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Although TV ownership dropped last year for the first time since 1992, traditional TV viewership rose 22 minutes — the length of a sitcom — per month. Now the average viewer consumes 159 hours of TV per month.And there’s also a new media platform — your Internet browser — that increasingly competes for your attention. According to Forrester, people spend as much time on the Internet as they do watching television — and sometimes they watch TV on the Internet on sites like Netflix and Hulu. So how does digital’s infiltration of the mainstream affect consumer trends when it comes to television?
Market research firm Mintel recently published a report on the U.S. television industry — we checked out the data and found some other stats to shed some light on what’s happening in the world of television.
1. TV Embraces the Internet
Thanks to Hulu and Netflix, people don’t necessarily need television sets in order to consume media. But while the recession prompted consumers to cut back on dining out and other frivolities, they did continue to spend on home entertainment, which has prompted many TV manufacturers invest in new, Internet-enabled models. So even while traditional television is being challenged by the rise of Internet video streaming, manufacturers are embracing new consumer behaviors.
Look at Sony’s search-centric Google TV, for example. The set allows user to search for “Seinfeld,” and call up air times, cast information from IMDB and information on where the content can be viewed on the web — it’s a more holistic and streamlined experience.
There are several other ways to stream web content to your TV, including the use of connected devices likeBoxee Box. The symbiosis between Internet, apps and TV could keep the TV industry going strong.
2. The Box Office Pulls People Away From Their TVs
The movie industry has also affected TV consumerism — the rise of 3D movies has pulled consumers away from their sofas and into cinemas, where they can indulge in a highly visual experience for a few bucks more than a regular movie. While 3D TVs exist, they come at a hefty price and don’t yet provide the same level of viewer immersion.
3D technology was touted as the next frontier in the TV industry, but consumers don’t seem to be latching on — in a 2010 study, 83% of survey respondents said 3D technology isn’t enough to make them want to buy a new TV, and nearly one-third of people say 3D doesn’t enhance the viewing experience. It seems that 3D technology is preferred on the big screens of movie theaters and not in one’s home. Just 3% of TV owners own a 3D TV, but there’s not much 3D content out there to keep them entertained. The resistance also can be attributed to the glasses factor: many people find them uncomfortable, inconvenient and, in some cases, nausea-inducing.
3. LCD and Flat-Panel Screens Dominate
More than 60% of Mintel’s respondents own a flat-panel TV. Competition among television brands in 2010 drove down the price of TV sets, which in turn spurred growth in the volume of TV sales.
While Sony remains the big fish in the TV space — commanding 20% of the market share — bargain brands are gaining steam. Samsung and LG both made big strides in market share, but Vizio is presenting the greatest challenge to Sony, thanks to its placement in stores like Walmart and Sam’s Club.
Value brands like Vizio, which boast similar technology to the premium brands, but at a better price, have slashed prices by 20%. A 55″ edge-lit LED LCD HDTV was sold for $1,829.99 by Vizio and for $2,299.99 by Sony and Samsung — that’s a $400 spread, and 30% of consumers say they’d go with an unfamiliar brand if it would save them more than $200.
But it’s not enough to have a flat-panel TV — LCD screens represented 78% of factory sales in 2010. Although sales totals declined — much in part because the actual price tag on LCD TVs has decreased — LCD penetration more than tripled to 39% from 2006 to 2010.
And apparently, size matters. If you’re going for all the high tech features, you may as well go big or go home. Half of the TVs in America are now in excess of 40″.
Despite the sales spikes for these new TV features, the average number of TVs per household has not changed — the market share is rising because consumers are “trading up” for bigger and better televisions.
4. TV Is Going Social
Television viewers are often multitasking — they watch their favorite shows while interacting on social media platforms via their tablets, smartphones and laptops. A Deloitte survey found that 42% of Americans surf the web while watching television, 29% talk on their phones while the TV is on and 26% of consumers are texting or sending IMs.
According to TV Guide, Twitter leads Facebook when it comes to social engagement during a show’s airtime — a phenomenon known as “social TV.” 50% of users said they tweet about the show they’re currently watching, while only 35% say they post to Facebook. Interestingly, the most social TV shows are not necessarily the ones with the highest Nielsen rankings — they’re the ones that spur conversation and have super passionate fans. American Idol, Glee and Smallville cracked the top ten, even though they’re all in different echelons of Nielsen ratings.
At Mashable Connect, TV Guide‘s Christy Tanner spoke about social TV and where it’s going — the video of her talk is embedded above. Tanner said the reason people are inclined to share their opinions on their favorite TV shows is that it’s not a controversial topic, like politics, and it’s not boring, like the weather. And so, we share our thoughts with our friends on Facebook, Twitter and other sites.
5. Advertising Is More Targeted
Some TV brands have begun to target demographics more specifically. While they used to target the “Under 45” crowd, Samsung now targets young families, males under 35 and active and childless 25-34-years olds.
Likewise, Toshiba ads speak to independent millennial women; Sharp appeals to tech-savvy consumers withStar Trek actor George Takei, and Vizio targets shopping-savvy and trendy twenty-somethings.
You might also notice more advertising targeted toward fathers. Dads are more receptive to television product marketing, as tech is something male friends talk about over beer, and a father could justify a new television as a big investment that will benefit and entertain the whole family. Television companies may try to target dads directly — maybe with a commercial of one family with a souped up TV being happier than a family without such a TV — or via the children. A 3D TV would make gaming and other TV-based activities more exciting, for example, so the kids might give dad that extra push to splurge.
Demographic Trends and Fun Facts
The Mintel report is littered with interesting tidbits and data gleaned from its survey. Here are some interesting trends and stats:
- Flat-panel TVs remains most dominant in households with incomes that exceed $100,000. Not surprisingly, this demographic is also more likely to own a TV larger than 50”.
- Purchasers tend to want the biggest TV screen they can afford, which suggests that size trumps technology and features.
- Those under 45 or with children are more likely to have a large TV screen.
- Interest in Netflix is as high among 45-54 year olds as it is among 25-34 year olds.
- 21% of respondents would pay up to $100 more for an energy-efficient TV.
- 34% of respondents would like to upgrade at least one TV in the home.
- 49% of respondents like to have a TV in the bedroom.
- 18% of respondents like to have a TV in the kitchen.
How many and what kind of TVs do you own? Let us know in the comments below.
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