US TV purchasers increasingly motivated by screen size, picture quality
Details
Joseph O'Halloran
| 27 April 2022
The US TV industry has got bigger over the last two years, by three inches precisely when it comes to set size according to the latest TV Ownership Trends Report from The NPD Group.
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The study revealed that over the last two years the average size of installed TVs increased a total of three inches to 47.5-inches. In the five years prior to the pandemic screens grew by an inch per year. With home entertainment top of mind, consumers purchasing replacement TVs - that is those purchased to replace an existing household set – were found to have put more importance on screen size and picture quality than ever before.

In February 2022, 44% reported buying their new TV because they wanted a larger screen – an increase of 7 points from February 2020, while 38% purchased for better picture quality – up 5 points. The number of consumers that reported buying because pricing became more affordable was flat compared with February 2020 at 23%.

“Pandemic fuelled TV sales growth drove consumers to replace TVs in order to get larger screens and better picture quality resulting in a newer and bigger installed TV base,” noted NPD executive director, industry analyst John Buffone. “With consumers spending more time at home, entertainment became a high priority, and despite higher prices, screen size and quality remain top motivators.”

The TV Ownership Trends Report also found that consumers were also replacing TVs faster than before the pandemic began. In February 2020 the average age of a replaced TV was 6.8 years; by February 2022 that had dropped to 6.4 years. The replacement TVs being purchased are bigger and have higher picture quality than pre-pandemic as well. In February 2022, the average replacement TV was 53.6-inches, up from 49.4-inches in 2020, and nearly three-quarters (72%) of replacement TV purchases were 4K Ultra HD, up from 62% in 2020.

“The strong gains in consumers reporting picture quality as a motivator for purchase are in part driving the sales growth we are seeing in premium and big screen TVs,” added Paul Gagnon, vice president, industry advisor for NPD. “When consumers are motivated to purchase better quality TVs, they are also typically less price sensitive and place importance on larger screen sizes. While initially fuelled by the pandemic, we expect this segment of the market will continue to perform well, as consumers have placed an increased value on TVs and home entertainment that will continue into the future.”

According to NPD’s Weekly Retail Tracking Service, up to 2 April 2022 premium TV unit sales, that is over $1000, reached a five year high representing 9% of total sales in the US. When considering screen size alone, 65-inch and larger TV unit sales are expected to grow from less than a quarter of the market in 2020 to more than a third by 2024.