UK - High Definition TV update

GfK Retail and Technology – United Kingdom, Consumer Electronics

UK Flat Screen TV sales continued to climb steadily in 2007, with a 70% increase in unit sales versus 2006. GfK weekly data showed that after-Christmas sales stayed strong and this trend continued throughout January.

In December 2007, four out of five Flat Screen TVs sold were either HD Ready or Full HD. Full HD is one of the fastest growing features, steadily increasing throughout 2007 from 2% to 9% of total Flat TV sales. At a higher average price, the value share of Full HD more than doubled to 19% of the Flat TV market in December.

Within LCD, HD ready sets are now available at less than £500, which should continue to drive the growth of High Definition, particularly as the awareness of HD broadcasting increases.

Online sales for Full HD Flat TVs are also increasing, helped by a falling average price which in December was on average £64 cheaper than in store.

2008 could well be the year of the Full HD television, helping to slow the price erosion that has been seen in the market. There are also an increasing number of products in the High Definition arena, including DVD Players, Camcorder, Projectors and Games Consoles.