To the consumer scratching their head while shopping for a new television, don’t worry. You’re not alone. At least that’s what Frank N. Magid Associates - a research and consulting firm in the media and business industry that does extensive study in market trends and predictions - discovered in their 4th annual HDTV consumer awareness and attitudes study. Released in September 2005, the study was based off of an online survey of 1200 people aged 21 and older from the general population.
The study brought to light some issues confronting the television manufacturing industry…most notably the lack of consumer education. Jill Rosengard, Vice President/Managing Director, Frank N. Magid Associates, says, “The manufacturers are flooding the market with too many options, and too rapidly releasing updated versions of existing products. Consumers are paralyzed and are walking out empty handed fearing that they just don’t have the knowledge-base to select the best $1,000+ TV from among the many available options.”
According to the study, 92% of the public is aware of HDTV with 25% looking to buy a new HDTV this year. Eighty percent plan on buying at some point in the future. However, this isn’t different from past years according to the Magid Associates HDTV study.
Rosengard says, “Intention has not converted to purchase at the rates expected due to consumer confusion and paralysis due to being overwhelmed. There are many choices on technology: LCD, DLP, Plasma, CRT and the consumer can’t always differentiate or really care. There are many brands to choose from…consumers fear the set price will fall further or a bigger, better model or technology will be released shortly making their model obsolete.”
Falling prices, improving technology and numerous options of televisions is a major factor facing consumers of all levels. But, without a sense of what to buy how will the average consumer adapt?
Joe Acosta, a real estate investor in Austin, TX, says that he used advice from friends before buying a plasma television last year. Acosta says that he knows a lot of people like him that use a water cooler atmosphere to offer and gain advice about the latest in HDTV because not everyone understands the language associated with high definition.
Acosta says, “There doesn’t seem to be any common knowledge regarding this technology.” He says that manufacturers are good at telling you what they have, but not in explaining it in lamen’s terms. He also went to brick and mortar electronics stores to help choose between the television types as far as picture quality.
Rosengard agrees, “We would love to see the manufacturing community get together and create some sort of color-coded comparison system that consumers can use to more easily compare their HD options. It seems unlikely that this could happen, but given that 9% of consumers expressed a high likelihood to purchase an HD set, yet less than half of them actually took action, that tells us that a lot of HD sets didn’t leave the store shelves last year that could have under more positive shopping conditions.”
But, not everything is bleak.
Despite the lack of consumer education from manufacturers, Rosengard believes the market for 2006 looks good. “Twenty-five percent of consumers are shopping for a new television this year and 80% of them intend to buy an HD set,” she said.
There are also good innovations within the industry that can help on the consumer level.
At the 2006 Consumer Electronics Showcase (CES) in Las Vegas, Rosengard said that manufacturers demonstrated an ability to make products that make sense for the general public. “I was delighted to see content partnerships between the manufacturers like Panasonic and Comcast and consumer benefit positioning like Samsung’s Slim-Fit TV, under $1000, great picture, lighter in weight and fits in your entertainment center, your life and your budget,” she said.
So, who’s buying these high definition televisions? According to Rosengard the buying audience consists of “men over 55 with at least $75,000 in income with either satellite or digital cable.” She also says that 2006 is the year where HDTV consumption crosses over into the mainstream.
However, for the soon-to-be HDTV owner, Rosengard has this little warning, “Many shoppers are not aware that in many cases they will still need to take additional steps to actually watch HD content once they purchase the set...Wouldn’t you think if you were spending over $1,000 on a TV set that you should be able to take it home, plug it in and be done?”
That is another story for another time.
