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Living Room Hardware - US - January 2015

Living Room Hardware - US - January 2015

This report looks at the following areas:

  • Can television sales survive cord-cutting?
  • How many smart products does a living room require?
Living room hardware is in a transition phase, as 4K televisions become mainstream purchases, as video content is increasingly accessed via the internet, as streaming media players replace shiny discs, and as TV Everywhere replaces local DVR storage. In this rare moment in which so many new technologies are converging inside the home, hardware manufacturers have a critical opportunity in which to either re-establish their prominence, or to reverse sliding share. The transition also harbingers renewal at electronics retailers recognizing that consumers and the industry are at last moving in synch toward the adoption of new products. Within this context, this report explores the entertainmentoriented hardware that consumers own, plan to buy, and how they use them.


SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
The market
Television sales reach $38 billion
Figure 1: Total US retail sales and forecast of televisions, at current prices, 2009-19
PC market exceeds TV market
Figure 2: Total US retail sales of PCs, tablets and peripherals, at current prices, 2009-14
Turnaround in average price paid for televisions
Figure 3: Price paid on most recently purchased television, October 2009-June 2014
Consolidation hits television brands
Figure 4: Brand of most recently acquired television, November 2013-June 2014
The consumer
Intent to purchase A/V more limited than TVs
Figure 5: Intent to purchase TVs and A/V hardware, September 2014
25-44s, higher-income groups, Asians spend more
Figure 6: Price paid on most recently purchased television, selected demographics, November 2013-June
2014
What we think
ISSUES AND INSIGHTS
Can television sales survive cord-cutting?
The issues
The implications
How many smart products does a living room require?
The issues
The implications
TREND APPLICATIONS
Trend: The Suite Life
Trend: Click and Connect
Mintel Futures Trend: Human
TELEVISION SALES
Key points
Sales nearly flat
Figure 7: Total US retail sales and forecast of televisions, at current prices, 2009-19
Figure 8: Total US retail sales and forecast of televisions, at inflation-adjusted prices, 2009-19
Fan chart forecast
Figure 9: Fan chart and forecast of US retail sales of televisions, 2009-19
COMPETITIVE CONTEXT
Key points
PCs versus TVs and A/V
Historical growth in PCs may hold potential for TVs
Figure 10: Total US retail sales of PCs, tablets and peripherals, at current prices, 2009-14
Rising ownership
Figure 11: PC ownership, October 2009-June 2014
Figure 12: Number of PCs owned, October 2009-June 2014
Figure 13: Number of TVs owned, October 2009-June 2014
Gaming consoles
Figure 14: Total US retail sales of gaming consoles, at current prices, 2009-14
MARKET DRIVERS
Key points
Widespread interest in varied distribution formats promote integration
Figure 15: Usage of and interest in video distribution channels, September 2014
4K content
Streaming video
Figure 16: Digital movie stores and subscription services used in past month, June 2014
Figure 17: Number of DVDs/Blu-rays bought or rented in past three months, July 2009-March 2014
Age, income driving purchase cycle, spend on TV sets
Figure 18: Time since most recently purchased television, by age, November 2013-June 2014
Figure 19: Time since most recently purchased television, by household income, November 2013-June
2014
Age, income driving spend
Figure 20: Price paid on most recently purchased television, by age, November 2013-June 2014
Figure 21: Price paid on most recently purchased television, by household income, November 2013-June
2014
Price declines
Difficulty with installation
Figure 22: Difficulty setting up entertainment systems, by selected demographics, September 2014
Rising screen size impacts A/V equipment, usage
Figure 23: Screen size of most recently purchased television, October 2009-June 2014
LEADING COMPANIES
Key points
Consolidation
Figure 24: Brand of most recently acquired television, October 2009-June 2014
MARKETING STRATEGIES
Key points
Marketing for televisions
4K in focus: Together we stand
Samsung
Figure 25: Samsung TV ad, “Coliseum”, May 2014
Panasonic
Figure 26: Panasonic TV ad, “4K Solutions”, June 2014
Vizio
Figure 27: Vizio TV ad, “What is smart”, October 2013
LG
Marketing for streaming media players
Roku
Figure 28: Confusion over streaming media sticks/boxes, September 2014
Google Chromecast
Figure 29: Google Chromecast “For bigger joy” television ad, August 2014
Slingbox
Marketing for home theater audio
Bose
INNOVATIONS AND INNOVATORS
Cornering 4K content
Providing content to all
Voice controls that work
Delivering an integrated user experience with search and discovery
TWC partners with Fan TV
New apps leverage smart TV’s unique attributes
Gaming moves to center stage with new streaming players
3D from Ultra-D and Dolby
Figure 30: Interest in glasses-free 3D, by selected demographics, September 2014
Curves
OWNERSHIP
Key points
Universal television ownership
Figure 31: Household hardware ownership, by age, November 2013-June 2014
Rising tide in Blu-ray
Figure 32: DVR, Blu-ray, and 3DTV ownership, October 2009-June 2014
Figure 33: Interest in glasses-free 3D, by gender and age, September 2014
Screen size an economic decision
Figure 34: Screen size of most recently purchased television, by household income, November 2013-June
2014
Figure 35: 3DTV ownership, by household income, November 2013-June 2014
Living room remains center of playback
Figure 36: CE ownership by room, September 2014
Households with children ahead of curve
Figure 37: Living room hardware ownership, by presence of children in household, September 2014
Figure 38: Living room hardware ownership, by gender and age, September 2014
Figure 39: Living room hardware ownership, by household income, September 2014
PURCHASING
Key points
Rising spend on televisions
Figure 40: Price paid on most recently purchased television, October 2009-June 2014
Intent to purchase
Intent to purchase A/V more limited than TVs
Figure 41: Intent to purchase TVs and A/V equipment, September 2014
Checking televisions out at retail
Figure 42: Television shopping behavior, by age, September 2014
Young men, household with kids have highest levels of intent
Figure 43: Intent to purchase TVs and A/V hardware, by age, September 2014
Figure 44: Intent to purchase TVs and A/V hardware, by gender and age, September 2014
Figure 45: Intent to purchase TVs and A/V hardware, by presence of children in household, September
2014
Rise of the web for research and for purchasing
Figure 46: Online research and shopping for televisions, by age, September 2014
Figure 47: Online research and shopping for televisions, by gender and age, September 2014
Figure 48: Online research and shopping for televisions, by household income, September 2014
Figure 49: Online research and shopping for televisions, by presence of children in household, September
2014
THE VIEWING EXPERIENCE
Key points
Binging
Figure 50: Binging, by age, September 2014
Figure 51: Binging, by gender and age, September 2014
Second screening
Figure 52: Second screening, by age, September 2014
Figure 53: Second screening, by gender and age, September 2014
Figure 54: Second screening, by presence of children in household, September 2014
Role of audio
Figure 55: Interest in high-end audio, by age, September 2014
Figure 56: Interest in high-end audio, by gender and age, September 2014
Figure 57: Interest in high-end audio, by presence of children in household, September 2014
The bedroom versus the living room
Figure 58: Communal viewership and bedroom viewership, by age, September 2014
Figure 59: Communal viewership and bedroom viewership, by household income, September 2014
Figure 60: Communal viewership and bedroom viewership, by presence of children in household,
September 2014
ACTIVITIES AND CONNECTIVITY
Key points
Supporting data
Figure 61: Current usage of and interest in trying activities on a television, September 2014
Figure 62: Internet connectivity via televisions and A/V equipment, by age, September 2014
Figure 63: Internet connectivity via televisions and A/V equipment, by household income, September 2014
Figure 64: Internet connectivity via televisions and A/V equipment, by presence of children in household,
September 2014
Figure 65: Interest in new activities on a television screen, by age, September 2014
Figure 66: Interest in new activities on a television screen, by gender and age, September 2014
IMPACT OF RACE/HISPANIC ORIGIN
Asians overindex on spend
Supporting data
Figure 67: Household hardware ownership, by race and Hispanic origin, November 2013-June 2014
Figure 68: Price of most recently purchased television, by race and Hispanic origin, November 2013-June
2014
Figure 69: Brand of most recently purchased television, by race and Hispanic origin, November 2013-June
2014
Figure 70: Difficulty setting up entertainment systems, by race and Hispanic origin, September 2014
Figure 71: Interest in glasses-free 3D, by race and Hispanic origin, September 2014
APPENDIX – OTHER USEFUL CONSUMER TABLES
Difficulty with installation
Figure 72: Difficulty setting up entertainment systems, by age, September 2014
Figure 73: Difficulty setting up entertainment systems, by gender and age, September 2014
Figure 74: Difficulty setting up entertainment systems, by household income, September 2014
Household hardware ownership
Figure 75: Household hardware ownership, by marital status and presence of children, November 2013-
June 2014
Figure 76: Screen size of most recently purchased television, by age, November 2013-June 2014
Figure 77: Screen size of most recently purchased television, by race and Hispanic origin, November
2013-June 2014
Figure 78: 3DTV ownership, by race and Hispanic origin, November 2013-June 2014
Figure 79: 3DTV ownership, by age, November 2013-June 2014
Figure 80: 3DTV ownership, by marital status with children, November 2013-June 2014
Online research and shopping for televisions
Figure 81: Online research and shopping for televisions, by race and Hispanic origin, September 2014
Price paid on most recently purchased television
Figure 82: Price paid on most recently purchased television, by marital status with children, November
2013-June 2014
Figure 83: Intent to purchase TVs and A/V hardware, by household income, September 2014
Intent to purchase
Figure 84: Intent to purchase TVs and A/V hardware, by race and Hispanic origin, September 2014
Figure 85: Intent to purchase shiny disc players, by age, November 2013-June 2014
Figure 86: Intent to purchase shiny disc players, by household income, November 2013-June 2014
Communal viewership and bedroom viewership
Figure 87: Communal viewership and bedroom viewership, by race and Hispanic origin, September 2014
Figure 88: Communal viewership and bedroom viewership, by gender and age, September 2014
APPENDIX – TRADE ASSOCIATIONS
US METHODOLOGY
CONSUMER RESEARCH
Primary Data Analysis
Secondary Data Analysis
Qualitative Research
Further Analysis
Social Media Research
TRADE RESEARCH
STATISTICAL FORECASTING

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