The consumer view of TV upgrades

Sean Wargo, the director of industry analysis for the CEA, just gave his update on the state of the consumer electronics industry. I thought he gave a particularly insightful dissection of how consumers view HDTV. Paraphrasing him, he said that the digital TV market is really three different markets according to what consumers want:

1. Big TVs. These sets are for those who want a really large picture to create a compelling experience.


2. Flat TVs. These sets are for consumers who want their TV to be an elegant part of their environment and not to overwhelm other parts of their decor. In this segment, extended definition, not true high-def, flat panels is where much of the buying activity has been, putting the lie to the concept that resolution sells.


3. High resolution TVs. These sets are for people who really care about how sharp and precise their TV experience is.

I think Sean's analysis is exactly right and that it just shows how easy it is to get hung up on technology and lose sight of what consumers really are asking for.

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