Televisions - UK - August 2019

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
The market is relying on 4K sets to limit declining volume sales
Figure 1: Volume of the UK television market, 2014-2024
Further declining market value expected after modest 2018 growth
Figure 2: Value of the UK television market, 2014-24
Companies and brands
A third of main HD/4K Ultra HD screens are Samsung
Figure 3: Brand of TVs in the household and brand of the main TV in the household, June 2019
Advertising spend declined despite the impact of World Cup promotions
Figure 4: Recorded above-the-line, online display and direct mail total advertising expenditure on televisions, by media type, 2016-18
The consumer
71% of people with HD/4K televisions have two or more sets in the home
Figure 5: Number of televisions in the household, June 2019
Rising 4K take-up driving the number of televisions in the home
Figure 6: Type of televisions in the household, April 2018-June 2019
Over eight in 10 people have an internet-connected television
Figure 7: Television connectivity, January 2019 – June 2019
Over four in 10 people spent over £500 on their main television
Figure 8: Cost of main television, June 2019
There is strong demand for better built-in sound quality
Figure 9: Important factors when upgrading, June 2019
Half of people are using catch-up and streaming services on the main TV
Figure 10: Uses of the main television, June 2019
There is strong potential for television control to move beyond the traditional remote
Figure 11: Attitudes towards television technology, June 2019
What we think
ISSUES AND INSIGHTS
Consumers are prioritising larger screens as the emphasis on the main set grows
The facts
The implications
Demand for sound quality provides an opportunity to boost sales
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
The market is relying on 4K sets to limit declining volume sales
Further declining market value expected after modest 2018 growth
Live viewing time declines as the role of the TV shifts
Range of 4K Ultra HD content continues to expand
AI Upscaling offers potential solution to the lack of 8K content
Major sports events continue to provide a boost to retailers
MARKET SIZE AND FORECAST
The market is relying on 4K sets to limit declining volume sales
Figure 12: Volume of the UK television market, 2014-2024
Figure 13: Volume of the UK television market, 2014-2024
Further declining market value expected after marginal 2018 growth
Figure 14: Value of the UK television market, 2014-24
Figure 15: Value of the UK television market, 2014-24
Forecast methodology
MARKET DRIVERS
Live viewing time declines as the role of the TV shifts
Figure 16: Average daily minutes of TV viewing, 2010-17
Range of 4K Ultra HD content continues to expand
AI Upscaling offers potential solution to the lack of 8K content
Environmental impact could limit the continued growth of streaming video
Major sports events continue to provide a boost to retailers
Augmented reality being utilised to sell larger screens
2020 games console releases will drive demand for 4K screens
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
LG unveils the world’s first 8K OLED TV
Samsung previews updated ‘The Wall’ TV at CES 2019
Sony’s 98-inch 8K screen will be one of the most expensive on the market
Samsung becomes first TV manufacturer to offer Apple TV app
Advertising spend declined despite the impact of World Cup promotions
Leading three manufacturers’ share of advertising spend declines to 56%
LAUNCH ACTIVITY AND INNOVATION
LG unveils the world’s first 8K OLED TV
Figure 17: LG’s Signature Z9 8K OLED TV
Samsung previews updated ‘The Wall’ TV at CES 2019 …
Figure 18: Samsung’s The Wall TV
… while also updating its 8K TVs with flagship Q950R range
Figure 19: Samsung’s flagship Q950R television
Sony’s 98-inch 8K screen will be one of the most expensive on the market
Figure 20: Sony’s 8K Masters Series ZG9 TV
Bang & Olufsen reveals Beovision Harmony range
Figure 21: Bang & Olufsen’s Harmony TV
Samsung becomes first TV manufacturer to offer Apple TV app
ADVERTISING AND MARKETING ACTIVITY
Advertising spend declined despite the impact of World Cup promotions
Figure 22: Recorded above-the-line, online display and direct mail total advertising expenditure on televisions, by media type, 2016-18
Figure 23: Recorded above-the-line, online display and direct mail total advertising expenditure on televisions, by media type, 2017 and 2018
Leading three manufacturers’ share of advertising spend declines to 56%
Figure 24: Recorded above-the-line, online display and direct mail total advertising expenditure on televisions, by advertiser, 2016-18
Nielsen Ad Intel coverage
BRAND RESEARCH
Brand map
Figure 25: Attitudes towards and usage of selected brands, July 2019
Key brand metrics
Figure 26: Key metrics for selected brands, July 2019
Brand attitudes: Samsung achieving greater differentiation than other brands
Figure 27: Attitudes, by brand, July 2019
Brand personality: Sony and Samsung deemed fun due to success in other categories
Figure 28: Brand personality – macro image, July 2019
Samsung and Sony perceived as the most stylish and desirable brands
Figure 29: Brand personality – micro image, July 2019
Brand analysis
TV market leader Samsung deemed worth paying for more
Figure 30: User profile of Samsung, July 2019
Sony is deemed a fun yet prestigious brand
Figure 31: User profile of Sony, July 2019
LG is seen as good value but struggles to match the differentiation of Sony and Samsung
Figure 32: User profile of LG, July 2019
Panasonic scores high on trust but lacks exclusivity
Figure 33: User profile of Panasonic, July 2019
Philips is viewed as an accessible and affordable brand
Figure 34: User profile of Philips, July 2019
Toshiba seen as affordable but lacks a strong brand personality
Figure 35: User profile of Toshiba, July 2019
Hisense rapidly growing in awareness and usage despite recent UK market entry
Figure 36: User profile of Hisense, July 2019
THE CONSUMER – WHAT YOU NEED TO KNOW
A third of main HD/4K Ultra HD screens are Samsung
71% of people with HD/4K televisions have two or more sets in the home
Rising 4K take-up driving the number of televisions in the home
16% of people got their television in the last year
Over four in 10 people spent over £500 on their main television
A quarter of people say higher screen resolution is the most important upgrade factor
There is strong demand for better built-in sound quality
Half of people are using catch-up and streaming services on the main TV
Nearly half of 25-34s mount their TV to the wall
There is strong potential for television control to move beyond the traditional remote
Sound bars represent a chance to boost manufacturer revenues
TELEVISION BRAND OWNERSHIP
A third of main HD/4K Ultra HD screens are Samsung
Hisense is well-placed to increase its market share
Figure 37: Brand of TVs in the household and brand of the main TV in the household, June 2019
Samsung particularly popular among under-44s
Figure 38: Ownership of big four television brands, by age, June 2019
Samsung ownership peaks at 44% among those paying £1,001-£2,000
Figure 39: Brand of main television, by cost of main television, June 2019
TELEVISIONS IN THE HOME
71% of people with HD/4K televisions have two or more sets in the home
Figure 40: Number of televisions in the household, June 2019
Rising 4K take-up driving the number of televisions in the home
Figure 41: Type of televisions in the household, April 2018-June 2019
Younger demographics have more TVs in the home due to larger households
Figure 42: Number of televisions in the household, by age, June 2019
Two-set households are the most likely recent purchasers
Figure 43: Number of televisions in the household, by age of main television, June 2019
Most people with one TV do not want additional sets
Figure 44: Reasons for only having one television set in the household, June 2019
Over eight in 10 TV households are connected
Figure 45: Television connectivity, January 2019 – June 2019
AGE AND COST OF TELEVISIONS
16% of people got their television in the last year …
Figure 46: Age of main television set, June 2019
… rising to 23% among 16-24 year olds
Figure 47: Length of time owning main television, by age, June 2019
Over four in 10 people spent over £500 on their main television
Figure 48: Cost of main television, June 2019
35-44s are spending the most on the main television
Figure 49: Cost of main television, by Age, June 2019
IMPORTANT FACTORS WHEN UPGRADING
A quarter of people say higher screen resolution is the most important upgrade factor
There is strong demand for better built-in sound quality
Figure 50: Important factors when upgrading, June 2019
Three quarters of people prioritise bigger screens and better picture quality …
… while half are looking for effective smart TV interface or smart hubs
Figure 51: Important factors when upgrading, net data, June 2019
45-54 year olds are the most likely to prioritise resolution and larger screens
Figure 52: Important factors when upgrading, by age, June 2019
USE OF MAIN TELEVISION SETS
Half of people are using catch-up and streaming services on the main TV
Figure 53: Uses of the main television, June 2019
25-34 year olds are using the TV for streaming more than live broadcasts
Figure 54: Uses of the main television, by age, June 2019
Growth in 4K take-up could reduce live broadcast viewing further
Figure 55: Intention to buy technology products in the next three months, June 2018-June 2019
ATTITUDES TOWARDS TELEVISIONS
Vast majority of people say they have space for a larger television
Figure 56: Attitudes towards television space, June 2019
Nearly half of 25-34s mount their TV to the wall
Figure 57: Television wall mounting, by selected demographics, June 2019
Strong potential for television control to move beyond the traditional remote
Figure 58: Attitudes towards television technology, June 2019
Sound bars represent a chance to boost manufacturer revenues
Figure 59: Televisions – CHAID – Tree output, June 2019
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
Market size and forecast
Fan chart forecast
Value
Figure 60: Best- and worst-case forecast for the value of the UK television market, 2019-24
Volume
Figure 61: Best- and worst-case forecast for the volume of the UK television market, 2019-24
Brand research
Brand map
CHAID analysis – Methodology
Figure 62: Televisions – CHAID – Table output, June 2019