Price Defines HDTV Purchase
Research indicates a correlation between the cost of high definition-capable sets and the adoption rate.
Research indicates a correlation between the cost of high definition-capable sets and the adoption rate.
Dropping prices could be the defining criteria for the 4 percent rise in adoption of high-definition television (HDTV) [define] sets in the U.S., according to analysis from Leichtman Research Group, Inc. (LRG), and 33 million HDTV-capable households are predicted by the end of 2007.
Bruce Leichtman, president and principal analyst for LRG discusses the findings contained in the June 2003 report: “With over 275 million television sets in U.S. households, it will be many years before HDTV sets become the norm. Yet with prices decreasing, purchasing an HDTV set is becoming a default for the high-end TV buyer rather than an active decision to get an HDTV set. This will result in the sale of millions of HDTV sets in the next few years.”
Based on telephone surveys with 1,250 U.S. households where cable television is available, LRG found that current HDTV owners have an average household income 73 percent above average, and those most likely to purchase an HDTV set in the next year have an average income 54 percent above average.
Other findings include:
LRG’s findings of a direct correlation between HDTV adoption and the price of equipment is confirmed by research from The Cable & Telecommunications Association for Marketing (CTAM).
The CTAM survey, conducted during February and March 2003, of 1,017 respondents in U.S. households included 396 analog, 189 digital, and 254 DBS customers found that 28 percent of respondents were “very” or “somewhat” likely to buy a wide-screen HDTV monitor and decoder if the price falls to $1,800 in the next three years.
| Likelihood of Purchasing HDTV Monitor at Different Price Points |
||||||
|---|---|---|---|---|---|---|
| $1800 | $1500 | $1200 | $900 | $600 | $300 | |
| Very Likely | 10% | 11% | 14% | 24% | 30% | 45% |
| Somewhat Likely | 18% | 19% | 22% | 17% | 27% | 20% |
| Not Very Likely | 15% | 18% | 14% | 16% | 8% | 6% |
| Not At All Likely | 51% | 46% | 46% | 38% | 31% | 23% |
| Base: Total TV households who don9t already own HDTV equipment. Note: Price points were tested by a split sample. One sub-sample tested $1,800, $1,200 and $600; with the other testing $1,500, $900 and $300. |
||||||
| Source: The Cable & Telecommunications Association for Marketing | ||||||
Leave a Reply
You must be logged in to post a comment.