3D, Internet Connectivity Are Not Big Drivers of TV Sales

Results could impact the popularity of TV programming services seeking to capitalize on those features

By George Winslow -- Broadcasting & Cable, 6/9/2011 4:38:40 PM

Some of the new features for TV sets that have been heavily hyped by consumer electronics manufacturers, such as 3D and internet connectivity, are not proving to be major motivators of new TV set sales, according to a new study from DisplaySearch of set purchasing decisions in 14 markets around the world.

The conclusion that 3D features or internet connectivity are not pushing consumers to speed up their purchases of new TVs and have not become a major drive in the decision to purchase a new set could have an important impact on how fast 3D sets and internet connected TVs move into the home and the success of programmers and operators who plan to market services and content that rely on 3D or online capabilities.

The results are also disappointing news for set manufacturers, who had hoped that Internet connectivity, 3D and LED backlights would drive higher sales and speed up the replacement cycle, driving people back into the market for a new set faster than they traditional had done.

While consumers liked these new features, the DisplaySearch Global TV Replacement Study found that the main reasons why people decide to buy a new TV are the same ones that have been cited for years: namely that they wanted to "have a newer, bigger and better performing TV," the study concluded.

"Some of the findings from this study show that newer features are not yet strong drivers of new TV purchases compared to fundamentals like trading up in size or getting a flat panel TV," noted Paul Gagnon, director of North America TV research at DisplaySearch in a statement, who also stressed that more work needs to be done to educate and convince consumers on the merits of these new features.

In the majority of countries studied, LED was a below average driver of new TV replacements, but ranked stronger than internet connectivity and 3D in most cases.

The internet connectivity offered by smart TV offers users access to wide array of new content and would seem to be a strong draw for attracting new set buyers.

But the study found that a very confusing marketplace and lack of embedded wireless connectivity mean that most view Internet connectivity as a nice feature to have, but certainly not a principle reason to upgrade a TV.

Many of the countries that showed a higher level of interest were also emerging economies, so the lack of a strong traditional broadcast infrastructure may actually increase the relative importance of getting video content via the internet, and therefore make an internet-connected TV more of a motivating factor to upgrading existing sets, the study found.

Despite all the hype around 3D last year, the report also found that 3D capability was one of the weakest drivers of consumer's TV set purchases. Although 3D TV shipments showed strong growth in 2010, the study results indicate that consumers aren't looking to make a new TV upgrade just to get 3D. Even Japanese consumers, long considered to be early adopters, cited 3D as a relatively unimportant factor when deciding to buy a new TV.

The study results did indicate, however, that 3D is a more important criterion for consumers who are already looking to purchase a new set.