Televisions - UK - November 2014
Introduction 
 
The popularity of online streaming has seen younger consumers become detached from the television, but not necessarily out of their own choice. Many admit that watching programmes or films on secondary devices such as laptops and tablets is a compromise, and therefore their viewing is likely to return to the larger screen as more consumers acquire smart TVs (which are now becoming a commodity product in this market).

With smart TVs no longer commanding a premium price, manufacturers will be desperately hoping that Ultra HD 4K TVs inject much-needed value into the market. However, the challenges surrounding UK broadcast and broadband infrastructure are limiting the reach of the 4K content, and as a result most consumers are likely to wait before upgrading to the latest picture quality.

This report looks at the different types and the number of TVs that consumers have in their home, as well as in what room these televisions are situated. Next we analyse people’s use of devices for online viewing, as well as their attitudes towards watching TV programmes or films through the internet.

The research also investigates which features of a television have the biggest impact on consumers’ purchasing decisions. Finally we take a look at ownership and interest in the new generation of Ultra HD 4K TVs and the attitudes of consumers who would like to upgrade to the latest picture quality.

Definition 
This report will examine the sales of televisions in the UK. ‘Televisions’ in this context refers to any independent device built explicitly with the purpose of receiving broadcast television signals. Personal computers plugged into an aerial, for example, would not be included within this definition, and are not included in the market size estimates.

A number of types of television are capable of being connected to computers with audio and video cables, and displaying content from the internet accordingly. Other televisions have the ability to connect directly to the internet built into them, and come with customised software designed to facilitate this. This latter category of devices is what is referred to when ‘smart’ or ‘internet-enabled’ televisions are discussed during this report.

‘3D television’ refers to any television with the ability to display three-dimensional (3D) content (whether from a satellite, cable or digital terrestrial TV signal, read from a disc or from an internet source). Some televisions use ‘passive’ glasses to accomplish this, where polarised plastic panes filter the content seen by each eye. Other televisions use ‘active shutter’ glasses, where battery-powered shutters within the glasses are used to the same end effect. Both technologies are covered under discussion of 3D television.

LED-backlit televisions use an advanced form of LCD technology. Within this report these two types of screen (LCD and LED) are treated separately, and therefore the term ‘standard LCD’ refers to those TVs without LED enhancement. 

For the purposes of this report, small-screen TVs are classified as those sized 24” and below, medium TVs are sized 26-31”, and large-screen TVs refer to those sized 32” and above.

The terms 4K and Ultra HD are used interchangeably throughout this report in reference to the next generation of picture quality. Ultra HDTVs are categorised as those that display a horizontal resolution of 4,000 pixels.

Discussion of the ‘main’ television set refers to the television consumers will spend most time with. Normally this is contained in the living room. ‘Secondary’ sets are generally referred to as TVs in kitchens, bedrooms or other rooms.

Exchange rates
Where a manufacturer reports in local currency, the following exchange rates have been used for conversion to pounds Sterling. Where a manufacturer has a non-calendar year-end, the closest calendar year rate has been used.

	2012 	2013 	
South Korean Won (₩) to GBP (£)	0.000577	0.000571	
Japanese Yen (¥) to GBP (£)	0.007103	0.005731	

Crown copyright material is reproduced with the permission of the Controller of HMSO and the Queen’s Printer for Scotland.

Value figures are inclusive of VAT unless stated otherwise.

Abbreviations
3D	Three-Dimensional	
AV	Audio-visual	
BBC	British Broadcasting Corporation	
BDA	Blu-ray Disc Association	
CEO	Chief Executive Officer	
CES	Consumer Electronics Show	
CPI	Consumer Price Index	
CRT	Cathode Ray Tube	
DVD	Digital Video Disc	
EIU	Economist Intelligence Unit	
EST	Energy Saving Trust	
EU	European Union	
FIFA	Fédération Internationale de Football Association	
GBP	British Pound	
GDP	Gross Domestic Product	
GMI	Global Market Insite	
HD	High-definition	
IFA	Internationale Funkausstellung Berlin	
LCD	Liquid Crystal Display	
LED	Light Emitting Diode	
OLED	Organic Light Emitting Diode	
ONS	Office for National Statistics	
NFC	Near Field Communication	
PC	Personal Computer	
PDI	Personal Disposable Income	
RRP	Recommended Retail Price	
SD	Standard-definition	
TV	Television	
UEFA	Union of European Football Associations	
UK	United Kingdom	
US	United States	
VAT	Value Added Tax