Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- LCD flat panels dominate TV market
- Time spent on TV faces challenges from internet and box office
- Dramatic price decreases drive mainstream adoption of flat panels
- Manufacturers look to 3D and TV apps for premium
- Rise of disruptive technology shuffles brand dominance
- CE chains and mass merchandisers are key strategic channels
- Leading brands further segment the under-45 demographic
- Innovations focus on improving 3DTV and TV apps
- Household income is greatest determinant of flat-panel ownership
- Decision-makers see less differentiation among brands
- Picture quality more of an issue for under-35s and the family demographic
- Significant minority will buy an unfamiliar brand to save money
- Interest in paying for extra TV functionality is low
Insights and Opportunities
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- Upgrades around the house are a large component of demand
- Green positioning makes premium price points easier to swallow
- Dads are more receptive to TV product marketing
Inspire Insights
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- Trend—That’s (Home) Entertainment!
Market Size and Forecast
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- Future growth rests on adoption of higher-margin technologies
- Sales and forecast
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- Figure 1: U.S. factory sales and forecast of televisions, at current prices, 2006-12
- Figure 2: U.S. factory sales and forecast of televisions, at inflation-adjusted prices, 2006-12
Market Drivers
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- Price promotions trump slump in consumer confidence
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- Figure 3: Changes in unit price and unit volume of LCD and plasma flat-panel TVs, 2007-10
- Cautious consumers looking for low-cost upgrades
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- Figure 4: Characteristics of televisions owned, 2006-10
- 3D technology fails to inspire new purchases
- Lack of content
- Internet-based TV apps expand functionality
- End of analog transmission makes older tube TVs obsolete
Competitive Context
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- Internet-delivered content draws viewers away from TV
- Internet on the TV
- Movie theaters increase bang for the buck
Segment Performance
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- LCD increases dominance over older technologies
- Sales by segment
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- Figure 5: U.S. factory sales of televisions, by type, 2008 and 2010
- Figure 6: U.S. factory sales of televisions, by type, 2006-12
Segment Performance—LCD Flat Panel
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- Newer LED models help stem declining average unit prices
- LCD flat-panel sales and forecast
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- Figure 7: U.S. factory sales and forecast of LCD flat-panel TVs, at current prices, 2006-12
- Figure 8: U.S. factory unit sales of LCD flat-panel TVs, at current prices, 2006-10
Segment Performance—Plasma Flat Panel
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- Plasma continues slide but sees boost from value segment
- Plasma flat-panel sales and forecast
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- Figure 9: U.S. factory sales and forecast of plasma flat-panel TVs, at current prices, 2006-12
- Figure 10: U.S. factory unit sales of plasma flat-panel TVs, at current prices, 2006-10
Segment Performance—Front Projection
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- Price drops most dramatic for front projectors
- Front projection sales and forecast
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- Figure 11: U.S. factory sales and forecast of front projection TVs, at current prices, 2006-12
- Figure 12: U.S. factory unit sales of front projection TVs, at current prices, 2006-10
Segment Performance—Digital Rear Projection
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- Rear projection maintains price points with niche appeal
- Digital rear projection sales and forecast
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- Figure 13: U.S. factory sales and forecast of digital rear projection TVs, at current prices, 2006-12
- Figure 14: U.S. factory unit sales of digital rear projection TVs, at current prices, 2006-10
Leading Brands
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- Korean brands ascend while former leaders lose share
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- Figure 15: Ownership of leading television brands, 2006-10
- Sony carries most brand equity but outsold by Samsung and LG
- Vizio represents power and danger of competing on price
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- Figure 16: Desirability of leading television brands, October 2010
Innovation and Innovators
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- 3DTV continues to evolve
- 3D without glasses
- Passive 3D glasses
- Twin View touch remote control acts as mobile device
- CES 2011—New TV models offer thinner bodies and even greater internet convergence
- Samsung
- Vizio
- Sony
- LG
- Panasonic
Marketing Strategies
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- Overview
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- Figure 17: Adspend of leading television brands, 2008 and 2009
- Television advertising
- Samsung
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- Figure 18: Samsung 3D LED TV—Aquatic living room, television ad, March 2010
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- Figure 19: Samsung 3D LED TV—Soccer fanatics, television ad, June 2010
- Figure 20: Samsung apps platform—New York couple, television ad, October 2010
- LG
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- Figure 21: LG Infinia Series—The End, television ad, May 2010
- Vizio
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- Figure 22: Vizio televisions—Beyoncé competes, television ad, November 2010
- Sharp
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- Figure 23: Sharp Aquos—Quattron technology, television ad, March 2010
- Toshiba
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- Figure 24: Toshiba Cinema Series—Woman in car, television ad, October 2010
- Online advertising
- Standout websites incorporate visual sophistication and social media
- Point of sale advertising
- National events and tours give consumers a chance to experience 3D
Retail Distribution
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- Chain electronics stores and mass merchandisers instrumental in channel strategies
- Chain electronics stores
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- Figure 25: Where home theater hardware is purchased, by household income, October 2010
- Best Buy helps Sony implement uniform consumer messaging
Ownership and Intent to Buy
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- Household income determines likelihood of flat panel ownership
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- Figure 26: Penetration of TV technologies and large screen size, by key demographics, October 2009-June 2010
- Respondents may favor secondary flat-panel upgrades over newest tech
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- Figure 27: Ownership of and intent to buy types of TVs, October 2010
- Two thirds of respondents have purchased a TV in the last four years
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- Figure 28: Timing of last TV purchase, by household income, October 2010
Decision Factors
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- Decision-makers more likely to weigh technicalities and see less differentiation
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- Figure 29: Considerations in the purchase decision, October 2010
- Highest earners more likely to compare technicals
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- Figure 30: Considerations in the purchase decision, by household income, October 2010
Attitudes toward Televisions
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- Positioning as upgrades may benefit small to medium screen sizes
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- Figure 31: Attitudes toward televisions, October 2010
- Boomers want upgrades as much as under-35s
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- Figure 32: Attitudes toward televisions, by age, October 2010
- Family demographic less satisfied with picture quality
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- Figure 33: Attitudes toward televisions, by presence of children, October 2010
Attitudes toward Price Points
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- Consumers willing to save on brand but spend on green
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- Figure 34: Attitudes toward price points, October 2010
- Willingness to try unfamiliar brands not limited to lower earners
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- Figure 35: Attitudes toward price points, by household income, October 2010
- Family demographic more likely to buy more expensive models
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- Figure 36: Attitudes toward price points, by presence of children, October 2010
Other Uses of the Television
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- New functionalities for TV unlikely to justify premium
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- Figure 37: Interest in new functionalities of internet-enabled TVs, October 2010
Digital Streaming Services
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- Strong interest in Netflix reflects consumer attraction to value plays
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- Figure 38: Usage of and interest in streaming content sources, October 2010
- Under-35s show early interest but Netflix spreading to older users
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- Figure 39: Usage of and interest in streaming content sources, by age, October 2010
- Respondents currently in the marketplace are more likely drawn to Netflix and Amazon on Demand
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- Figure 40: Interest in streaming content sources, by intent to purchase, October 2010
Impact of Race and Hispanic Origin
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- Key points
- Asian respondents more likely to be early adopters
- Attitudes toward price points
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- Figure 41: Attitudes toward price points, by race and Hispanic origin, October 2010
- Desirability of leading brands
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- Figure 42: Desirability of leading television brands, by race and Hispanic origin, October 2010
- Attitudes toward televisions
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- Figure 43: Attitudes toward televisions, by race and Hispanic origin, October 2010
- Streaming content sources
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- Figure 44: Usage of and interest in streaming content sources, by race and Hispanic origin, October 2010
Cluster Analysis
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- Searchers
- Demographics
- Characteristics
- Opportunity
- Technicals
- Demographics
- Characteristics
- Opportunity
- Off-brands
- Demographics
- Characteristics
- Opportunity
- Cluster characteristics
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- Figure 45: Television clusters, October 2010
- Figure 46: Attitudes toward price points, by television clusters, October 2010
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- Figure 47: Considerations in the purchase decision, by television clusters, October 2010
- Figure 48: Attitudes toward televisions, by television clusters, October 2010
- Cluster demographics
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- Figure 49: Television clusters, by gender, October 2010
- Figure 50: Television clusters, by age, October 2010
- Figure 51: Television clusters, by household income, October 2010
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- Figure 52: Television clusters, by race and Hispanic origin, October 2010
- Cluster methodology
Custom Consumer Groups
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- Within family households, dads make a better target than moms
- Intent to buy
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- Figure 53: Intent to buy types of TVs, by gender and presence of children, October 2010
- Decision factors
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- Figure 54: Considerations in the purchase decision, by gender and presence of children, October 2010
- Other uses of the TV
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- Figure 55: Interest in new functionalities of internet-enabled TVs, by gender and presence of children, October 2010
- Streaming content services
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- Figure 56: Usage of and interest in streaming content sources, by gender and presence of children, October 2010
- Desirability of leading brands
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- Figure 57: Desirability of leading television brands, by gender and presence of children, October 2010
Appendix—Other Useful Consumer Tables
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- Decision factors
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- Figure 58: Considerations in the purchase decision, by gender, October 2010
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- Figure 59: Considerations in the purchase decision, by age, October 2010
- Attitudes toward price points
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- Figure 60: Attitudes toward price points, by age, October 2010
- Desirability of leading brands
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- Figure 61: Desirability of leading television brands, by household income, October 2010
Appendix—Trade Associations
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