Australians are taking to HD TV in droves with many leading vendors such as Sony experiencing chronic shortages of high end models. At Harvey Norman Alexandria recently, the Sony display was stripped bare of flat screen TVs due to the shortage..
According to a Sony report, the market for HD TV sales is booming. Companies like Sharp and Toshiba are now taking share away from several players due to the fact that they have stock and as seen as being leading manufacturers of HD LCD TVs.
The High Definition Benchmark report was released jointly by Sony Australia and marketing company GfK. It claims HD TV product sales in the second quarter of 2007 have nearly doubled, compared to the same period last year.
The growth has also seen non-HD sales decrease by 42 per cent. Australia is to make the switch to HD TV – originally due in 2008 – in the 2010-12
In the HD television market, LCD TVs outsold plasma models at a rate of nearly three to one. “Consumers are demanding the best viewing experience possible, reflected in the fact that 93pc of all LCDs sold in second quarter 2007 were high-definition models,” said Sony Australia MD Carl Rose.
“In fact, TVs are driving the sales of HD products, making up 89.1 per cent of HD sales. Importantly, full HD sales have increased at an even faster rate, up 62.2 per cent on the previous quarter, which proves Australia is rapidly becoming a high-definition nation.”
Plasma TVs experienced a similar trend, with HD sales up 48.1 per cent on the previous quarter, making up 83.9 per cent of all plasma sales.A big contributor to this was a recent Panasonic marketing campaign that revealed that the majority of Australians believe that plasma is better than LCD TV after being shown comparative models.
Sales of HD products now represent over twothirds (71%) of the total market and continue to drive spending on consumer electronics, with non-HD product sales decreasing by 42%.
Key findings from the Sony High Definition Benchmark report also revealed that:
· Three times as many HD LCD TVs were sold (204,968) than HD plasma TVs (71,555)
· The number of HD movies sold increased by almost four times on last quarter figures
· Blu-ray is clearly the leading HD format, with 87.3% of films sold in Q2 2007 in the Blu-ray format compared to only 12.7% in the HD-DVD format LCD leading the charge in HD TV sales
LCD TVs are dominating HD TV sales, out-selling plasmas nearly three-fold. Unit sales of LCD TVs continue to increase sharply year-on-year, with Q2 2007 sales 246% higher than the same quarter in 2006.
The sales value of 1080+ TVs grew from the last quarter by 62.2%, as year-on-year sales growth continues to significantly decline for non-HD models, down 75.9% compared to last year.
Carl Rose, Managing Director of Sony Australia, said, “More than ever, consumers are demanding the best viewing experience possible, reflected in the fact that 93% of all LCDs sold in Q2 2007 were high definition models. In fact, TVs are driving the sales of HD products, making up 89.1% of HD sales. Importantly, Full HD sales (1080+) have increased at an even faster rate, up 62.2% on the previous quarter which proves Australia is rapidly becoming a high definition nation.”
Dennis Butler, Research Project Manager for GfK Australia and author of the report, said, “When the Sony HD Benchmark Report began tracking the market in Q1 2005, non-HD products were continuing to grow in sales. This quarter has clearly demonstrated that HD is the new standard in consumer electronics, doubling in growth since Q2 2006, with non-HD models obviously in decline, dropping 42% in sales value from this time last year.”
Sales of HD movies increase by 400% from last quarter With an increase in movie titles being released in high definition, consumers are beginning to see their need for HD content being fulfilled. HD movie sales increased by almost four times on Q1 2007 results, whilst Blu-ray continues to be the format of choice, representing 87.3% of total HD movie
sales, compared to only 12.7% of HD-DVD movies.
Carl Rose said, “HD continues to stake its claim as the future of home entertainment viewing. It is encouraging for consumers that local content providers, such as Channel Seven and Network Ten, are acknowledging customer needs by driving content, through plans to introduce new HD channels within the year. Coupled with the expanding selection of Blu-ray movie titles on offer, consumers now have more viewing choices than ever before and we predict that this will only continue to grow.” High definition TV attracted 89.1% of the total spending on HD products in Q2 2007, followed by games consoles2, set top boxes / PVRs3, camcorders4, notebook PCs5 and DVD hardware.