Consumers Clear On HDTV, Confused on Content
Consumers have made tremendous investments in buying high-definition televisions. The Consumer Electronics Association estimates that by the end of 2007, 40 percent of US households will have a TV set capable of displaying high-definition images and 53 percent will have some type of digital television set. This translates into more than $92 billion in wholesale invested in digital televisions since 1999, with more on the way.
With a large installed base of HD-ready households building, specialty retailers and custom installers will continue to have opportunities to sell new displays as part of their home theater installations. In addition, specialty retailers and custom installers will continue to see an expansion of their sales channels, as is evident from CEA’s annual survey of homebuilders. For example, in 2001, only 35 percent of homebuilders employed the services of a custom installer when integrating any type of home technology, including home theaters, into their new homes. By 2006, this figure had increased to 62 percent.
If the outlook for both hardware sales and installation jobs is strong, what else do retailers and installers need to do to ensure success? In a word... content. It is critically important those groups assist the client in acquiring or setting up high-definition content sources. This will ensure the customer gets the most use out of the system and has the best possible experience. Findings from a recent CEA study highlight why this is so important.