ibc_ibc 31/08/2014 13:18 Page 5
UHD TVs lack market
penetration
ltra-HD TVs continued to make
slow and steady inroads
throughout the world, but their
share of the overall flat-panel TV market
remained minimal by the end of May,
suggesting that Ultra-HD TV pricing in
the market remains too high to gain
meaningful share, according to a report
from IHS Technology.
Among the top 13 brands for liquid-crystaldisplay televisions (LCDTV) worldwide, the
share of Ultra-HD TV shipments reached 5%
in May, up from 4% in April, 3% in March and
2% in February. But while Ultra-HD TV share
has expanded by at least 1 percentage point for
the last three months, growth hasn’t budged
much since September last year when the
market was already at the 2% level. The top 13
brands account for more than 75% of total
U
HD TVs continues to stay below 10% despite
vigorous promotion by brands because high
Ultra-HD TV pricing acts as a barrier for wider
acceptance,” Hong said. That observation,
while true of China, the world’s biggest TV
market, can also be extended to the largest
Ultra-HD TV markets worldwide. For China’s
biggest sales season for the year during the
country’s national holiday in October 1, TV
makers, however, are planning more
aggressive Ultra-HD promotions to boost
penetration.
Among Ultra-HD TV makers in May, the
Chinese had the largest proportion of UltraHD TV shipments in relation to total LCD TVs,
at 9%; followed by the South Koreans at 5%
and by Japan at 2%. The South Koreans,
however, shipped more Ultra-HD TVs, thanks
to the size and heft of its two makers—
LCD TV shipments, and also represent over
90% of overall Ultra-HD LCD TV shipments.
Ultra-HD TV shipments this year are
projected to grow to 14.5 million units, up
from just 2.0 million in 2013, as global brands
deploy aggressive marketing efforts and roll
out new models.
“Growth in this year’s global Ultra-HD TV
market is a reflection of plans among TV
makers, especially the Chinese, to increase
sales. And expansion in Ultra-HD TV volume
is mostly scheduled for the second half this
year,” said Jusy Hong, principal analyst for
consumer devices.
Ultra-HD TVs are considered part of the
LCD TV market at present. There are no UltraHD plasma-display-panel televisions (PDP
TV), and Ultra-HD organic light-emittingdiode (OLED) TVs will be available at the end
of this year. Ultra-HD TVs have much higher
resolution than conventional high-definition
sets, but the dazzling images come at a steep
trade-off: their prices can be several times
those of LCD TVs.
“In China, for instance, the share of Ultra-
Samsung Electronics and LG Electronics—
which also happen to be the world’s largest TV
manufacturers.
The two South Korean makers accounted
for 46% of total Ultra-HD TV shipments in
May, compared to a combined total of 45% for
the six makers of Chinese origin—Changhong,
Haier, Hisense, Konka, Skyworth and TCL.
Chinese TV brands are popular in their own
country but not overseas, and the challenge
facing them if they wish to increase global
market share is to boost quality, not just rely on
lower pricing, IHS believes.
Flat-panel televisions overall amounted to
18.1 million units in May, down 6.4% from
April but up 7% from the same time a year ago.
Of the total, LCD TVs—including Ultra-HD
sets—accounted for 17.4 million units, with
PDP TVs making up the remainder at 708,000
units.
In particular, plasma sets have been
enjoying higher-than-expected sales during the
first half of this year because of promotions tied
to the World Cup, but shipments are projected
to fall sharply now that the tournament is over.
8 ADVANCED TELEVISION
BT Sport wins
Formula E highlights
BT Sport is to televise extensive
highlights of all 10 rounds of the
2014/2015 FIA Formula E
Championship in the UK, joining ITV
– which has the live rights, in
providing coverage of the electric
single-seater car race series
inaugurated by motorsport’s
governing body.
In a deal brokered by the
international media company MP &Silva,
BT Sport will air a 60-minute
programme in the week after each race.
All shows will feature comprehensive
coverage of the race, together with a
round-up of the event’s practice and
qualifying sessions, plus all the latest
news, features and driver interviews.
Since its launch in August 2013, BT
Sport has established its commitment
to motorsport with coverage of
MotoGP, the FIA World Rally
Championship, World Series by Renault,
IndyCar and V8 Supercars.
Ali Russell, director of media at
Formula E, noting the deal was in
addition to a live coverage arrangement
with commercial free-to-air broadcaster
ITV, described it as “a bonus” for fans
in the UK as they now had not one but
two channels to watch the FIA Formula
E Championship. “BT Sport has really
hit the ground running with an ever
increasing number of subscribers and
world-class coverage.”
BT Sport channels are available
across various subscription platforms
including BT TV, the Sky Digital Satellite
Platform and Virgin Media, and, are
free for all BT Broadband customers.
BT Sport joins previously announced
broadcasters FOX Sports, TV Asahi,
ITV4, Canal+ and CCTV in China who
have all committed to showing live
coverage of Formula E races. The FOX
Sports deal alone covers 88 territories
around the world and a potential global
audience of 180 million households,
whilst TV Asahi boasts a household
reach of 51.4m.
ITV4 is available to almost 26.2m
homes in the UK with an estimated
weekly audience of 10.6 million. CCTV
is the principal state broadcaster in
mainland China with a network of 45
channels - the largest number of
television sub-channels in the world and a potential reach of 200,427,000
people.