Frost & Sullivan Move to Digital Means Long-Term Growth for Consumer TV Market
MOUNTAIN VIEW, Calif., July 20 /PRNewswire/ -- Most U. S. consumers would be lost without their televisions. We depend on them to satiate our appetite for entertainment for movies, sports and information. The move from analog to digital-based video transmission systems is bringing a variety of new ways for people to be entertained and educated, while at the same time creating new methods for commerce and two-way communication.
According to new strategic research from Frost & Sullivan (www.frost.com), U.S. Consumer Television Markets, product replacement is the driving force behind market growth, prompted by revolutionary technologies.
This study discusses in great detail the impact that the HDTV standard will have on this market. While there will be a transition to digital, it is not forecasted to happen overnight. This is because "an analog TV will always work with cable, satellite dishes, DVD and VCRs" according to Frost & Sullivan analysts. In addition, most consumers will first purchase set-top boxes that deliver digital TV broadcasts to analog TV. Finally, the initial cost of digital TV will be too high for mainstream consumers, limiting sales to niche early adopters. For these reasons, "the changeover from analog to digital TV will be gradual and will take place over a period of several years," says Frost & Sullivan's telecommunications analysts. However, in light of the fact that an estimated one in five U.S. consumers can be labeled as an early adopter, it is expected that some HDTV revenue will be generated as early as 1998.
The U.S. market for consumer television currently consists of 18 vendors. Among the companies participating in the market, 14 competitors are U.S. divisions or subsidiaries of multinational companies with headquarters overseas. One competitor, Pioneer Video, is an importer. AmPro, Runco International, and White Consolidation Industries are three U.S. manufacturers of consumer televisions in the marketplace. Approximately 70 percent of the total revenues in the consumer TV market in 1997 were derived from imported products, while 30 percent were produced by U.S. manufacturing facilities.
Competitive factors in North America include price, performance, quality, brand strength and reputation, variety of products offered, marketing and sales capabilities, manufacturing costs, services, and support. The market leaders are currently Sony Electronics, Thomson Consumer Electronics, and Panasonic. These companies represent 52 percent of the total market.
This study segments the market into direct-view television, analog projection television, and high-definition television (HDTV) market segments, with HDTV leading the market growth.
U.S. Consumer Television Markets provides a comprehensive view of the market, including anticipated market trends, existing challenges and assessed competition. With a thorough analysis of U.S. consumer demands, this study provides vital market intelligence that companies can use to eliminate any confusion and delineate the advantages of new products.
The technologies reviewed include direct view television, color TV-only, color TV/VCR combos, monochrome TV, analog projection television, rear-view projection TV, front-view projection TV, and high definition television.
Market participants include: AmPro, Funai Corporation, Inc., Hitachi America Ltd., JVC Company of America, Panasonic, Mitsubishi Consumer Electronics, Philips Consumer Electronics, Pioneer Video Corporation, Runco International, Sharp Electronics Corp., Samsung Electronics America Inc., Sanyo Fisher Company, Sony Electronics Inc., Thomson Consumer Electronics, Toshiba America Consumer Products, Vidikron of America, White Consolidated Industries, and Zenith Electronics Corporation. Related Companies include: Fast Electronic U.S., Inc., Home Shopping Network, and L G Electronics USA.
This Telecommunications Industry research has integrated the Market Engineering consulting philosophy into the entire research process. Critical phases of this research included: identification of industry challenges, market engineering measurements, strategic recommendations, planning and market monitoring. All of the vital elements of this system help the market participants navigate successfully through the telecommunications market.
Frost & Sullivan is an international marketing consulting company that monitors the telecommunications industry for market trends, market measurements, and strategies. This ongoing research is utilized to update a series of research publications such as #2839-64 U.S. Video and Audio Post-Production Hardware and Software Markets and to support industry participants with customized consulting needs. Visit Frost $ Sullivan's Web site: frost.com
Report: 2722-62 Date: July 1998 Price: $2950
SOURCE Frost & Sullivan
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