Televisions - UK - November 2007

SUMMARY

Abstract

While the scope to grow the volume of television sales is limited, new technologies have enabled manufacturers to offer new features to enhance the value of each television purchase. The technologies now available extend beyond the switch to digital and include various elements of computer technology. The reaction of consumers to the available technologies is crucial to the future growth of the television market.

This report examines the market for colour TV sets retailed in the UK including TVs that include a combined video/DVD.

TABLE OF CONTENTS

Table of Contents

• Issues in the Market
• Key themes
• Definitions
• Market in Brief
• Maintaining market growth
• Suppliers continue to innovate
• Internet offering serious competition
• Consumers upgrade to bigger screens
• Future prospects
• Internal Market Environment
• Key points:
• Replacement rates slow
  • Figure 1: When TV sets in household were obtained, 2003-07
• Spend increasing on more expensive sets
  • Figure 2: Cost of TV sets in household, 2003-07
• Which rooms need a television?
  • Figure 3: Location of TV sets in household, 2003-07
• Digital television establishes itself better
• Can high definition broadcasts move the industry forward?
• The Blu-Ray/HD-DVD war doesn't help
• Gaming: cure or curse to the television industry?
• Demand for LCD screen technology rockets
• Broader Market Environment
• Key points:
• Consumer spending holds up
  • Figure 4: PDI and consumer expenditure, at constant 2002 prices, 2002-12
• Technology and old people
  • Figure 5: Trends and projections in UK population ('000s), by age group, 2002-12
• More diverse populations
• Household size to limit sales of small TVs
  • Figure 6: Trends and projections in UK households (million), 2002-11
• Environmental Regulation
• Competitive Context
• Key points:
• Does television face stiff competition?
  • Figure 7: Favourite leisure activities, December 2006
• Internet competes for time watching TV
• Watching TV on different screens is on the rise
  • Figure 8: Usage of Internet to visit message boards/community websites, by age, 2005-07
• Increasing amounts of commercial content online
• Portable devices
• Strengths and Weaknesses in the Market
• Strengths
• Weaknesses
• Market Size and Forecast
• Key points:
  • Figure 9: UK retail sales of TV sets, by volume, 2002-07
  • Figure 10: UK retail sales of TV sets, by value, at current and constant prices, 2002-07
• The future of the market
• Forecast of small and large screens
  • Figure 11: Forecast for UK retail sales of TV sets, by volume, 2007-12
• HD growth -- if channels "trade up", so will consumers
• Size is important
  • Figure 12: Forecast for UK retail sales of TV sets, by value, at curent prices, 2007-12
• Due to massive price deflation, real growth will be higher
  • Figure 13: Forecast for UK retail sales of TV sets, by value, at constant 2007 prices, 2007-12
• Factors used in the forecast
• Market Segmentation
• Key points:
• Transition to flat screen complete
  • Figure 14: UK retail sales of TV sets, by technology 2005 and 2007
• Screens get bigger
  • Figure 15: UK retail sales of TV sets, by size, 2003-07
  • Figure 16: UK retail sales of TV sets, by 'small' and 'large' screen, 2003-07
• Market Share
• Key points:
  • Figure 17: Estimated UK retail shares of the main TV manufacturers, by value, 2003-07
• Product positioning
  • Figure 18: Typical retail prices for large television (30" or more) from the main TV manufacturers, 2007
• Companies and Products
• Major companies
• Alba plc
• Sony
• JVC (UK) Ltd
• LG Electronics
• Panasonic
• Philips (UK) Ltd
• Toshiba
• Other companies
• Hitachi
• Pioneer (GB) Ltd
• Samsung (UK) Ltd
• Sharp
• Brand Communication and Promotion
• Key points:
• Adspend rising
  • Figure 30: Main monitored media advertising expenditure on TVs, 2003-07
• Adspend highly concentrated
  • Figure 31: Main advertisers in the television market, 2006
• Channels to Market
• Key points:
  • Figure 32: Shares of the UK television market, by retailer type, 2003-07
• Internet develops its role
• Broadband takes hold
• Ranges available online extend
• Encouraging the Internet laggards
• Broader online shopping trends
• Multiple grocers pressure electricals
• Department stores in the picture
• Consumer 1 -- Buying Behaviour
• Middle-aged are key to the market
  • Figure 33: Room that most recent television purchase was for, September 2007
• Rental market impacts on younger TV buyers
• Youth mainly buy for the bedroom
• Target males to upgrade their TV sets
  • Figure 34: Time spent on leisure activities, by gender, 2005
• The effect of income on type of TV purchased
  • Figure 35: Reasons for purchasing last television, 2007
• The impact of screen size
• Internet plays a bigger role
  • Figure 36: Source of purchase of televisions, 2007
• Appendix
• Consumer research
• ACORN
• Advertising data
• Abbreviations
• Glossary
• Screen size conversions
• Internal market environment
  • Figure 40: Household penetration of TV sets, 2003-07
  • Figure 41: Screen size of TV sets in household, 2003-07
  • Figure 42: Type of screen -- TV sets in household, 2007
  • Figure 43: Features on TV sets in household, 2003-07
  • Figure 44: Location of TV sets in household, 2003-07
  • Figure 45: When TV sets in household were obtained, 2003-07
  • Figure 46: Most important factors when buying a TV set, 2003-07
  • Figure 47: Cost of TV sets in household, 2003-07
  • Figure 48: Cost of main TV set in household, 2003-07
  • Figure 49: Cost of second TV set in household, 2003-07
  • Figure 50: Cost of third TV set in household, 2003-07
  • Figure 51: Agreement with selected lifestyle statements, 2003-07
  • Figure 52: Households with satellite/cable/digital TV, 2003-07
  • Figure 53: Frequency of watching TV on an average weekday, 2003-07
  • Figure 54: Households with satellite/cable/digital TV, by size of TV screens, 2007 (column %)
  • Figure 55: Households with a home cinema system, 2003-07
• Internal market environment
  • Figure 56: UK household sizes as a percentage of the population, 2002-12
  • Figure 57: Household penetration of TV sets, 2003-07
  • Figure 58: When TV sets in household were obtained, 2003-07
  • Figure 59: Location of TV sets in household, 2003-07
• Competitive context
  • Figure 60: Frequency of watching TV on an average weekday, 2003-07
• Consumer -- Buying behaviour
  • Figure 61: Room that most recent television purchase was for, 2007
  • Figure 62: Purchase of TVs for the bedroom, by gender, age, region, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, Internet usage, supermarket usage, mobile provider and TV reception, September 2007
  • Figure 63: Room most recent TV was bought for, by gender, age, region, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, Internet usage, supermarket usage, mobile provider and TV reception, September 2007
  • Figure 64: Main reasons for buying new TV, by gender, age, region, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, Internet usage, supermarket usage, mobile provider and TV reception, September 2007
  • Figure 65: Further reasons for buying new TV, by gender, age, region, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, Internet usage, supermarket usage, mobile provider and TV reception, September 2007
  • Figure 66: Method of purchase of last TV purchased, by gender, age, region, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, Internet usage, supermarket usage, mobile provider and TV reception, September 2007
• Consumer -- Attitudes towards TV features
  • Figure 67: Consumers motivated by a desire to upgrade their television, by age and income, September 2007
  • Figure 68: Consumers mentioning brand as an important factor in television choice, by gender, age and socio-economic group, September 2007
  • Figure 69: Consumers mentioning overall look as an important factor in television choice, by gender, age and socio-economic group, September 2007
  • Figure 70: Consumers mentioning the use of TV as a computer monitor as an important factor in television choice, by gender and age, September 2007
  • Figure 71: Important features in buying a new TV in the near future, by gender, age, region, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, Internet usage, supermarket usage, mobile provider and TV reception, September 2007
  • Figure 72: Further important features in buying a new TV in the near future, by gender, age, region, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, Internet usage, supermarket usage, mobile provider and TV reception, September 2007
  • Figure 73: Further important features in buying a new TV in the near future, by gender, age, region, socio-economic group, daily and Sunday newspaper readership, household income, presence of children, Internet usage, supermarket usage, mobile provider and TV reception, September 2007