TV is invading new spaces
PICTURE PERFECT: THE SMALL BOX PROVES ITS STAYING POWER Despite the challenge of video-on-demand services on mobile devices, the ever-evolving formats of TV ensures it maintains a hold on viewers.
Asnapshot of global TV sales suggests that the format has stagnated. In the first half of last year, according to retail research organisation GfK, 104.7 million TVs were sold globally, down 3.7% on the same period a year before.
However, a very different picture emerges when one drills down into regions, formats and demographics. While some formats and traditional ways of watching are dying, others are rising rapidly.
A few startling examples were presented last week in Lisbon at the IFA Global Press Conference 2017, an event that previews Europe's largest consumer electronics show, IFA, taking place in Berlin in December.
“In Italy, 25% of TV sets are located in the kitchen,” said Jürgen Boyny, Global director consumer electronics at GfK. “This means there is a market for small screen sizes and for lots of different viewing behaviours.”
The statistic may well be indicative of social activity revolving around the kitchen, but it also suggests growth in new locations as new formats of device and new forms of content make it appropriate for other spaces.
“This creates potential for multi-ownership, people buying another TV for children’s bedrooms or holiday apartments.”
The numbers show that the trend is already taking off in some European countries. In 171 million households with TV on the continent, 321 million TV sets are installed. The dubious honour of the biggest appetite for multiple screens goes to Norway, with an average of 3.1 sets per household.
However, the assumption that this is a factor of the many months of darkness in Scandinavia doesn’t apply: Norway’s neighbours don’t feature on the list. Next comes the United Kingdom with 2.7 sets per household, and France with 1.8. Both Germany and Italy boast 1.5 sets per household, and Poland features with 1.2.
This is all good news for the industry, says Boyny, as it means there is extensive market potential for selling multiple TVs.
The real opportunity, however, lies in the growth of specific formats of TV, and this applies in South Africa too.
“We are seeing sustainable growth into bigger screen sizes, 55-inch and above, but 32-inch still has the biggest share and is still growing in units.”
It is these smaller TVs that are invading new spaces, as they are ideal for kitchens and other smaller areas of the home. Smaller screen sizes, below 32-inch, have become a must-have for the many holiday apartments in southern Europe, meaning these formats are seeing substantial demand in Mediterranean countries.
However, there are three specific trends driving growth within specific segments in Europe: large-format TV sets above 60-inches, which have grown from 1 per cent of TV sales in 2014 to a projected 4% this year; 4K or Ultra High Definition (UHD) TVs,