What Display Daily thinks: If the findings of the CTA pan out about a new refresh cycle in consumer adoption, it is very good news for the US TV market. However, that piece of good news is countermanded by the increasing comfort of US consumers with mobile and alternative screen viewing.
Could it be that there is a growing appetite for TV viewing on all screens? It’s hard to tell based on the existing data. We’ll have to wait to see how the surge of discounted sales that occur around Thanksgiving perform. If there is a real refresh cycle, we should see a significant bump in TV sales during the high shopping period.
What the Consumer Technology Association (CTA) Says About US Consumer TVs
In the rapidly evolving landscape of consumer entertainment technology, the adoption of internet-connected smart TVs is gaining substantial momentum. Recent data shared exclusively with the Variety Intelligence Platform by the Consumer Technology Association (CTA) sheds light on the notable surge in sales of smart TVs within US households during the current year.
According to the latest figures from the CTA’s US Consumer Technology One-Year Industry Forecast (2019-24), smart TVs have experienced a significant increase in household penetration, climbing from 64% to 74% within the span of a year. This surge places smart TVs as a leading category, with only LCD TVs boasting a higher penetration rate at 86%. This remarkable growth is indicative of a paradigm shift in consumer preferences, as traditional television sets make way for more connected and versatile options.
Simultaneously, the landscape for streaming media players, typified by devices like Roku, witnessed a deceleration in growth as smart TVs improved their product offerings. Previously reaching a peak of 63% in 2023, streaming media players are facing competition from smart TVs that now seamlessly integrate internet connectivity and streaming services, reducing the need for separate devices to enable online content consumption.
The influence of 5G-enabled smartphones on the consumer technology landscape cannot be overlooked, as these devices exhibited a notably higher growth rate among the 80 product categories monitored. In comparison, Bluetooth or wireless headphones, wireless earbuds, and video game console accessories demonstrated a growth rate half that of smart TVs. The data underscores the growing significance of smart TVs as a dominant player in the consumer electronics market.
A separate report from the CTA, the “2023 US Consumer Technology Ownership & Market Potential Study,” reaffirms the surge in smart TV adoption this year. This report, based on an online survey of 2,615 U.S. adults conducted in April, reveals that purchase intent for internet-enabled TVs within the next 12 months surpassed that of other television types, including 4K, 8K, and OLED models.
The rise of smart TVs is undoubtedly fueled by the momentum generated by premium video streaming during the post-pandemic era. As streaming services proliferated, they became readily accessible through user interfaces on various original equipment manufacturer (OEM) brands. Smart TVs offer an all-in-one solution for consumers, effectively diminishing the need for additional streaming devices and dongles.
While the ascendancy of smart TVs has impacted the market for streaming devices, the latter still serve a valuable purpose, particularly as secondary devices for secondary TVs in bedrooms. Companies such as Roku have shifted their focus towards integrating their streaming device functionality directly into TV sets, reflecting the evolving market trends and consumer preferences. This shift underscores the current trajectory of the consumer technology market.
Amidst the ongoing transformation of the consumer electronics industry, evidence suggests that the US is embarking on a refresh cycle for TV sets, which bodes well for manufacturers. However, the prominence of smart TVs may be short-lived. The maturing US streaming market, coupled with a new generation of homeowners who prioritize mobile and alternative screen viewing, could potentially lead to a change in consumer attitudes toward TV set ownership.
