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In-home Entertainment - US

Published by: Mintel International Group Ltd.

Published: Nov. 1, 2008 - 85 Pages


Table of Contents


SCOPE AND THEMES

What you need to know

Definition

Data sources

Consumer survey data

Abbreviations and terms

Abbreviations

EXECUTIVE SUMMARY

Market impacted by rising prices, recession, digital/broadband booms

Disposable income

The recession

Increasing gas prices followed by sharp drop in crude oil prices

Menu prices become more prohibitive

Theater prices make home videos a more attractive option

Digital revolution can help and hurt the in-home industry

Broadband expands its reach

Advertising and promotion

The home entertainment consumer

Usage

Attitudes and behavior

Race and Hispanic origin

Cohorts

MARKET DRIVERS

Discretionary income under pressure; upper-middle-income families are less affected

Figure 1: Percentage of income spent on key consumer expenditures, by HH income quintile, 2006

The recession may boost in-home entertainment sales

Figure 2: Consumer sentiment index, 2001-08

Oil prices skyrocket, then fall to 2005 levels

Figure 3: Historic average crude oil prices, 2002-08

Restaurant menu pricing increases spur more at-home dining

Figure 4: Changes in food away-from-home CPI, 2005-08

Figure 5: Changes in spending at casual dining restaurants, by age, July-August 2008

When the big picture was dumped for the little picture

Figure 6: Average theater admission prices, 2002-07

The digital boom fuels market growth

Figure 7: Home electronics household penetration, January 2005 and July 2008

Figure 8: Hours spent watching video, online, reading, and gaming, 2003 vs. 2007

Figure 9: Hobbies/sports/activities/memberships on the decline, 2003 vs. 2007

Figure 10: CE sales, by categories on the rise, 2004 vs. 2009

Digital mobility a threat

Broadband access increases

Figure 11: U.S. households with broadband access of at least 10 Mbps, 2007-12

ADVERTISING AND PROMOTION

OVERVIEW

Adspend

Figure 12: Advertising expenditures of the leading computer software manufacturers, 2007

Figure 13: Advertising expenditures of the leading computer hardware manufacturers, 2007

Figure 14: Advertising expenditures of the leading consumer electronics manufacturers, 2007

TV ADS

Figure 15: Bose 321 GS DVD Entertainment Center TV ad, 2007

Figure 16: Mitsubishi HDTV TV ad, 2007

Figure 17: Panasonic Viera HDTV TV ad, 2007

Figure 18: Sony Handycam TV ad, 2007

Figure 19: Sony VAIO Notebook TV ad, 2007

Figure 20: Sony Bravia HDTV TV ad, 2007

Figure 21: Pioneer Kuro TV ad, 2007

Figure 22: JVC Everio Hard-drive CamcorderTV ad, 2007

OWNERSHIP OF IN-HOME ENTERTAINMENT EQUIPMENT

Key points

Overall ownership of a home entertainment center

Figure 23: Home entertainment center ownership, by gender and age, August-September 2008

Figure 24: Home entertainment center ownership, by household income, August-September 2008

Figure 25: Home entertainment center ownership, by presence of children and number of people in the household, August-September 2008

Ownership of specific elements of home entertainment equipment

Figure 26: Ownership of specific home entertainment products, by gender and age, August-September 2008

Figure 27: Ownership of specific home entertainment products, by household income, August-September 2008

Figure 28: Ownership of specific home entertainment products, by presence of children and number of people in the household, August-September 2008

Ownership of TVs (by type), DVRs and video games

Figure 29: TV and type of TV, DVR and video game ownership, by gender and age, February 2007-March 2008 28

Figure 30: TV and type of TV, DVR and video game ownership, by household income, February 2007-March 2008

Figure 31: TV and type of TV, DVR and video game ownership, by presence of children, marital status, and number of people in the household, February 2007-March 2008

TIME SPENT WITH IN-HOME ENTERTAINMENT AND TYPES USED

Key points

Average hours spent on in-home entertainment

Figure 32: Average number of hours spent of various in-home entertainment activities, by age, August-September 2008

Figure 33: Average number of hours spent of various in-home entertainment activities, by household income, August-September 2008

Types of home entertainment enjoyed in last 12 months

Figure 34: Types of in-home entertainment enjoyed in last 12 months, by gender and age, February 2007-March 2008

Figure 35: Types of in-home entertainment enjoyed in last 12 months, by household income, February 2007-March 2008

Figure 36: Types of in-home entertainment enjoyed in last 12 months, by presence of children and number of people in the household, February 2007-March 2008

TV/MOVIES - MULTITASKING WHILE VIEWING AND SOURCES OF MOVIES

Key points

Watching TV/movies - multitasking while viewing

Figure 37: Activities while watching TV, by gender and age, August-September 2008

Figure 38: Activities while watching TV, by presence of children and number of people in the household, August-September 2008

Preferred methods for getting movies

Figure 39: Methods for getting movies at home, by age, August-September 2008

Figure 40: Methods for getting movies at home, by household income, August-September 2008

Figure 41: Methods for getting movies at home, by presence of children and number of people in the household, August-September 2008

ENTERTAINING GUESTS AT HOME

Frequency of entertaining guests at home

Figure 42: Frequency of entertaining guests at home, by age, August-September 2008

Figure 43: Frequency of entertaining guests at home, by household income, August-September 2008

Figure 44: Frequency of entertaining guests at home, by presence of children and number of people in the household, August-September 2008

Preferred activities while entertaining guests at home

Figure 45: Preferred activities while entertaining guests at home, by gender and age, August-September 2008

Figure 46: Preferred activities while entertaining guests at home, by presence of children and number of people in the household, August-September 2008

ATTITUDES AND BEHAVIOR

Key points

Households with children

Figure 47: Attitudes and behavior towards in-home entertainment among households with children, by gender and age, August-September 2008

Figure 48: Attitudes and behavior towards in-home entertainment among households with children, by number of people in the household, August-September 2008

Entertaining guests or quiet evenings at home?

Figure 49: Preference for quiet evening at home vs entertaining in the home, by gender and age, February 2007-March 2008

Figure 50: Preference for quiet evening at home vs entertaining in the home, by household income, February 2007-March 2008

Figure 51: Preference for quiet evening at home vs entertaining in the home, by educational level, February 2007-March 2008

RACE AND HISPANIC ORIGIN

Key points

Overall ownership of a home entertainment center

Figure 52: Home entertainment center ownership, by race/Hispanic origin, August-September 2008

Ownership of specific elements of home entertainment equipment

Figure 53: Ownership of specific home entertainment products, by race/Hispanic origin, August-September 2008

Ownership of TVs (by type), DVRs and video games

Figure 54: TV and type of TV, DVR and video game ownership, by race/Hispanic origin, February 2007-March 2008

Average hours spent on in-home entertainment

Figure 55: Average number of hours spent of various in-home entertainment activities, by race/Hispanic origin, August-September 2008

Types of home entertainment enjoyed in last 12 months

Figure 56: Types of in-home entertainment enjoyed in last 12 months, by race/Hispanic origin, February 2007-March 2008

Watching TV/movies - multitasking while viewing

Figure 57: Preferred activities while watching TV, by race/Hispanic origin, August-September 2008

Preferred methods for getting movies

Figure 58: Preferred methods for getting movies, by race/Hispanic origin, August-September 2008

Entertaining guests at home - frequency

Figure 59: Frequency of entertaining guests at home, by race/Hispanic origin, August-September 2008

Entertaining guests at home - preferred activities while entertaining

Figure 60: Preferred activities while entertaining guests at home, by race/Hispanic origin, August-September 2008

IMPACT OF RACE/HISPANIC ORIGIN ON ATTITUDES AND BEHAVIOR

Households with children

Figure 61: Attitudes and behavior towards in-home entertainment among households with children, by race/Hispanic origin, August-September 2008

Entertaining guests or quiet evenings at home?

Figure 62: Preference for quiet evening at home vs entertaining in the home, by race/Hispanic origin, February 2007-March 2008

COHORT ANALYSIS

Jason (male students and grads)

Penny (working class women)

Stan & Carole (upscale middle-aged couples)

Jeffrey & Ellen (affluent couples with kids)

Andrea (single moms with careers)

Entertaining guests or quiet evenings at home? - a cohort perspective

Figure 63: Preference for quiet evening at home vs entertaining in the home, by key cohorts, February 2007-March 2008

TV and type of TV, DVR and video game ownership- a cohort perspective

Figure 64: TV and type of TV, DVR and video game ownership, by gender and age, February 2007-March 2008

APPENDIX: OTHER USEFUL CONSUMER TABLES

Ownership of TVs (by type), DVRs and video games

Figure 65: TV and type of TV, DVR and video game ownership, by gender and age, February 2007-March 2008 63

Average hours spent on various home entertainment activities

Figure 66: Average number of hours spent of various in-home entertainment activities, by presence of children and number of people in the household, August-September 2008

Average hours spent on in-home entertainment

Figure 67: Average number of hours spent of various in-home entertainment activities, by gender, August-September 2008

Types of home entertainment enjoyed in last 12 months

Figure 68: Types of in-home entertainment enjoyed in last 12 months, by educational level, February 2007-March 2008

Preferred methods for getting movies

Figure 69: Preferred methods for getting movies, by gender, August-September 2008

Watching TV/movies - multitasking while viewing

Figure 70: Preferred activities while watching TV, by household income, August-September 2008

Entertaining guests at home - frequency

Figure 71: Frequency of entertaining guests, by gender, August-September 2008

Preferred activities while entertaining guests at home

Figure 72: Preferred activities while entertaining guests, by household income, August-September 2008

Attitudes and behavior

Figure 73: Attitudes and behavior towards in-home entertainment among households with children, by household income, August-September 2008

Entertaining guests or quiet evenings at home?

Figure 74: Preference for quiet evening at home vs entertaining in the home, by level of education, February 2007-March 2008

APPENDIX: TRADE ASSOCIATIONS

Abstract

The in-home entertainment industry is projected to continue growing as consumers trade expensive vacations for consumer electronics and other home activity products. Moreover, fluctuating gas prices, rising menu prices, and increasing theater admission prices have compelled many consumers to forego driving and turn to in-home entertainment for their leisure time. This means that home electronics such as flat screen or high definition TVs, DVD players, DVRs, PCs, and stereos, as well as services such as Internet technical support and video subscriptions/chains, will see further penetration as consumers seek to create, and need help with a home entertainment oasis. Beyond these topics, this report also provides in-depth analysis of:
  • How discretionary income impacts the market
  • The role of advertising and promotion in the in-home entertainment industry
  • Consumer ownership of home entertainment centers and electronics
  • Non-electronic indoor activities such as board games, card games, and other leisure pastimes
  • The rise of digital video and audio content and its affect on in-home entertainment
  • The role of broadband Internet access on the market


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