of televisions owned, by demographics, February 2015-March 2016 (part 1)
Figure 41: Brands of televisions owned, by demographics, February 2015-March 2016 (part 2)