How cord-cutting is changing the kinds of TVs we buy

Sales of smaller TVs are drying up as more are watching shows on laptops and tablets.

The Washington Post
December 16, 2014 at 11:49PM
Super Target employee Jeremy Streit helps lift a big screen television into the cart of Tonii Simmons during Thanksgiving night shopping. ] AARON LAVINSKY • aaron.lavinsky@startribune.com Black Friday got an earlier kick off this year on Thanksgiving Day. Shoppers lined up early to be the first to get big deals on their holiday shopping at Target in Roseville Thursday, Nov. 27, 2014. ORG XMIT: MIN1411271928050009
Super Target employee Jeremy Streit helps lift a big screen television into the cart of Tonii Simmons during Thanksgiving night shopping in Roseville (The Minnesota Star Tribune)

WASHINGTON – For shoppers who bought TVs during Black Friday sales, bigger was definitely better.

Consumer research firm NPD Group found that over Thanksgiving week, sales of TVs that are 32 inches or smaller fell 50 percent compared to last year. Meanwhile, sales rose 21 percent on 33-to-49-inch TVs and soared more than 35 percent on TVs in the 50- to 64-inch category. For the biggest TVs, 65 inches and up, sales volume doubled.

Shoppers' decision to go big this year reflects a cultural change in how we're watching television programs and movies. Increasingly, shoppers are primarily looking to buy a TV for communal viewing experiences like family movie night or a live event such as the Academy Awards. But solitary TV viewing is often happening on PCs and tablets now, meaning that the need for a small TV in the bedroom or the playroom might be fading.

When it comes to big TVs, "we're pretty bullish going forward because we think that people, when they look for a new television, will be willing to spend on that experience," said Stephen Baker, NPD Group's primary hardware analyst. "Because they know when they turn to the big TV, it's not because they're going to watch a YouTube video, it's because they're going to watch the Super Bowl."

But there's more to the surge in sales of big-screen TVs: Retailers have largely given up on trying to get consumers to spring for 3-D TVs as they've realized it was a tough sell when so little content these days is filmed for 3-D viewing. Plus, Baker said, consumers weren't getting on board with the idea of having to wear special 3-D glasses.

This year, electronics retailers pivoted to showcasing TVs with Ultra HD 4K technology. The promise of a clearer picture seems to be better at enticing consumers.

"We're just seeing people kind of reverting back to what they've always wanted in a television: The biggest TVs they can get with the best picture they can get, at their price point," Baker said.

Retailers this year offered major deals during Black Friday sales on these kinds of sets: Wal-Mart, for example, promoted a Samsung 55-inch 4K Ultra HD Curved TV for $1,298, a $900 savings from its original price. Best Buy, meanwhile, offered Samsung 55-inch LED Ultra HD Smart TV for $899.99.

While the market for 50- to 64-inch TVs appears strong to Baker, he said he sees less growth potential for the mega-size sets that are 65 or inches or more. The reason, Baker believes, has little to do with how fat our wallets are or how good the promotions are on these items.

"You're getting to a point where there's not a lot of homes that can get a product that big in the house," Baker said.

Super Target employee Jeremy Streit helps lift a big screen television into the cart of Tonii Simmons during Thanksgiving night shopping. ] AARON LAVINSKY • aaron.lavinsky@startribune.com Black Friday got an earlier kick off this year on Thanksgiving Day. Shoppers lined up early to be the first to get big deals on their holiday shopping at Target in Roseville Thursday, Nov. 27, 2014. ORG XMIT: MIN1411271928050009
Roseville SuperTarget employee Jeremy Streit helped lift a television into the cart of Tonii Simmons on Thanksgiving night. (The Minnesota Star Tribune)
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