Lack of Awareness and Price Sensitivities Still Problematic for 4K Demand
by Stephan Jukic – July 17th, 2014
According to findings courtesy of research company The Diffusion Group, short term demand for UHD 4K TV technology is still being hampered by two simple yet fundamental problems: first a still pervasive lack of awareness among consumers as to their technological features or even their existence and secondly a sensitivity to the price tags on some of these highly advanced ultra-resolution TV sets.
Though 4K has been around in commercially available TVs since the beginnings of 2013, TDG research findings show that roughly 8 out of 10 adult users of broadband connections still don’t know much or at all about 4K/UHD technology in TVs or display monitors. This of course isn’t working in favor of major electronics manufacturers such as Sony, Samsung or LG, who make the TVs and want to see their unit sales grow heavily.
Major manufacturers of electronics are looking to 4K TV technology as a future replacement of conventional HD TV sales which are moving into extremely narrow profit margins and even slowing sales percentages thanks to heavy competition among numerous makers.
Currently, pretty much every major manufacturer of TV display technology as well as many lesser known brands all have 4K TVs of some kind out on the market and some of them, such as Sony are also engaging in heavy duty promotion of their resolution format by filming major events such as the World Cup in it and broadcasting them live to select audiences all over the world. However, due to the still sharp prices for many 4K TVs and a lingering general lack of consumer awareness, sales aren’t yet as high as they are expected to be.
At the lower end, 4K TVs can cost as little as $1,500 USD and some larger sets retails for as much as $20,000 or more. Naturally, this creates hesitation even in those who do appreciate the much greater display power of 4K technology when it comes to buying the sets. An additional factor that’s interfering with sales growth is also the still scant availability of 4K content, although this is quickly changing thanks to a number of different broadcasters such as Netflix, Amazon Prime and the BBC among others.
According to numbers from the TDG research finding, the current $1,499 price of even lower end 4K TVs means that only an estimated 6% of consumers are likely to buy one of the sets in the current sales environment. Furthermore even moderate increases in the lower end price, from $1,499 to $1,999 decreases likelihood of purchase to just 3%.
Another major factor in the still low distribution of 4K TVs is the fact that many broadband connected TV owners are still comfortable with their existing conventional HD sets. According to TDG, some 26% of interviewed respondents.
Of course, the major manufacturers of 4K as well as numerous content creators and broadcasters are working to change these attitudes through new content and consistently decreasing prices of UHD TV sets. And given their efforts and the general trend of display technology, there is little doubt that 4K will eventually replace 1080p HD as the main high end display medium of the next 5 years. The snowball effect of increasing adoption is still in its early stages.
Story by 4k.com