Televisions - UK - November 2007

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