U.S. TV purchasers more motivated by screen size and picture quality

NPD: US TV Purchasers More Motivated by Screen Size and Picture Quality Than Ever Before

PORT WASHINGTON, NY — According to the latest TV Ownership Trends Report from The NPD Group, over the last two years the average size of installed TVs increased a total of three inches to 47.5-inches. In the five years prior to the pandemic screens grew one inch per year. With home entertainment top of mind, consumers purchasing replacement TVs[1] put more importance on screen size and picture quality than ever before. In February 2022, 44% reported buying their new TV because they wanted a larger screen – an increase of 7 points from February 2020, while 38% purchased for better picture quality – up 5 points. The number of consumers that reported buying because pricing became more affordable was flat vs. February 2020 at 23%.

“Pandemic fueled TV sales growth drove consumers to replace TVs in order to get larger screens and better picture quality resulting in a newer and bigger installed TV base,” said John Buffone, executive director, industry analyst for NPD. “With consumers spending more time at home, entertainment became a high priority, and despite higher prices, screen size and quality remain top motivators.”

In fact, consumers are replacing TVs faster than before the pandemic began. In February 2020 the average age of a replaced TV was 6.8 years, by February 2022 that dropped to 6.4 years. The replacement TVs being purchased are bigger and have higher picture quality than pre-pandemic as well. In February 2022, the average replacement TV was 53.6-inches, up from 49.4-inches in 2020, and nearly three-quarters (72%) of replacement TV purchases were 4k UHD, up from 62% in 2020.

According to NPD’s Weekly Retail Tracking Service, year to date (14 WE April 2, 2022) premium TV unit sales (priced $1000+) have reached a five year high representing 9% of total sales in the U.S. When considering screen size alone, 65-inch and larger TV unit sales are expected to grow from less than a quarter of the market in 2020 to more than one-third by 2024, based on NPD’s Future of Tech forecast.

“The strong gains in consumers reporting picture quality as a motivator for purchase are in part driving the sales growth we are seeing in premium and big screen TVs,” said Paul Gagnon, vice president, industry advisor for NPD. “When consumers are motivated to purchase better quality TVs, they are also typically less price sensitive and place importance on larger screen sizes. While initially fueled by the pandemic, we expect this segment of the market will continue to perform well, as consumers have placed an increased value on TVs and home entertainment that will continue into the future.”

1. Replacement TVs are defined as those purchased to replace an existing household TV

Methodology

The results of The NPD Group’s Connected Intelligence TV Ownership Trends Report are based on NPD’s Retail Tracking Service and the quarterly Device Tracking survey, which reaches 5,170 U.S. consumers, aged 18+ from diverse regions and demographical backgrounds. They report on nearly 13,000 TVs installed in over 35,500 household rooms. This survey was completed between January 25, 2022 and February 11, 2022.