Televisions - UK - September 2018

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Portable device viewing is hitting television volume sales
Figure 1: Volume of the UK television market, 2013-23
TV viewing time continues to decline
Figure 2: Average daily minutes of TV viewing, 2010-17
Companies and brands
Samsung unveils ‘The Wall’ at CES 2018
Above-the-line growth driven by digital spend
Figure 3: Recorded above-the-line, online display and direct mail total advertising expenditure on televisions, by media type, 2015-17
The consumer
‘Big four’ manufacturers account for three quarters of main screens
Figure 4: Brand of TVs in the household and brand of the main TV in the household, June 2018
Consistent rise in the number of households with just one television
Figure 5: Number of televisions in the household, 2016-18
Ultra HD 4K sets begin to erode HD’s share
Figure 6: Types of TVs in the household, June 2018
Nearly half of people have owned their TV over three years
Figure 7: Age of main television set, June 2018
Half of people pay under £500 for their main television
Figure 8: Cost of main television, June 2018
Seven in 10 people would be motivated to upgrade to 4K by price discounts
Figure 9: Upgrading to 4K Ultra HD, June 2018
Three quarters of people only replace the main TV when it breaks
Figure 10: Attitudes towards television replacement, June 2018
Over half of 16-34-year-olds would use the main TV as a smart hub…
…while four in 10 would like to use voice assistant technology on the TV
Figure 11: Attitudes towards television innovation, June 2018
What we think
ISSUES AND INSIGHTS
Will Ultra HD 4K replicate the success of HD television?
The facts
The implications
The future of the main television set
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Portable device viewing is hitting television volume sales
Boost from World Cup sales will not prevent further decline market value
Retailers look to World Cup discounting to drive 4K upgrades
TV viewing time continues to decline
Over seven in 10 people have an internet-connected TV
MARKET SIZE AND FORECAST
Portable device viewing is hitting television volume sales
Figure 12: Volume of the UK television market, 2013-23
Figure 13: Volume of the UK television market, 2013-23
Boost from World Cup sales will not prevent further decline market value
Figure 14: Value of the UK television market, 2012-22
Figure 15: Value of the UK television market, 2013-23
Forecast methodology
MARKET DRIVERS
Retailers look to World Cup discounting to drive 4K upgrades
Argos launches augmented reality feature to aid TV buying
Upgraded video games consoles pushing 4K screens
TV viewing time continues to decline
Figure 16: Average daily minutes of TV viewing, 2010-17
Over seven in 10 people have an internet-connected TV
Figure 17: Television connectivity, June 2017-April 2018
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Samsung unveils ‘The Wall’ at CES 2018
LG previews wallpaper TV and updates W8 Signature range
Samsung launches ambient mode for 2018 flagship Q9F range
Above-the-line growth driven by digital spend
Leading three manufacturers account for over 69% of advertising spend
Samsung seen as the highest quality and most innovative brand
LAUNCH ACTIVITY AND INNOVATION
Samsung unveils ‘The Wall’ at CES 2018
Figure 18: Samsung’s The Wall
LG previews wallpaper TV and updates W8 Signature range
Hisense looks to develop the 4K projector market
Samsung launches ambient mode for 2018 flagship Q9F range
Figure 19: Samsung’s ambient mode on the 2018 Q9F range
ADVERTISING AND MARKETING ACTIVITY
Above-the-line growth driven by digital spend
Figure 20: Recorded above-the-line, online display and direct mail total advertising expenditure on televisions, by media type, 2015-17
Figure 21: Recorded above-the-line, online display and direct mail total advertising expenditure on televisions, by media type, 2016 and 2017
Leading three manufacturers account for over 69% of advertising spend
Figure 22: Recorded above-the-line, online display and direct mail total advertising expenditure on televisions, by advertiser, 2015-17
Nielsen Ad Intel coverage
BRAND RESEARCH
Brand map
Figure 23: Attitudes towards and usage of selected brands, July 2018
Key brand metrics
Figure 24: Key metrics for selected brands, July 2018
Brand attitudes: Samsung and Sony are the most differentiated brands people will pay more for
Figure 25: Attitudes, by brand, July 2018
Brand personality: Cross-category success in smartphones drives Samsung’s fun brand image
Figure 26: Brand personality – macro image, July 2018
Toshiba, Panasonic and Philips are deemed more affordable yet still reliable
Figure 27: Brand personality – micro image, July 2018
Brand analysis
Samsung seen as the highest quality and most innovative brand
Figure 28: User profile of Samsung, July 2018
Sony’s upbeat fun image boosted by video games market
Figure 29: User profile of Sony, July 2018
LG struggles to match the differentiation of Samsung and Sony
Figure 30: User profile of LG, July 2018
Panasonic struggling to maintain high usage rates
Figure 31: User profile of Panasonic, July 2018
Philips deemed the least exclusive of the brands analysed
Figure 32: User profile of Philips, July 2018
Toshiba viewed as an affordable, reliable option but lacks exclusivity
Figure 33: User profile of Toshiba, July 2018
Chinese manufacturer Hisense lacking awareness but has strong potential
Figure 34: User profile of Hisense, July 2018
THE CONSUMER – WHAT YOU NEED TO KNOW
Big four manufacturers account for three quarters of main screens
Consistent rise in the number of households with just one television
Ultra HD 4K sets begin to erode HD’s share
Nearly half of people have owned their TV over three years
Half of people pay under £500 for their main television
Seven in 10 people would be motivated to upgrade to 4K by price discounts
Three quarters of people only replace the main TV when it breaks
Nearly half of people would buy a larger television next time
Over half of 16-34-year-olds would use the main TV as a smart hub
TELEVISION BRAND OWNERSHIP
Big four manufacturers account for three quarters of main screens
Figure 35: Brand of TVs in the household and brand of the main TV in the household, June 2018
Samsung is the most owned brand in every age group
Figure 36: Ownership of big four television brands, by age, June 2018
Big four manufacturers focused on pushing 4K adoption
Figure 37: Leading brands of TVs in the household, by Ultra HD 4K ownership, June 2018
TELEVISIONS IN THE HOME
Consistent rise in the number of households with just one television
Figure 38: Number of televisions in the household, 2016-18
Ultra HD 4K sets begin to erode HD’s share
Figure 39: Types of TVs in the household, June 2018
One in five 25-34-year-olds have a 4K television
Figure 40: Main TV set resolution, by age, June 2018
Technologically engaged 4K owners more likely to have multiple televisions
Figure 41: Number of televisions in the household, by types of TVs in the household, June 2018
The vast majority of people watch video away from the main television…
…but less than three in 10 watch on a television in another room
Figure 42: Viewing away from the main TV, June 2018
Younger demographics viewing on portable devices is limiting demand for televisions
Figure 43: Viewing away from the main TV, by age, June 2018
LENGTH OF OWNERSHIP AND COST OF TELEVISIONS
Nearly half of people have owned their TV over three years
Figure 44: Age of main television set, June 2018
Half of people pay under £500 for their main television
Figure 45: Cost of main television, June 2018
25-34s most likely to spend over £1,000 on their main television
Figure 46: Cost of main television, by Age, June 2018
UPGRADING TO ULTRA HD 4K
Can 4K Ultra HD replicate the success of HD?
Seven in 10 people would be motivated to upgrade to 4K by price discounts
Free trials and trade-ins could boost 4K take-up
Figure 47: Motivations for upgrading to 4K Ultra HD, June 2018
Men are keener for deals that showcase 4K content
The biggest market for smaller 4K screens is amongst 16-24-year-olds
Figure 48: Motivations for upgrading to 4K Ultra HD, by age, June 2018
Price is by far the most important factor when upgrading to 4K
Figure 49: TURF Analysis – Factors encouraging the purchase of a 4K TV, June 2018
ATTITUDES TOWARDS TELEVISIONS
Three quarters of people only replace the main TV when it breaks
Nearly half of people would buy a larger television next time
There is little brand loyalty in the television market
Figure 50: Attitudes towards television replacement, June 2018
Over half of 16-34-year-olds would use the main TV as a smart hub…
…while four in 10 would like to use voice assistant technology
Figure 51: Attitudes towards television innovation, June 2018
Seven in 10 aged 16-34 who paid £500+ for their TV are interested in using it as a smart hub
Figure 52: Target group for smart hub TVs – CHAID – Tree output, June 2018
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
Market size and forecast
Fan chart forecast
Value
Figure 53: Best- and worst-case forecast for the value of the UK television market, 2018-23
Volume
Figure 54: Best- and worst-case forecast for the volume of the UK television market, 2018-23
Brand research
Brand map
CHAID analysis - Methodology
Figure 55: Target group for smart hub TVs – CHAID – Table output, June 2018
TURF Analysis – Methodology
Figure 56: Table - TURF Analysis – Factors encouraging the purchase of a 4K TV, June 2018