Table of Contents
Executive Summary
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- The issues
- Majority of consumers own high-definition televisions
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- Figure 1: Television ownership, May 2016
- Lengthy replacement cycles challenge market revenue
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- Figure 2: Length of time before TV replacement, May 2016
- Competition emerges from online, mobile video
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- Figure 3: Attitudes toward televisions, by parental status, May 2016
- The opportunities
- Bigger screens are in demand
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- Figure 4: Reasons for most recent TV purchase, May 2016
- Different marketing strategies for different purchasing motivations
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- Figure 5: Reasons for most recent TV purchase, by age, May 2016
- Connectivity important for 18-34 year olds
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- Figure 6: Attitudes toward televisions, by gender and age, May 2016
- What it means
The Market – What You Need to Know
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- Television market poised for growth
- Little in the way of 4K content
- Broadband a key factor for smart televisions
Market Size and Forecast
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- A break from market stagnation on the horizon
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- Figure 7: Total US sales and fan chart forecast of televisions, at current prices, 2011-21
Market Factors
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- Lack of 4K content remains a challenge for UHD TV sets
- One in ten Americans lack sufficient-quality broadband
Key Players – What You Need to Know
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- Samsung commands largest share of the television market
- Market led by LED screens
- OLED lagging in direct mail marketing
What’s Working?
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- Samsung now has largest share of the market
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- Figure 8: Leading Brands of TV, 2012-2016
- LED screens are on the rise
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- Figure 9: Samsung UHD, curved screen television offer, May 2016
What’s Struggling?
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- OLED could use a boost from direct mail marketing
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- Figure 10: Fry’s Electronics OLED 3DTV promotional email, June 2016
What’s Next?
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- The beginning of UHD
- There’s a future for virtual reality in TV
The Consumer – What You Need to Know
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- Smart TV and 4K segments show plenty of room for growth
- LED screens surpass LCD
- Larger screens top purchase inspirations
- Support for multiple devices and mobile apps important for 18-34s
Television Ownership and Purchase Intent
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- Televisions – Overview of ownership
- Majority of consumers have HDTVs in their households
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- Figure 11: Television ownership, May 2016
- Smart TVs
- Near-term opportunity to design for multiple smart TV buyers
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- Figure 12: Smart TV ownership and purchase intent, by age, May 2016
- Target multiple smart TV purchasers in urban areas
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- Figure 13: Smart TV ownership and purchase intent, by type of living area, May 2016
- Smart TV ownership considerably higher among Hispanics
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- Figure 14: Smart TV ownership and purchase intent, by Hispanic origin, May 2016
- Ultra-high definition televisions
- UHD TV purchase intent higher among younger consumers, higher income households
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- Figure 15: UHD TV ownership and purchase intent, by age and household income, May 2016
- Brand loyalty important for attracting Black consumers to new technology
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- Figure 16: UHD TV purchase intent, by race, May 2016
- Types of television by screen type
- Significant rise in LED ownership since 2012
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- Figure 17: Types of televisions owned (screen types), 2012-2016
Lifecycle of Consumers’ Televisions
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- Long TV replacement cycles present challenges for the market
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- Figure 18: Length of time before TV replacement, May 2016
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- Figure 19: Dell television set promotion example – email, June 2016
- Older consumers show longer television replacement cycles
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- Figure 20: Length of time before TV replacement (mean), May 2016
Television Purchasing Motivations
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- Consumers seek larger TV screens
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- Figure 21: Reasons for most recent TV purchase, May 2016
- Older consumers wait until they absolutely need a new TV
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- Figure 22: Reasons for most recent TV purchase, by age, May 2016
- Consumers who want higher resolutions also want larger screens
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- Figure 23: Reasons for most recent TV purchase, by reasons for most recent TV purchase, May 2016
- Interest in hardware specifications remains with general desire to upgrade
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- Figure 24: Reasons for most recent TV purchase, by reasons for most recent TV purchase – just felt like upgrading, May 2016
Important Factors when Purchasing Televisions
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- Trust in brand ahead of customer reviews in purchase factors
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- Figure 25: Importance of TV purchase influencers (NET summary), May 2016
- Asian consumers less likely to think advertising is important
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- Figure 26: Importance of television and online advertisements in TV path to purchase, by race, May 2016
- Importance of traditional advertising rises with household income
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- Figure 27: Importance of television and online advertisements in TV path to purchase, by household income, May 2016
Consumer Behaviors when Purchasing New Televisions
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- Bright future for connected home entertainment
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- Figure 28: Behaviors when buying televisions, May 2016
- Most age groups prioritize screen size
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- Figure 29: Behaviors when buying televisions, by age, May 2016
- Opportunity to promote high-end televisions alongside children’s media devices
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- Figure 30: Behaviors when buying televisions, by age of children in household, May 2016
- Black TV purchasers looking for deals
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- Figure 31: Behaviors when buying televisions, by race, May 2016
Consumers' Attitudes Toward Televisions and Connected Devices
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- Considerable room to expand in connected media devices market
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- Figure 32: Attitudes toward televisions, May 2016
- Multiple device support a strong engagement incentive for 18-34s
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- Figure 33: Attitudes toward televisions, by gender and age, May 2016
- Parents divided in whether they need a television set
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- Figure 34: Attitudes toward televisions, by parental status, May 2016
- Higher income households show greater need for universal control
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- Figure 35: Attitudes toward televisions, by household income, May 2016
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Consumer qualitative research
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – Market
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- Figure 36: Total US retail sales and forecast of televisions, at current prices, 2011-21
- Figure 37: Total US retail sales and forecast of televisions, at inflation-adjusted prices, 2011-21
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Appendix – Consumer
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- Figure 38: Types of televisions owned (screen types), 2012-2016
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- Figure 39: Brands of televisions owned, 2012-2016
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- Figure 40: Brands of televisions owned, by demographics, February 2015-March 2016 (part 1)
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- Figure 41: Brands of televisions owned, by demographics, February 2015-March 2016 (part 2)
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