The economic downturn could serve to grow the market for home entertainment as consumers save money with a night in front of a new flat panel TV display.
Research from Futuresource Consulting backs up conventional wisdom that during times of economic hardship expenditure on consumer electronics and in-home entertainment can whether the storm and potentially even grow market share.
Sarah Carroll, director of strategy and continuous services at Futuresource Consulting says the “Staycation” attitude is highlighted by research from the economic slump of 2001 when digital cameras and DVD players continued to grow sharply.
“Rather than going on vacation or dining out by candlelight, consumers see the purchase of hot new ‘must have’ electronics items like Blu-ray players, flat panel TVs or smart phones as a far better value-for-money option. The tangible benefits of these products can be enjoyed for a long time to come and are seen by many as essential items once consumers begin the retreat into their living rooms.”
Futuresource warns that pay-TV operators may still experience spindown as cash-strapped subscribers look carefully at their channel bouquets. However, the company is positive about the role of the PVR as subscribers look to get the best value from their packages.
The Futuresource conference The Changing CE World takes place in Barcelona on November 10-11, 2008.
