03 Dec Bigger, Better & Streaming TV Drive 4K Ultra HD Adoption
Chart Source: NPD Connected Intelligence, TV Ownership Trends Report
4K ULTRA HD Is Shortening Consumers’ TV Replacement Cycle
December 3, 2018 | Consumers are increasingly migrating to the biggest and best when buying a new TV, especially when it’s for the primary viewing room – the living room. It all comes down to the factors that drive the decision to replace an existing household display. In fact, 4K Ultra HD is shortening consumers’ TV replacement cycle, getting them excited about larger screens, better picture quality and the latest technology, such as HDR.
The average TV is replaced after 6.9 years. But when a consumer buys a 4K UHD TV it shaves around six months off that cycle. These consumers are less likely to wait for their TV to feel outdated or break before deciding to upgrade. With Black Friday barely in the rear view mirror, pricing promotions remain top of mind, but that seasonal trend doesn’t reflect the normative TV buying behavior. It’s the benefits of 4K UHD more than price that’s motivating TV sales and increasing the quality and size of consumer’s living room TVs.
When you take a deeper look at what drives TV replacement, especially among consumers buying 4K UHD TVs, apps are among the key factors and influence one-third of sales. With 208 million TV-connected devices* already installed, NPD’s forecast expects this to reach 275 million by the end of 2021 with connected TVs and streaming media players driving the majority of the growth. Indeed, my 69-year-old father just went shopping for a new TV with the primary goal of getting Netflix on that display.
While boomers are adopting new technology, early adopters are upgrading their hardware and looking for new streaming options such as virtual MVPD services and direct-to-consumer (DTC) apps like HBO NOW. Seven million households are already virtual MVPD subscribers and there are over 14 million gross subscribers to DTC video apps. The TV market and video consumption habits are being driven by these core behavioral trends, while in different ways, motivated by both early and late technology adopters. Viewers are looking for the best video experience, larger screens and benefits of 4K UHD programming.
*Includes: connected TVs, streaming media players, video game consoles, and Blu-ray Disc players with apps.
with NPD’s Connected Intelligence Group.