[opendtv] PR: IDC Finds Selling TV's to Consumers a Game of Numbers

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December 16, 2004 08:00 AM US Eastern Timezone

IDC Finds Selling TV's to Consumers a Game of Numbers

SAN MATEO, Calif.--(BUSINESS WIRE)--Dec. 16, 2004--U.S. consumers are 
excited and overwhelmed by the raft of new digital television options 
that have hit the marketplace. While flat TVs using LCD and plasma 
technology have garnered the lion's share of attention, 
microdisplay-based projection televisions and even HDTV-capable CRTs 
are also capturing the eyes (and wallets) of new TV buyers. In order 
to better understand this marketplace, IDC recently completed a 
survey of more than 1,200 likely TV buyers asking about their 
preferences for TV technologies, types, sizes, features, brands, 
purchase location, and more.

Looking at the results of the survey in sum, this holiday's likely TV 
purchasers want a 42-inch HD flat TV priced at less than $2,000 from 
a major consumer electronics (CE) vendor purchased at a familiar CE 
retail store - but they could live with alternatives in several of 
those categories.

"The two key issues that came through in the results and in the 
verbatim comments were: first, price points are a key inhibitor of 
this market; and second, consumers are incredibly overwhelmed and 
confused about their digital TV options," said Danielle Levitas, vice 
president of Consumer and Broadband Markets research at IDC. "Other 
concerns that came up in the survey and in the verbatim section 
include: warranty (consumers want more than 3 months or even a year 
on these new, expensive sets); buyers want widescreen, but perceive 
16:9 as significantly more expensive than 4:3 sets; set up needs to 
be easier; and, quality is important, yet many perceive most DTVs as 
comparable."

Current market realities are that consumers can purchase a 42-inch ED 
plasma from a second-tier brand at an alternative outlet for that 
magic sub-$2,000 price point. The cold hard reality is that both 
consumers and vendors will need to reconcile these two alternatives 
over the next several month for this market to reach the kind of 
sales success that many have predicted (and for which many vendors 
hope); otherwise, many consumers may simply delay their purchases.

To purchase IDC's most recent survey and analysis, U.S. Holiday 2004 
Digital TV Purchase Survey (IDC #32352), please call IDC's Sales 
hotline at 508-988-7988 or email sales@xxxxxxxx

About IDC

IDC is the premier global market intelligence and advisory firm in 
the information technology and telecommunications industries. We 
analyze and predict technology trends so that our clients can make 
strategic, fact-based decisions on IT purchases and business 
strategy. Over 700 IDC analysts in 50 countries provide local 
expertise and insights on technology markets. Business executives and 
IT managers have relied for 40 years on our advice to make decisions 
that contribute to the success of their organizations.

IDC is a subsidiary of IDG, the world's leading technology media, 
research, and events company. Additional information can be found at 
www.idc.com

All product and company names may be trademarks or registered 
trademarks of their respective holders.
 
 
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