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- Televisions - US - January 2011
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Despite the recession, the television market has enjoyed steady growth in unit volume as flat panels reached mainstream adoption over the last five years. However, stalling momentum in 2010 suggests that macroeconomic forces are finally catching up to the industry. Manufacturers are under pressure to generate new sources of premium (eg 3DTV) and will need to gauge consumer appetites carefully to invest in the right technologies.
In this exclusive report, Mintel takes a look at the innovations and consumer attitudes that shape the intensely competitive dynamics of the TV industry.
Analysis and insights offered include:
- Where LCD and plasma technology is headed
- Why 3DTV isn’t working and what might fix it
- Which demographics specific brands are targeting
- How distribution channels can be used strategically
- How many consumers are still in the market
- What motivations drive current purchases
- How much a brand name is worth
- Which value-added features consumers will pay extra for
Scope and Themes
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Advertising
Abbreviations and terms
Abbreviations
Terms
Executive Summary
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
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
Trend—That’s (Home) Entertainment!
Market Size and Forecast
Future growth rests on adoption of higher-margin technologies
Sales and forecast
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
Price promotions trump slump in consumer confidence
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
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
Internet-delivered content draws viewers away from TV
Internet on the TV
Movie theaters increase bang for the buck
Segment Performance
LCD increases dominance over older technologies
Sales by segment
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
Newer LED models help stem declining average unit prices
LCD flat-panel sales and forecast
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
Plasma continues slide but sees boost from value segment
Plasma flat-panel sales and forecast
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
Price drops most dramatic for front projectors
Front projection sales and forecast
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
Rear projection maintains price points with niche appeal
Digital rear projection sales and forecast
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
Korean brands ascend while former leaders lose share
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
Figure 16: Desirability of leading television brands, October 2010
Innovation and Innovators
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
Overview
Figure 17: Adspend of leading television brands, 2008 and 2009
Television advertising
Samsung
Figure 18: Samsung 3D LED TV—Aquatic living room, television ad, March 2010
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
Figure 21: LG Infinia Series—The End, television ad, May 2010
Vizio
Figure 22: Vizio televisions—Beyoncé competes, television ad, November 2010
Sharp
Figure 23: Sharp Aquos—Quattron technology, television ad, March 2010
Toshiba
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
Chain electronics stores and mass merchandisers instrumental in channel strategies
Chain electronics stores
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
Household income determines likelihood of flat panel ownership
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
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
Figure 28: Timing of last TV purchase, by household income, October 2010
Decision Factors
Decision-makers more likely to weigh technicalities and see less differentiation
Figure 29: Considerations in the purchase decision, October 2010
Highest earners more likely to compare technicals
Figure 30: Considerations in the purchase decision, by household income, October 2010
Attitudes toward Televisions
Positioning as upgrades may benefit small to medium screen sizes
Figure 31: Attitudes toward televisions, October 2010
Boomers want upgrades as much as under-35s
Figure 32: Attitudes toward televisions, by age, October 2010
Family demographic less satisfied with picture quality
Figure 33: Attitudes toward televisions, by presence of children, October 2010
Attitudes toward Price Points
Consumers willing to save on brand but spend on green
Figure 34: Attitudes toward price points, October 2010
Willingness to try unfamiliar brands not limited to lower earners
Figure 35: Attitudes toward price points, by household income, October 2010
Family demographic more likely to buy more expensive models
Figure 36: Attitudes toward price points, by presence of children, October 2010
Other Uses of the Television
New functionalities for TV unlikely to justify premium
Figure 37: Interest in new functionalities of internet-enabled TVs, October 2010
Digital Streaming Services
Strong interest in Netflix reflects consumer attraction to value plays
Figure 38: Usage of and interest in streaming content sources, October 2010
Under-35s show early interest but Netflix spreading to older users
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
Figure 40: Interest in streaming content sources, by intent to purchase, October 2010
Impact of Race and Hispanic Origin
Key points
Asian respondents more likely to be early adopters
Attitudes toward price points
Figure 41: Attitudes toward price points, by race and Hispanic origin, October 2010
Desirability of leading brands
Figure 42: Desirability of leading television brands, by race and Hispanic origin, October 2010
Attitudes toward televisions
Figure 43: Attitudes toward televisions, by race and Hispanic origin, October 2010
Streaming content sources
Figure 44: Usage of and interest in streaming content sources, by race and Hispanic origin, October 2010
Cluster Analysis
Searchers
Demographics
Characteristics
Opportunity
Technicals
Demographics
Characteristics
Opportunity
Off-brands
Demographics
Characteristics
Opportunity
Cluster characteristics
Figure 45: Television clusters, October 2010
Figure 46: Attitudes toward price points, by television clusters, October 2010
Figure 47: Considerations in the purchase decision, by television clusters, October 2010
Figure 48: Attitudes toward televisions, by television clusters, October 2010
Cluster demographics
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
Figure 52: Television clusters, by race and Hispanic origin, October 2010
Cluster methodology
Custom Consumer Groups
Within family households, dads make a better target than moms
Intent to buy
Figure 53: Intent to buy types of TVs, by gender and presence of children, October 2010
Decision factors
Figure 54: Considerations in the purchase decision, by gender and presence of children, October 2010
Other uses of the TV
Figure 55: Interest in new functionalities of internet-enabled TVs, by gender and presence of children, October 2010
Streaming content services
Figure 56: Usage of and interest in streaming content sources, by gender and presence of children, October 2010
Desirability of leading brands
Figure 57: Desirability of leading television brands, by gender and presence of children, October 2010
Appendix—Other Useful Consumer Tables
Decision factors
Figure 58: Considerations in the purchase decision, by gender, October 2010
Figure 59: Considerations in the purchase decision, by age, October 2010
Attitudes toward price points
Figure 60: Attitudes toward price points, by age, October 2010
Desirability of leading brands
Figure 61: Desirability of leading television brands, by household income, October 2010
Appendix—Trade Associations
- Advanced Television Systems Committee
- Blockbuster USA
- Consumer Electronics Association
- Cyber Security Industry Alliance
- Google, Inc.
- Hitachi (USA)
- Incos Ltd
- LG Electronics Inc (USA)
- Logitech Inc.
- Macy's, Inc.
- Microsoft USA
- National Association of Theater Owners (NATO)
- National Basketball Association
- Nebraska Furniture Mart, Inc.
- Netflix, Inc.
- Panasonic Corporation of North America
- Samsung Electronics (USA)
- Sanyo North America Corporation
- Sony Corporation of America
- THOMSON (RCA)
- Toshiba Corporation (USA)
- U.S. Bureau of Labor Statistics
- Walmart Stores (USA)
- Yahoo! Inc
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