Big Picture: Share of 40-inch and above TVs Tripled in 5 Years to over 40%, Says Report
Moneylife Digital Team 19 September 2022
A combination of tailwinds such as reduction in prices, rising incomes, increasing internet penetration, higher bandwidth availability, and rising consumption of over-the-top (OTT) streaming have tripled the share of large-sized panel televisions (40-inch and above) to over 40% in the past five years, says a research note.
 
Drop in prices and shift in viewing habits are expanding the segment's share, CRISIL Ratings says in a report. "A sharp decline in the prices of large panel TVs, by as much as 35%-40% in the past five years, has been the most important spur. A 55-inch TV, which was priced about Rs100,000 in 2017, is now available for Rs55,000-Rs65,000. So, what has led to this significant price drop? At the outset, competition in the space has increased considerably with the entry of Xiaomi, Vu Technologies, and One Plus leading to a price war."
 
Elizabeth Master, associate director of CRISIL Research, says, "The share of large panel TVs is projected to surpass 50% of overall TV demand by fiscal 2027 with increasing adoption of new avenues of consumption, such as OTT and affordable new launches. The pandemic has changed family viewing habits. And the rise in fibre-to-the-home services will further improve broadband services, thereby aiding the adoption of larger panel TVs."
 
CRISIL says, there is rising internet penetration and subsequent rapid increase in OTT entertainment which viewers prefer to consume on bigger TV screens. 
 
In fact, India has seen a surge in internet users over the past few years, with internet penetration reaching around 62% in fiscal 2022 from less than 20% of the total population in fiscal 2015. 
 
According to Pushan Sharma, director of CRISIL Research, the number of brands in the space has doubled in the past five to seven years, with over 70 brands jostling for customer wallets at present. "Also, there was surplus capacity in the 43-inch screen size as Western countries had already moved to larger-sized screens before 2018."
 
Quoting industry sources, the report says, reliable internet connections with higher bandwidth have increased OTT viewership from a minuscule number in 2015 to around one-fourth of the total population in 2021.
 
Also, entry-level broadband plan tariffs have fallen to Rs399-Rs499 from Rs899-Rs999 in 2018, even as speeds improved. "Along with this, people being confined to their homes at the peak of the COVID-19 pandemic has supported the consumption of OTT content."
 
Another factor driving demand for large TVs is the release of films on streaming services amid the pandemic, given the lingering fear of visiting multiplexes and a spurt in online education. Also, less expense on leisure and out-of-home activities led to the diversion of funds to in-home entertainment during the peak of the pandemic.
 
Further, CRISIL says, rising per capita income has improved affordability. Per capita income rose 10.9% and 9.3%, respectively, in fiscal 2018 and fiscal 2019, coinciding with the decline in prices of panel TVs. The trend is expected to sustain over the longer term, the rating agency says.
Comments
saharaaj
1 week ago
Looks rich ar e getting richer but poor are not getting rich with the same pace
Fraud Alert: Millennials More Vulnerable to Online Scams!
Yogesh Sapkale, 16 September 2022
While speaking about cyberspace and cybercrimes, the end-users can be easily divided in two categories—digital natives and digital migrants. Digital natives are those who grew up with the internet, while digital migrants are mostly...
Redmi battery explosion allegedly kills Delhi-NCR woman, Xiaomi probing incident
IANS 12 September 2022
After a YouTuber claimed on social media that her aunt allegedly died after her Redmi 6A smartphone exploded near her on the bed while sleeping, Xiaomi said it was probing the unfortunate incident.
 
The YouTuber, who goes...
Fraud Alert: Beware of Fake Currency Trading; Skip That 'Video Call' Else…
Yogesh Sapkale, 09 September 2022
Regulators and security experts repeatedly issue warnings to make people aware of online fraud. Unfortunately, these warnings are usually ignored, and cybercriminals continue to dupe people with impunity, especially with tricks...
Consumers Continue To Cite Concerns about New Vehicle Tech: Report
Moneylife Digital Team 07 September 2022
New car shoppers are often swayed by flashy technology but a new survey of car owners finds some of the latest in-dash technology may not be ready for prime time. About 46% of vehicle owners reported at least one problem with the...
Free Helpline
Legal Credit
Feedback