TWICE:How is the Ultra HD TV market doing? Is there a “magic” price point and screen size that will make it take off?
Rick Wigen, product management VP, Almo: The UHD TV market has been performing exceptionally well for Almo. We believe that the major upturn in sales will occur when tier-one manufacturers can hit a $2,000 price point on a 60-inch panel.
Curt Hayes, president/CFO, Capitol: Ultra HD is getting off to a solid start. We think it can reach 10 to 15 percent of overall TV sales by the end of the year. Of course, the ultimate success of a new format has more to do with available content than anything else. We’re optimistic about the providers making UHD programming more commonplace in 2015.
At this early stage, the prices are naturally higher, making UHD more of a luxury sale. Subsequently price is not that much of a factor. The most successful screen sizes will be in the 65- to 85-inch range, which complement a large room without engulfing it.
Dennis Holzer, executive director, Power- House Alliance: For our dealers, the Ultra HD market continues to do very well, and has been a welcomed lift to both margins and profit. Our dealers have the ability to explain the product in depth, demonstrate the features, provide the advantages and benefits and lastly properly install the product. I believe 50 inches is the magic screen size and $1,399 the price to really propel Ultra HD to the next level. While at 50 inches the benefits of Ultra HD don’t show as well as on larger screen sizes, this size and price point have proven to be a very sweet spot for the consumer to purchase.
Fred Towns, president, New Age Electronics and Jack of All Games: The Ultra HD TV market is transitioning from infancy stages to the here and now. As prices continue to come down and more education becomes available, Ultra HD TV will be adopted by mainstream consumers. In terms of a “magic” price point, devices need to come down to around $2,000 to spawn more wide-scale adoption. For screen size, 50 inches or above is ideal. This size has become the standard for many living rooms, especially consumers who would buy a luxury item like an Ultra HD TV.
Jeff Davis, sales senior VP, D&H Distributing: The 55- to 60-inch screen size is showing itself to be the “sweet spot” for these models, in order to keep to a dimension that most living rooms can accommodate. As for price, sales patterns will begin to change once Ultra HD TV units dip under the $1,400 threshold. However, those models must be supported by new protocols, such as the HDMI 2.0 specification to increase data transmission capability, and codec H.265 for high efficiency video coding.
