CES 2012: Media viewing on tablets and smartphones to affect sale of televisions

Consumers intend to buy fewer televisions this year and
fewer are regularly watching content on them.

By Telecom Lead Team: Consumers are turning to other
consumer electronics devices such as smartphones and tablet computers to view
media, while also using more online services and downloading applications for
various purposes, including entertainment. 

The percentage of con­sumers watching broadcast or cable
TV in a typical week on televisions fell from 71 percent in 2009 to 48 percent
in 2011. The percentage of consumers who intend to buy a TV set during the next
12 months declined from 35 percent in 2010 to 32 percent in 2011, according to
an Accenture survey.

The battle for consumers’ eyeballs and time is
intensifying, viewership continues to disperse, and we are starting to see the
impact on the TV as a screen in the home. Craving an always-on,
always-connected lifestyle, consumers increasingly are using other consumer
electronics devices in their daily lives to access the entertainment that only
TV once provided. While consumers will no doubt continue to buy TVs, consumers’
preferences are shifting. They are rapidly substituting other screens, such as
laptops, desktops, tablets and smartphones, to view media content,” said Mitch
Cline, global managing director of Accenture’s Electronics & High-Tech

More than half (53 percent) of survey respondents own a
smartphone, up from 28 percent in 2010. Ownership of tablets climbed to 12
percent in 2011 from 8 percent in 2010. The percentage of respondents who plan
to purchase a smartphone rose from 24 percent to 27 percent; for tablets, the
percentage jumped from 8 percent to 16 percent. 44 percent of tablet
owners stream media content, and 43 percent download applications at least once
per week.

More than half (56 percent) of the survey respondents
indicated they have changed their behaviors due to online services and cloud
computing. Nearly one-third (32 percent) have stopped, or almost stopped,
renting or buying DVDs; one-fourth (25 percent) share more personal content
with family and friends; and 19 percent access their personal content from more
devices than before. Three-fourths (75 percent) use an online mailbox, 37
percent play online games, and 26 percent stream media content. The younger
generation (18-34 year olds) are even heavier uses of online services, with
almost half (47 percent) playing online games and more than a third (36
percent) streaming media content.

Nearly two-thirds (64 percent) of respondents indicated
they download apps, usually from consumer electronics device manufacturers and
software providers’ application stores. More than two-thirds (69 percent) use
information applications (news, weather and sports); 58 percent use networking
applications (social/professional networking); and more than half (56 percent)
use entertainment applications (music, single or group games, and videos).

More than half (55 percent) indicated they would purchase
a television if the price was within their budget; 42 percent indicated a
television with high-definition resolution was an important consideration. Only
a quarter (25 percent) cited 3D functionality as a desired capability of a new
TV. Likewise, one-quarter (25 percent) indicated they would be more predisposed
to buying a TV if it offered the ability to connect to the web to access the
Internet and personal content.

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