Research Presentation: Consumer Adoption & Views about 4K

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1 Research Presentation: Consumer Adoption & Views about 4K Glenn Hower Senior Analyst For More Information

2 Overview Device Adoption Adoption of connected TV devices Adoption of advanced picture televisions Perceptions and Purchases Perceptions of 4K picture technology Purchases of and considerations for 4K TVs For More Information

3 % Specifying ownership Household adoption of connected TV devices shows signs of slowing 100% Home Video Devices Ownership ( ) Among all U.S. Broadband Households Gains in Streaming Media Players and Smart TVs have not sustained growth in overall household adoption 90% 80% 70% 60% 50% 40% 30% 20% Future market depends on additional connected TV devices per household or selling more advanced devices 10% 0% Smart TV Streaming media player Gaming console Smart Blu-ray player Smart DVR "Q1234. Question language?" Source: American Broadband Households and Their Technologies Q N=10,000, ±0.98% 2017 Parks Associates For More Information

4 % Indicating Familiarity of advanced picture tech is catching on, adoption is still low 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Advanced TV Familiarity and Ownership (Q1/17) Among 77% of U.S. Broadband Households owning a flat-panel TV (n = 3,974, ±1.55%) Product Familiarity (Rating 5-7 on a 7-pt. scale) Ownership Smart TV 4K/Ultra HD TV HDR TV OLED TV About one-third of flat panel TV owners are familiar with 4K, with less than 20% adopting a 4K TV About one-quarter of flat panel TV owners claim familiarity with HDR, but adoption barely registers Industry still has a way to go in educating consumers about the technological differences "CT2029. Please select the statements that best describe your experience watching video" Source: American Broadband Households and Their Technologies Q Parks Associates For More Information info@parksassociates.com 4

5 % Purchasing at least one featured TV 4K purchases have increased among flat panel TV buyers Purchase of Advanced TV ( ) Among U.S. broadband households purchasing a flat panel TV in the previous 12 months The percentage of flat panel TV buyers purchasing a 4K set doubled from 2015 to % 90% 80% 70% 60% K has caught on in the mass market (Finally?) 50% 40% 30% 20% Consumers that seek larger screens are likely to flock to higher resolution screens 10% 0% Smart TV 4K/Ultra HD TVs OLED TVs "CE2140. In thinking about the flat panel TV you purchased, which of the ofllowuing capabilities does it have?" Source: American Broadband Households and Their Technologies Q Parks Associates For More Information info@parksassociates.com 5

6 Brand remains the top consideration among those purchasing a television Flat Panel TV: Purchase Considerations (Q1/17) Among 22% of U.S. Broadband Households Buying a Flat Panel TV in the Previous 12 Months (n = 2,268, ±2.06%) Brand Smart TV functionality A screen size of more than 55" Over half of those purchasing a flat panel TV indicated brand as a top three consideration Over one-third ranked 4K picture quality or HDR as a top three consideration 4K/Ultra HD picture quality High dynamic range (HDR) picture quality Built-in Wi-Fi capability High resolution audio Included soundbar Ability to control the TV using voice control Ranking as most important consideration Ranking as 2nd or 3rd most important consideration 0% 20% 40% 60% 80% 100% % Citing characteristic at specified levls Picture quality matters when selecting a TV, and both 4K and HDR build into that QoE The big TV brands will likely continue to own the market "CE2141. Which of the following were the top 3 most important considerations when purchasing your flat panel TV?" Source: American Broadband Households and Their Technologies Q Parks Associates For More Information info@parksassociates.com 6

7 % of Owners indicating perception What do 4K TV owners think of the picture technology? 100% Perceptions of Video Quality and Experience (Q1/17) Among 18% of flat panel TV owners owning a 4K/Ultra HD TV (n=725, ±3.64%) Among 4K TV owners, about twothirds can tell a noticeable difference between 4K and SD 90% 80% 70% 60% 50% Only about one-third can tell a noticeable difference between 4K and HD, and only one-quarter feel 4K exceeds expectations 40% 30% 20% 10% 0% I can tell the difference between 4K/Ultra HD video and standard definition video I can tell the difference between 4K/Ultra HD video and High Definition video The 4K/Ultra HD video experience exceeds my expectations "CT2029. Please select the statements that best describe your experience watching video." Source: American Broadband Households and Their Technologies Q Parks Associates 4K resolution in itself may not be enough to create a compelling differentiator from 1080p HD Ultra HD will need to rely on additional technology factors For More Information info@parksassociates.com 7

8 To sum up Future growth in connected TV devices will rely on updated technology or additional device sales per household. 4K? HDR? UHD? Consumers are still confused on terminology. 4K is catching on, but it might not be the game changer in and of itself. Consumers show a substantial level of interest in advanced television technologies, but no one picture technology on its own will swing the market. Bundling technologies with 4K like high dynamic range, high frame rate, and increased color bit-depth may create a more compelling user experience to bring the Wow! factor. For More Information info@parksassociates.com 8

9 Questions? Contact us today. Leaders in Consumer Trends & Research Glenn Hower Senior For More Information

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