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Accenture: Consumers Intend to Buy Fewer TVs

NEW YORK — Consumers intend to buy fewer televisions this year and fewer are regularly watching content on them, a new Accenture (NYSE: ACN) survey has found. Consumers are rapidly 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 findings are summarized in Accenture’s new 2012 Global Consumer Electronics Products and Services Usage Report.

The annual survey found that 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. Consistent with this, 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.

“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,” said Mitch Cline, global managing director of Accenture’s Electronics & High-Tech Group. “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.”

Smartphones and tablets
The research uncovered soaring growth in use of smartphones and tablets as consumers increasingly value mobility. 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. When consumers were asked about plans to purchase consumer electronics devices in 2011 and 2012, the story remained consistent. 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. These consumer electronics devices are increasingly being used for entertainment purposes. For example, 44 percent of tablet owners stream media content, and 43 percent download applications at least once per week. Online services and cloud computing
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. Downloading apps
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).

Television Pricing
Respondents were asked what would make them more inclined to buy a TV. 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.

Accenture

8 comments on “Accenture: Consumers Intend to Buy Fewer TVs

  1. Adeniji Kayode
    January 19, 2012

    This is an inspiring article, There are lots of reasons that may be responsible for this.

    More than before , the desire to become mobile in everything is becoming a serious issue and the level of entertaiment on mobile devices is increasing daily too.

  2. Wale Bakare
    January 21, 2012

    Am wondering how would data centers cope with stream of video contents in years to come. Is technology hedging consumers to shift use of TV away to the internet? I believe by the year 2020, internet would become too saturated – pushing of cloud computing, in-vehicle infotainment system, online video streaming and smart grid to internet.

  3. Adeniji Kayode
    January 22, 2012

    That is where technology is taking us too. A world where by you have acess to everything you need to know or do through a  portable  mobile device without having to change room or location.

  4. Damilare
    January 29, 2012

    i totally agree with this survey. Most people would rather use their tablets and other mobiles devices more than they actually watch a television. i thinks its quite true consumers will spend money on what they use most of the time. but if the prices for TVs are reasonable, maybe a few consumers wound'nt mind buying them even if its rarely used.    

  5. Damilare
    January 29, 2012

    I agree with you. Theirs going to be an increasing demand for content streaming in the future which data centers will have to deal with. They will have to be able to provide greater processing power, more storage and reliability in order to survive.   

  6. Adeniji Kayode
    February 7, 2012

    Consumers will spend money on what solves their problems the most, I agree with you.

  7. Wale Bakare
    February 22, 2012

    Nevertheless, we still need TV in homes – especially for kids. Mobile devices could only affect TV sales, it's highly hard to predict where mobile devices like smartphone and tablet pc are taking entertainment to.

  8. Adeniji Kayode
    March 1, 2012

    Yes wale, Tv is meant for the home and probably for the kids more than the adults but these kids too will grow up to join us in using the so called mobile smart devices

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