Audio-visual Review - UK - March 2006

Table of Contents

• Introduction and Abbreviations
• Definitions
• Consumer research
• Socio-economic group
• Lifestage and Special Groups
• ACORN
• Advertising data
• Abbreviations
• Executive Summary
• Digital revolution drives the market forward
• Rapid technical change but price erosion limits growth
• Cameras and DVDs showing strongest growth
• The usual suspects dominate supply
• Distribution pattern evolving
• Consumer confusion
• Digital switch-off looming
• The convergent battleground to produce inevitable casualties
• Market Drivers
• Changing population structure presents a mixed picture
  • Figure 1: Trends and projections in totalUK population, by age group, 2000-10
• The cost of keeping up to date
  • Figure 2: PDI and consumer expenditure, atconstant 2000 prices, 2000-10
• Number of households up but average size down
  • Figure 3: UK households and one-personhouseholds, 2000-10
• Falling prices bring digital into the mainstream
• PC ownership and growth in broadband boost AV market
  • Figure 4: Ownership of PCs at home,2001-05
• The digital revolution
• Home is where the heart is
• Convergence: a double-edged sword?
  • Figure 5: Attitudes towards desktopPCs/computers, November 2004
• Market Size and Trends
• A period of dramatic change
  • Figure 6: Total audio-visual productsmarket, 2000-05
• Price deflation characterises the market
• Market Segmentation
• Convergence leads to less distinct segmentation
  • Figure 7: Value of the audio-visualmarket, by product category, 2000-05
• New technology drives growth in hardware and software
• Cameras showing strongest growth
• Hardware
• Televisions -- widescreen and flat screen driving growth
  • Figure 8: UK retail sales of TV sets, byvalue, at current and constant prices, 2000-05
• DVD and VCR players -- preparing for the next generation
  • Figure 9: UK retail sales of DVD systemsand VCRs, by volume and value, 2000-05
• Home audio/hi-fi
  • Figure 10: UK retail sales of hi-fiequipment, by value, at current and constant prices, 2000-05
• Portable audio players
  • Figure 11: UK retail value sales ofportable audio players, by volume and value, 2000-05
• Cameras
  • Figure 12: UK retail sales of cameras*,2000-05
• Video cameras
  • Figure 13: UK retail sales of videocameras, by volume and value, 2000-05
• In-car audio
  • Figure 14: Estimated UK sales of ICEproducts*, 2000-05
• Software
• Pre-recorded music
  • Figure 15: Number of trade deliveries andtotal value of pre-recorded music sales, at current and constant 2000manufacturer and retail selling prices, 2000-05
• Pre-recorded videos and DVDs
  • Figure 16: UK retail and rental sales ofpre-recorded videotapes and DVDs, 2000-05
• Supply Structure
• Alba plc
• Apple
• JVC
• LG Electronics
• Panasonic
• Philips
• Pioneer
• Sharp
• Sony
• Toshiba
• Distribution
• Overview
• DSG International (Dixons, Currys, PC World, The Link)
• Currys
  • Figure 17: Currys: sales and outlets,2000/01-2004/05
• Dixons
  • Figure 18: Dixons: sales and outlets,2000/01-2004/05
• Comet
  • Figure 19: Comet: financial and outletdata, 2000/01-2004/05
• PowerHouse
• HMV
• Virgin
• Online retailers
• Amazon
• Other online retailers
• Grocery multiples
• Other retailers
• The Consumer
• Ownership and purchasing
• Digital players on the rise, but CD players going strong
  • Figure 20: Ownership of audio equipment,2001-05
• Cassettes being phased out of collections
• DVD players catching up with VCRs
  • Figure 21: Ownership of video recordersand DVD players, 2001-05
  • Figure 22: Purchasing of pre-recordedvideos and DVDs, 2001-05
• Cameras -- the digital revolution takes hold
  • Figure 23: Ownership of cameras, 2001-05
• Disposable cameras also prove popularCamcorders -- ownership remains relatively low
  • Figure 24: Ownership of camcorders,2001-05
• ICE ownership reflects the wider audio market
  • Figure 25: Ownership of in-carentertainment, 2001-05
• Attitudes towards new audio-visual products
  • Figure 26: Agreement with statementsregarding audio-visual products, October/November 2005
• Too much technology?
• Resistance to convergence
• The need to encourage the female techie
• Young, interested and informed...
• ...but thirtysomethings have the real spending power
• Unlocking potential targets
• The integrated family household...
• ...yet singles still most interested in new technology
• The Consumer -- Detailed Demographics
  • Figure 27: Agreement with most popularstatements regarding audio-visual products, by gender, age,socio-economic group, region, working status and marital status,October/November 2005
  • Figure 28: Agreement with most popularstatements regarding audio-visual products, by presence of children,lifestage, Mintels Special Groups, media usage, ACORN category,household size and tenure, October/November 2005
  • Figure 29: Agreement with most popularstatements regarding audio-visual products, by car ownership, Internetusage, TV reception, supermarket usage and commercial TV viewing,October/November 2005
  • Figure 30: Agreement with other statementsregarding audio-visual products, by gender, age, socio-economic group,region, working status and marital status, October/November 2005
  • Figure 31: Agreement with other statementsregarding audio-visual products, by presence of children, lifestage,Mintels Special Groups, media usage, ACORN category, household sizeand tenure, October/November 2005
  • Figure 32: Agreement with other statementsregarding audio-visual products, by car ownership, satellite/cable TV,Internet usage, TV reception, supermarket usage and commercial TVviewing, October/November 2005
• The Future
• Analogue switch-off will boost sales
• The home of the future
• Compatibility/confusion issues
• Convergence in the car
• The continuing evolution of digital music
• Threat of competition from non-AV sectors
• Forecast
  • Figure 43: Forecast of the audio-visualmarket, at current prices, 2005-10
  • Figure 44: Forecast of the audio-visualmarket, at constant prices, 2005-10
• The digital home
• Factors incorporated in the forecast