Table of Contents
Scopes and Themes
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- What you need to know
- Definition
- Data
- Abbreviations
- Terms
Executive Summary
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- LCD sales driving overall category growth
- Increase of time spent on the internet could dampen sales
- Cheaper sets, tendency to stay home and new technology drive growth
- Samsung, Sony and Vizio lead in LCD sales
- Brand has little influence on most customers
- Consumers’ knowledge of television technology is low
- Blacks and Asians are important groups
- Certain segments are more knowledgeable and willing to pay premiums
Insights and Opportunities
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- Dynamic pricing
- Value created via reliability
- Objectivity
- Style counts
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- Figure 1: Interest in TV wall mounting and premium frames, by household income, August 2008
- Figure 2: Interest in TV wall mounting and premium frames, by date of most recent purchase, August 2008
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- Figure 3: Levels of interest in TV wall mounting, by age, August 2008
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- Figure 4: Levels of interest in paying more for a stylish TV frame, by age, August 2008
- Screening rooms
- Trade-ins
- Background video: artwork, personal photos and videos
- Interactive, educational advertainment
- Up-conversion and content partnerships
- Green living
- The CPU/TV single-chassis media center
Fast Forward Trends
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- Trend 1: The Sci-Fi Era
- 3DTV
- The Jetson’s videophone
- Trend 2: The Death and Rebirth of Retail
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- Figure 6: Online TV purchase, date of most recent purchase of television, August 2008
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- Figure 7: Online TV purchase, by household income, August 2008
Market Size and Forecast
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- Retail prices average more than $1K in 2007 as HDTVs gain traction
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- Figure 8: Screen size and spend on most recent TV purchase, by acquisition date, February 2007-March 2008
- Television sales continue to climb despite tough economy
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- Figure 9: U.S. manufacturer sales of TV sets and displays, at current prices, 2004-09
- Figure 10: U.S. manufacturer sales of TV sets and displays, at inflation-adjusted prices*, 2004-09
- Increase in volume driving sales
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- Figure 11: Total U.S. manufacturer volume sales and average selling price of TV sets and displays, 2004-09
- A television in every room
Competitive Context
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- Key points
- Pay-TV service and digital-analog converters to compete with DTVs
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- Figure 12: Access to cable/satellite television, by number of TVs in the household, April 2007-June 2008
- Online video not a problem… yet
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- Figure 13: U.S. online video viewers, 2006-12
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- Figure 14: Hours spent per week using television screens, by willingness to spend $1K+ on TV screen, August 2008
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- Figure 15: Hours spent per week using television screens, by intent to purchase, August 2008
- Figure 16: Hours spent per week using television screens, by date of most recent purchase, August 2008
Segment Performance
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- LCD sales driving overall category growth
- LCDs carry more than half of sales as prices on LCD units fall
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- Figure 17: U.S. manufacturer sales of digital TV sets and displays, by segment, 2004-09
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- Figure 18: U.S. sales of digital TV sets and displays, by segment, 2005 and 2007*
- Figure 19: Most recent TV type purchased, by acquisition date of most recent TV, February 2007-March 2008
Segment Performance—LCD Televisions
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- LCD sales growth, from meteoric to strong
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- Figure 20: Total manufacturer sales of LCD flat-panel TVs, at current prices, 2004-12
- Figure 21: Total manufacturer sales of LCD flat-panel TVs, at inflation-adjusted prices, 2004-12
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- Figure 22: U.S. volume sales and average selling price of LCD flat panel, 2004-09
Segment Performance—Plasma Televisions
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- Plasma not competitive in under-40-inch arena
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- Figure 23: Total manufacturer sales of plasma flat-panel TVs, at current prices, 2004-09
- Figure 24: Total manufacturer sales of plasma flat-panel TVs, at inflation-adjusted prices, 2004-09
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- Figure 25: U.S. volume sales and average selling price of plasma flat-panel TVs, 2004-09
Segment Performance—Front-projection TVs
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- Most consumers have no experience with front-projection television
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- Figure 26: Have watched a front-projection TV, by age, August 2008
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- Figure 27: Total manufacturer sales of front-projection TVs, at current prices, 2004-09
- Figure 28: Total manufacturer sales of front-projection TVs, at inflation-adjusted prices, 2004-09
- Figure 29: U.S. volume sales and average selling price of front-projection TVs, 2004-09
Segment Performance—Rear-projection Televisions
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- Figure 30: Interest in wall mounting for televisions, by age, August 2008
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- Figure 31: Total manufacturer sales of digital rear-projection TVs, at current prices, 2004-09
- Figure 32: Total manufacturer sales of digital rear-projection TVs, at inflation-adjusted prices, 2004-09
- Figure 33: U.S. volume sales and average selling price of digital rear-projection TVs, 2004-09
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Segment Performance—OLED Televisions
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- Organic televisions promise more energy efficiency and superior picture
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- Figure 34: U.S. manufacturer sales of OLED displays, at current prices, 2008 and 2009
Segment Performance—Playback combination TVs
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- Figure 35: Preference for TV with built-in DVD player/recorder, by age, August 2008
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- Figure 36: Total manufacturer sales of digital playback/television products, at current prices, 2005-08
- Figure 37: Total manufacturer sales of combination TVs, at inflation-adjusted prices, 2005-08
- Figure 38: U.S. volume sales and average selling price of combination TVs, 2005-08
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Market Drivers
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- Key points
- Broken sets, bedroom TVs and the desire to upgrade drive purchase
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- Figure 39: Reasons for TV purchase, by household income, August 2008
- Millions of tube televisions yet to be replaced
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- Figure 40: Type of most recent TV type purchased, by household income, February 2007-March 2008
- TV when you want it
- DVRs
- VOD
- Transition to digital broadcasting
- HDTV content
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- Figure 41: Total manufacturer sales of HDTVs, at current prices, 2004-09
- Challenging economic conditions may be helping sales
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- Figure 42: Buyers’ remorse over small screen size, by age, August 2008
- Television as a social experience
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- Figure 43: Social use of the television, by age, August 2008
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- Figure 44: Social use of the television, by date of most recent purchase, August 2008
- Demographics and economics
- Focus on 35-64s
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- Figure 45: Cost of most recently acquired TV, by age, February 2007-March 2008
- Figure 46: Primary shopper for TVs, by age, August 2008
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- Figure 47: Household TV ownership, overall incidence and # per household, by age, February 2007-March 2008
- Household income predictive of spend
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- Figure 48: Willingness to spend more than $1K+ on a television, by household income, August 2008
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- Figure 49: Cost, age and size of most recent TV, by household income, February 2007-March 2008
Leading Companies
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- Key points
- Market consolidating, budget provider Vizio gaining
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- Figure 50: North American LCD market share by volume of units shipped, by manufacturer, Q1 2007-Q1 2008
- Samsung
- Sony
- Vizio
- Sharp
Brand Qualities
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- Key points
- Only one in six see a difference between leading brands
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- Figure 51: Perceived differences in quality of TV between leading brands, by age, August 2008
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- Figure 52: Perceived differences in quality of TV between leading brands, by household income, August 2008
- One in three will buy an unknown brand to save money
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- Figure 53: Buying an unknown TV brand to save $200, by household income, August 2008
- If price is not a concern, many choose Sony
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- Figure 54: Brand preference in the absence of price premiums, by household income, August 2008
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- Figure 55: Brand preference in the absence of price premiums, by age, August 2008
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- Figure 56: Brand preference in the absence of price premiums, by year of most recent purchase, August 2008
- Vizio is for value
- Samsung is for sports
- Sony touts its high-end range
- Sharp enabling wireless picture viewing
Innovation and Innovators: Focus on PC2TV
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- Introduction
- Uptake ramping up in under-35s
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- Figure 57: Ownership of device for watching online video on the home television, by age, January 2008
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- Figure 58: Interest in complete “on-demand” programming, by age, January 2008
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- Figure 59: Interest in viewing online video on the home TV, by age, January 2008
- Sony’s BRAVIA Internet Video Link
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- Figure 60: Sony BRAVIA Video link
- Netflix connects directly to televisions
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- Figure 61: Netflix set-top boxes from Roku and LG
- Apple TV
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- Figure 62: Apple TV
- Vudu
Television Campaigns
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- Introduction
- Focusing on sports and gaming with faster LCDs
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- Figure 63: TV used to invite friends and family over for sports, by date of most recent purchase, August 2008
- Samsung’s pitch to sports enthusiasts
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- Figure 64: Samsung NFL ad, 2007
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- Figure 65: Samsung NFL Super Bowl promotional price ad, 2008
- Variations on the sports theme: Sharp, Sony and Olevia
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- Figure 66: Sharp Aquos—official HDTV of the baseball league ad, 2008
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- Figure 67: Sony’s sports ad, 2008
- Figure 68: Olevia’s ESPN ad, 2007
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- Figure 69: Olevia’s X Games ad, 2008
- Pitching style
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- Figure 70: Samsung series 6 ad, 2008
- A picture so precise, it seems real
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- Figure 71: LG Family bobsleigh ad, 2007
- It’s a family affair
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- Figure 72: Panasonic Viera ad, 2007
Product Knowledge
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- Key points
- Half of respondents still think digital and HD are the same thing
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- Figure 73: Understanding of TV technology, by household income and primary shopper, August 2008
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- Figure 74: Understanding of TV technology, by date of most recent purchase and primary shopper, August 2008
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- Figure 75: HDTV access and awareness, by household income, August 2008
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- Figure 76: HDTV access and knoweldge, by date of most recent purchase and primary shopper, August 2008
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- Figure 77: Blu-ray disc ownership, by date of most recent TV purchase and primary shopper, August 2008
Attitudes toward Spend
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- Figure 78: TV purchase price-sensitivity, by date of most recent purchase, August 2008
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- Figure 79: TV purchase price-sensitivity, by age, August 2008
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The Research Process
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- Key points
- In-store research favored even by internet consumers
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- Figure 80: Methods of research before TV purchase, by household income, August 2008
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- Figure 81: Methods of research before TV purchase, by willingness to spend $1K+, August 2008
- Under-45s do more research
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- Figure 82: Methods of research before TV purchase, by age, August 2008
- Research growing in importance as recent buyers do more research
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- Figure 83: Methods of research before purchase, by year of most recent purchase, August 2008
- Third-party review sites to become more important
- Cnet.com
- Testfreaks.com
- TVsreview.com
- Consumersearch.com
- Educational materials on supplier and retailer sites
- Sony.com: Home entertainment 101
- Rca.com: The room planner
- Circuitcity.com: Educating consumers about technology
- Best Buy: bestbuy.com: Teaching people how to build a home entertainment system
- Walmart.com: Teaching people how to build a home entertainment system
Race/Hispanic Origin: Focus on Asians and Blacks
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- Key points
- Average income by race/Hispanic origin
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- Figure 84: Household income distribution, by race and Hispanic origin of householder, 2007
- Asians over-index on flat-panel TVs
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- Figure 85: Most recent TV type owned, by race/Hispanic origin, February 2007-March 2008
- Blacks spend the most time watching television, particularly sports
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- Figure 86: Hours spent per week using television screens, by race/Hispanic origin, August 2008
- Asians pay premium prices for high-end flat-panel TVs
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- Figure 87: TV features, by race/Hispanic origin, February 2007-March 2008
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- Figure 88: Reasons for TV purchase, by race/Hispanic origin, August 2008
- Asians more brand-conscious and more keen on Sony and Samsung
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- Figure 89: Effect of brand on purchase of similar models, by race/Hispanic origin, August 2008
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- Figure 90: Brand reputation, by race/Hispanic origin, August 2008
- Minorities online more willing to pay premium for TV/PC monitor
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- Figure 91: Willingness to pay more for a TV with PC connectivity, by race/Hispanic origin, August 2008
- Minorities more likely to use the TV to entertain friends
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- Figure 92: TV used to invite friends and family over for sports, by race/Hispanic origin, August 2008
Cluster Analysis
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- Key points
- Low-budget basics (48%)
- Moderates (34%)
- Tech-savvy enthusiasts (18%)
- Cluster characteristics
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- Figure 93: Television owner clusters, August 2008
- Figure 94: Television usage per week, by clusters, August 2008
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- Figure 95: Expected time until the purchase of a new TV, by clusters, August 2008
- Figure 96: Years since household bought last new television, by clusters, August 2008
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- Figure 97: Reasons for TV purchase, by clusters, August 2008
- Figure 98: Attitudes about one’s personal television set, by clusters, August 2008
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- Figure 99: Attitudes about televisions, by clusters, August 2008
- Figure 100: TV purchase research, by clusters, August 2008
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- Figure 101: Brand preference, by clusters, August 2008
- Cluster demographics
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- Figure 102: Television owner clusters, by gender, August 2008
- Figure 103: Television owner clusters, by age, August 2008
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- Figure 104: Television owner clusters, by household income, August 2008
- Figure 105: Television owner clusters, by race/Hispanic origin, August 2008
- Methodology
Custom Consumer Groups
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- Key points
- Purchase motivations changing rapidly
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- Figure 106: Reasons for getting a new television, by year of most recent purchase, August 2008
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- Figure 107: Reasons for getting a new television, by willingness to spend $1K+, August 2008
- Capturing the high-end buyer
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- Figure 108: Tendency to invite friends to watch set and importance of Blu-ray, HDTV and style, by willingness to spend $1K+, August 2008
- Anticipating the desires of this year’s Christmas TV shoppers
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- Figure 109: Preferences and attitudes, by expected date of next television purchase, August 2008
- Asians/affluent couples spend the most
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- Figure 110: Average cost of most recent TV, by key affluent couples and Asian groups, February 2007-March 2008
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- Figure 111: Average number of years ago when most recent TV set was acquired, by most recently purchasing custom consumer group, February 2007-March 2008
Appendix: Additional Race/Hispanic Origin Tables
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- Figure 112: Attitudes about TV and price (in general), by race/Hispanic origin, August 2008
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- Figure 113: Years since household bought last new television, by race/Hispanic origin, August 2008
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- Figure 114: Expected time until the purchase of a new TV, by race/Hispanic origin, August 2008
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- Figure 115: Method for researching TV before purchase, by race/Hispanic origin, August 2008
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- Figure 116: Reasons for TV purchase, by race/Hispanic origin, August 2008
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- Figure 117: Social use of TV, by race/Hispanic origin, August 2008
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Appendix: Additional Responses by Age
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- Figure 118: Reasons for TV purchase, by age, August 2008
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- Figure 119: Reasons for TV purchase, by age, August 2008
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- Figure 120: Years since household bought last new television, by age, August 2008
- Figure 121: Reasons for TV purchase, by age, August 2008
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- Figure 122: Reasons for TV purchase, by age, August 2008
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Appendix: Additional Responses about TV Features
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- Figure 123: TV features, by age, February 2007-March 2008
- Figure 124: TV features, by race/Hispanic origin, February 2007-March 2008
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- Figure 125: TV features, by household income, February 2007-March 2008
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Appendix: Trade Associations
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