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Sony Keeps Top Spot In Plasma Display Market

By Greg Tarr -- TWICE, 7/26/2004

Sidebars:
Success Story: Sony KE42TS2 Plasma Display Panel
Sony Wins With Retailers

SAN DIEGO, CAlif. — According to Sony, strong picture performance, a popular screen size and a reasonable price point contributed to making the KE42TS2 the top-selling plasma display panel on market researcher firm The NPD Group's 2003-2004 sales list.

The strong popularity of the model kept Sony on top of the highly competitive plasma display market during the year, and helped Sony take two out of the top three top-selling plasma models in 2003/2004.

According to NPD, which tracks sell-through volume of consumer electronics products by member retailers, the KE42TS2 commanded top share of plasma retail dollar volume at $85,525,653, or 9.9 percent, between June and May. The second-ranked product was Samsung's SPN4235, which had a 4.7 percent share at $40,236,833.

The sister panel to the KE42TS2 — Sony's 32W-inch KE32TS2 — also finished strongly in the NPD ranking, taking the third spot with dollar volume of $40,224,499, or 4.7 percent share.

Key features in the KE42TS2 included HDTV capability with 1024 by 1024 native pixel resolution, a 42W-inch 16:9 screen size, a DVI with HDCP input, a 43-percent improved brightness (peak) level, a 1000:1 contrast ratio and built-in NTSC TV tuner.

The unit also included Sony's Digital Pixel Generator System, offering pixel-by-pixel interlace to progressive-scan conversion, CineMotion Reverse 3:2 pull-down technology , built-in stereo speakers and TruSurround sound with SRS 3D audio effect.

In addition to delivering strong high-definition picture performance and clean contemporary styling, Sony's product market managers said the TS series was popular because it presented an unusual integrated design approach.

"Sony's TS Series was the first all-in-one plasma television to incorporate such features as integrated speakers, a pedestal [stand] and [NTSC] TV tuner," said Earl Martin, Sony's TV marketing group product marketing manager. "Up until its introduction, most other models on the market were primarily monitors.

"As the second generation, the KE42TS2 kept its innovative design, including the silver frame bezel that compliments any environment with its sleek design."

Martin said the product succeed with "typical price moves and spiffs," and did not require any unusually strong promotional incentives or price cuts.

"With a superior picture performance, this model has maintained a premium in the market because of the added Sony value," Martin said.

The product also benefited from a fairly broad distribution approach, with top-selling accounts including big-box stores such as Best Buy, Circuit City, and Sears, and power national and regional chains such as The Good Guys, Tweeter and P.C. Richards. As for the next model year, Sony will complement the KE42TS2 with the KE42XS910.

Other contenders for the top-seller in the 2004/2005 model year will include the new XS955 models, which launch in the September through October time frame. These models will feature Sony's WEGA Engine 3, a 100-watt 2.1 Dolby Digital audio system, and ATSC and CableCARD HD tuning.

Top 10 Plasma TVs
Dollar sales at retail, June 2003 – May 2004
1. Sony KE42TS2
2. Samsung SPN4235
3. Sony KE32TS2
4. Panasonic TH42PA20U
5. Pioneer PRO1000
6. Panasonic TH42PX20U
7. Pioneer PRO1110HD
8. Hitachi 42HDT50
9. Sony KE42XS910
10. Sony KE37XS910
Source: The NPD Group
© TWICE 2004

 

Success Story: Sony KE42TS2 Plasma Display Panel

Average Selling Price: $5,557.58 Key features:

  • All-in-one design
  • DVI-HDTV interface
  • 43% improved brightness
  • Improved contrast ratio (1000:1)
  • HDTV monitor (1024 by 1024 pixel resolution
  • Built-in NTSC TV tuner
  • Built-in stereo speakers (9Wx2)
  • Digital pixel generator system
  • Pixel-by-pixel I/P conversion
  • CineMotion reverse 3-2 pull-down technology

Sony Wins With Retailers

NEW YORK — Retailers who carried Sony's KE42TS2 expressed little surprise that the unit was a top-dollar producer in the plasma category for most of the past year.

They pointed to the brand's solid reputation and strong cosmetic styling as key reasons for consumer purchases in their stores.

However, most representatives from regional chains and A/V specialty stores that were contacted for this article declined to comment, saying it was only one of a handful of models from different manufacturers that performed very well for them over that period.

Dave Weisman, Crutchfield's senior merchandising director, said the KE42TS2 was a strong performer because "it is a good value for the consumer" and because the Sony brand has excellent customer acceptance.

"We give a lot of attention to flat-panel TV, both presentation and training," Weisman noted, adding that the KE42TS2 was "grouped with other plasma TVs to allow easy comparison shopping for our customers," in Crutchfield catalogs and on its e-commerce site.

As for next year, Weisman said it is too early to tell which product or manufacturer would come out on top.

"This is a very competitive category. Sony will do well. The consumer will pick the leader," he said.

At Nebraska Furniture Mart, the KE42TS2 was also a strong performer, said Mark Shaw, video merchandising manager.

"The first reason is that it's got a four-letter name on it called — Sony," Shaw said. "In general, Sony builds product that is very dependable and easy for consumers to use. Sony does a good job making sure it stays in touch with consumers, and they build products that work."

Shaw said his store didn't offer any unusual promotions or incentives to move the unit.

"Outside of some zero percent financing, there weren't a lot of promotions in the plasma category last year at all," he said.

Tom Campbell, spokesman for the West Coast-based Ken Cranes Home Entertainment, electronics chain said good picture performance matched with exceptional cosmetics are what keep winning customers for Sony in the flat-panel category every year.

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