TV Embraces the Internet
Thanks to Hulu and Netflix, people don’t necessarily need television
sets in order to consume media. But while the recession prompted
consumers to cut back on dining out and other frivolities, they did
continue to spend on home entertainment, which has prompted many TV
manufacturers invest in new, Internet-enabled models. So even while
traditional television is being challenged by the rise of Internet video
streaming, manufacturers are embracing new consumer behaviors.
Look at Sony’s search-centric Google TV,
for example. The set allows user to search for “Seinfeld,” and call up
air times, cast information from IMDB and information on
where the content can be viewed on the web — it’s a more holistic and
streamlined experience.
There are several other ways to stream
web content to your TV, including the use of connected devices like
Boxee Box. The
symbiosis between Internet, apps and TV could keep the TV industry going
strong.
The Box Office Pulls People Away From Their TVs
The movie industry has also affected TV consumerism — the rise of 3D
movies has pulled consumers away from their sofas and into cinemas,
where they can indulge in a highly visual experience for a few bucks
more than a regular movie. While 3D TVs exist, they come at a hefty
price and don’t yet provide the same level of viewer immersion.
3D technology was touted as the next frontier in the TV industry, but
consumers don’t seem to be latching on — in a 2010 study, 83% of survey
respondents said 3D technology isn’t enough to make them want to buy a
new TV, and nearly one-third of people say 3D doesn’t enhance the
viewing experience. It seems that 3D technology is preferred on the big
screens of movie theaters and not in one’s home. Just 3% of TV owners
own a 3D TV, but there’s not much 3D content out there to keep them
entertained. The resistance also can be attributed to the glasses
factor: many people find them uncomfortable, inconvenient and, in some
cases, nausea-inducing.
LCD and Flat-Panel Screens Dominate
More than 60% of Mintel’s respondents own a flat-panel TV.
Competition among television brands in 2010 drove down the price of TV
sets, which in turn spurred growth in the volume of TV sales.
While Sony remains the big fish in the TV space — commanding 20% of
the market share — bargain brands are gaining steam. Samsung and LG both
made big strides in market share, but Vizio is presenting the greatest
challenge to Sony, thanks to its placement in stores like Walmart and
Sam’s Club.
Value brands like Vizio, which boast similar technology to the
premium brands, but at a better price, have slashed prices by 20%. A 55″
edge-lit LED LCD HDTV was sold for $1,829.99 by Vizio and for $2,299.99
by Sony and Samsung — that’s a $400 spread, and 30% of consumers say
they’d go with an unfamiliar brand if it would save them more than $200.
But it’s not enough to have a flat-panel TV — LCD screens represented
78% of factory sales in 2010. Although sales totals declined — much in
part because the actual price tag on LCD TVs has decreased — LCD
penetration more than tripled to 39% from 2006 to 2010.
And apparently, size matters. If you’re going for all the high tech
features, you may as well go big or go home. Half of the TVs in America
are now in excess of 40″.
Despite the sales spikes for these new TV features, the average
number of TVs per household has not changed — the market share is rising
because consumers are “trading up” for bigger and better televisions.
TV Is Going Social
Television
viewers are often multitasking — they watch their favorite shows
while interacting on social media platforms via their tablets,
smartphones and laptops. A Deloitte survey found that 42% of Americans
surf the web while watching television, 29% talk on their phones while
the TV is on and 26% of consumers are texting or sending IMs.
According to TV Guide, Twitter leads Facebook when it comes
to social engagement during a show’s airtime — a phenomenon known as “social TV.”
50% of users said they tweet about the show they’re currently watching,
while only 35% say they post to Facebook. Interestingly, the most
social TV shows are not necessarily the ones with the highest Nielsen
rankings — they’re the ones that spur conversation and have super
passionate fans. American Idol, Glee and Smallville
cracked the top ten, even though they’re all in different echelons of
Nielsen ratings.
At Mashable
Connect, TV Guide‘s Christy
Tanner spoke about social TV and where it’s going — the video of her
talk is embedded above. Tanner said the reason people are inclined to
share their opinions on their favorite TV shows is that it’s not a
controversial topic, like politics, and it’s not boring, like the
weather. And so, we share our thoughts with our friends on Facebook,
Twitter and other sites.
Advertising Is More Targeted
Some TV brands have begun to target demographics more specifically. While they used to target the “Under 45” crowd, Samsung now targets young families, males under 35 and active and childless 25-34-years olds.
Likewise, Toshiba ads speak to independent millennial women; Sharp
appeals to tech-savvy consumers with Star Trek actor George
Takei, and Vizio targets shopping-savvy and trendy twenty-somethings.
You might also notice more advertising targeted toward fathers. Dads
are more receptive to television product marketing, as tech is something
male friends talk about over beer, and a father could justify a new
television as a big investment that will benefit and entertain the whole
family. Television companies may try to target dads directly — maybe
with a commercial of one family with a souped up TV being happier than a
family without such a TV — or via the children. A 3D TV would make
gaming and other TV-based activities more exciting, for example, so the
kids might give dad that extra push to splurge.
Demographic Trends and Fun Facts
The Mintel report is littered with interesting tidbits and data
gleaned from its survey. Here are some interesting trends and stats:
- Flat-panel TVs remains most dominant in households with incomes that exceed $100,000. Not surprisingly, this demographic is also more likely to own a TV larger than 50”.
- Purchasers tend to want the biggest TV screen they can afford, which suggests that size trumps technology and features.
- Those under 45 or with children are more likely to have a large TV screen.
- Interest in Netflix is as high among 45-54 year olds as it is among 25-34 year olds.
- 21% of respondents would pay up to $100 more for an energy-efficient TV.
- 34% of respondents would like to upgrade at least one TV in the home.
- 49% of respondents like to have a TV in the bedroom.
- 18% of respondents like to have a TV in the kitchen.
