Consumers are quickly replacing their flat-panel and older TV models at a much faster rate than they did in the last 10 to 15 years, according to a new study.
Digital broadcast transitions and more affordable flat-panel TVs have encouraged consumers to replace their TVs, especially older CRT box models, in record numbers.
However, new advanced features, such as Internet connectivity and 3-D, are still very weak drivers for TV replacement, the report by market research firm DisplaySearch said, indicating that consumers are unlikely to go out to buy a new TV just because these features become available.
Meanwhile, existing TVs being outdated or broken was also a strong driver in consumers' decision to replace their TVs, but not one of the top reasons.
"[Instead], people are replacing their units for flat-panel TVs or HDTV systems, or often both," the report said. "The decision to replace a TV is also very strongly linked to wanting a larger set with better picture quality."
Not surprising, price was an important consideration in making a TV replacement purchase. TV brand trust also came in to play in most regions worldwide, especially in Japan, where consumers highly value brand names, the report said.
"In the flat-panel TV era, so many brands have emerged with a wide range of price points that price may be trumping brand selection," according to DisplaySearch.
"This, combined with the fact that leading brands have been aggressively matching low price competition levels the playing field, but downplays brand importance."