Televisions - UK - November 2014

INTRODUCTION
Definition
Exchange rates
Abbreviations
EXECUTIVE SUMMARY
The market
Value forecast
Figure 1: Value forecast of UK television sales, 2009-19
Segment performance
Most TVs sold in 2014 will be smart
Figure 2: Share of television volume sales, by smart technology, 2012-14
Companies, brands and innovations
Market share
Figure 3: Volume share of television sales, by brand, 2012 and 2013
The consumer
Smart TVs now in a quarter of homes
Figure 4: Household ownership of televisions, by television type, August 2014
Some 35% of TV owners still have three or more sets at home
Figure 5: Number of televisions in the home, June 2013 and August 2014
Smart TVs yet to establish a presence in secondary rooms
Figure 6: Household ownership of televisions, by room, August 2014
Smart TVs will transform online viewing patterns
Figure 7: Devices used to watch TV programmes and films via stream or download, August 2014
A quarter of online viewers switch to secondary devices due to lack of direct access
Figure 8: Attitudes towards online viewing and televisions in the home, August 2014
Picture quality is still key for consumers
Figure 9: Purchasing influences, August 2014
Two fifths of TV owners interested in upgrading to 4K
Figure 10: Ownership and interest in Ultra HD 4K TVs, August 2014
Ultra HD adoption will be dependent on compatible content
Figure 11: Attitudes towards 4K TVs, August 2014
What we think
ISSUES AND INSIGHTS
In light of the lack of 4K content, how can brands drive sales of Ultra HD TVs?
The facts
The implications
Will young consumers discard their televisions as viewing moves online?
The facts
The implications
TREND APPLICATION
Trend: The Nouveau Poor
Trend: Green and Lean
Mintel Futures: Access Anything, Anywhere
MARKET DRIVERS
Key points
Less than one in 10 spending spare cash on home electronics
Figure 12: Trends in what consumers’ extra money is spent on, September 2013-September 2014
Average price of AV products fell in 2013
Figure 13: Annual consumer prices inflation, 2013
TV market reaps the rewards of the football once again
EU legislation sees energy saving become a hot topic
Watching TV still the ‘most missed’ media activity…
Figure 14: Media activity that consumers would miss the most if it were taken away, 2007-13
…however, only half of 16-24s’ viewing time involves watching live TV
Figure 15: Proportion of watching activities, by age, 2014
Consumers more than twice as likely to have access to a tablet than a smart TV
Figure 16: Household ownership of computers and smart TVs, January 2012-June 2014
Broadband and broadcast infrastructure not up to speed in time for 4K
WHO’S INNOVATING?
Key points
Curved TVs give premium designs a new angle
Figure 17: LG’s 77” curved OLED TV, unveiled at the IFA exhibition in September 2014
The race to deliver 4K content is on
Smart partnerships give brands standout features
Dolby crosses the AV line
MARKET SIZE AND FORECAST
Key points
Value of Ultra HD TVs to offset falling demand
Figure 18: Total value and volume of television sales, 2009-19
Figure 19: Average selling price of televisions in the UK, 2009-19
Forecast
Value
Figure 20: Value forecast of UK television sales, 2009-19
Volume
Figure 21: Volume forecast of UK television sales, 2009-19
Forecast methodology
SEGMENT PERFORMANCE
Key points
LED screens set to wipe out plasma and standard LCDs
Figure 22: Volume sales of televisions, by display type, 2011-13
Figure 23: Share of television volume sales, by type of set, 2011-13
Most TVs sold in 2014 will be smart
Figure 24: Share of television volume sales, by smart technology, 2012-14
Figure 25: Proportion of large-screen TVs (32”+) on the Currys website that feature smart technology, February 2013-October 2014
MARKET SHARE
Key points
South Korean giants appear set for further domination
Figure 26: Volume share of television sales, by brand, 2009-13
COMPANIES AND PRODUCTS
Key points
LG Electronics
Company overview
Products and recent activity
Figure 27: LG’s 77” curved OLED TV, unveiled at the IFA exhibition in September 2014
Financial performance
Figure 28: LG Electronics key financials, 2012 and 2013
Strategy
Panasonic Corporation
Company overview
Products and recent activity
Financial performance
Figure 29: Panasonic Corporation key financials, 2012/13 and 2013/14
Strategy
Samsung Electronics
Company overview
Products and recent activity
Financial performance
Figure 30: Key financials for Samsung Electronics and consolidated subsidiaries, 2012 and 2013
Strategy
Sony Corporation
Company overview
Products and recent activity
Figure 31: Sony’s S9 curved Ultra HD 4K TV, launched 2014
Financial performance
Figure 32: Key financials for Sony Corporation and consolidated subsidiaries, 2012/13 and 2013/14
Strategy
BRAND COMMUNICATION AND PROMOTION
Key points
Adspend steadies in preparation for Ultra HD launch
Figure 33: Advertising expenditure on televisions, 2010-13
Samsung ahead of the curve
THE CONSUMER – TVS IN THE HOME
Key points
Smart TVs now in a quarter of homes…
Figure 34: Household ownership of televisions, by television type, August 2014
…but 3D lags behind
The financial divide – tighter budgets have restricted the reach of smart and 3DTVs
Figure 35: Household ownership of televisions, by financial situation, August 2014
More than a third still have three or more sets at home
Figure 36: Number of televisions in the home, June 2013 and August 2014
Smart TVs yet to establish a presence in secondary rooms
Figure 37: Household ownership of televisions, by room, August 2014
THE CONSUMER – ONLINE VIEWING
Key points
Smart TVs will transform online viewing patterns
Figure 38: Devices used to watch TV programmes and films via stream or download, August 2014
Millennials – a generation divorced from linear TV
Figure 39: Devices used to watch TV programmes and films via stream or download, by age, August 2014
A quarter of online viewers switch to secondary devices due to lack of direct access
Figure 40: Attitudes towards online viewing and televisions in the home, August 2014
THE CONSUMER – PURCHASING INFLUENCES
Key points
Picture quality is still key for consumers
Figure 41: Purchasing influences, August 2014
Demonstrating the cost saving of A+ energy-rated TVs would interest over-65s
Figure 42: Purchasing influences, by age, August 2014
Trade in 1080p for 4K campaign could spark interest
THE CONSUMER – 4K TVS
Key points
Two fifths of TV owners interested in upgrading to 4K
Figure 43: Ownership and interest in Ultra HD 4K TVs, August 2014
Half of parents interested in acquiring 4K TVs
Figure 44: Interest in Ultra HD 4K TVs, by parental status, August 2014
Ultra HD adoption will be dependent on compatible content
Figure 45: Attitudes towards 4K TVs, August 2014
Men more engaged, but still unlikely to upgrade purely for 4K
Figure 46: Attitudes towards 4K TVs, by gender, August 2014
APPENDIX – MARKET SIZE AND FORECAST
Figure 47: Best- and worst-case value forecast of UK television sales, 2014-19
Figure 48: Best- and worst-case volume forecast of UK television sales, 2014-19