Consumerscope: TV Sales Slowing
It might come as a surprise to some, but TV sales in the U.S. market are on the decline. After years of growth, CEA shipment data shows unit and dollar sales of digital displays dropped for the first time in 2010. CEA forecasts predict continued declines in TV sales volumes over the next several years. Faced with the reality of slowing TV sales, should A/V dealers worry?
It’s not time to hit the panic button … yet. Let’s take a closer look at the CE market to better understand the situation, discover what we can do to battle it, and to find other opportunities may exist. The downturn in TV sales might seem to signal that something is wrong, but actually the reverse is true. The TV market experienced years of expansive growth in the past decade powered by an unprecedented evolutionary cycle. The market simultaneously shifted from standard definition tube TVs to flat-panel high-definition sets. We also terminated analog TV transmissions in favor of digital TV broadcasts.
It’s been a fun ride. Since 1998, we’ve sold about 180 million DTV sets into 85 percent of U.S. households. Now, nearly three-quarters of U.S. homes own a HDTV. With market penetration rates peaking, it’s natural to see sales of digital displays declining. No market can grow in perpetuity, even though the industry would like it to.