Posts Tagged ‘LG 4K TV’

4K, Collapsing Prices, and the Declining Importance of Hardware

As I write this, the 2015 season of the National Football League is about to get underway, with last year’s Super Bowl champion New England Patriots taking on the Pittsburgh Steelers. If you’re not a football fan, why should you care?

Simple: Football, more than any other sport or event, drives the sale of televisions. And the TV business is in a major funk right now.

According to IHS’ latest survey of the global television market, worldwide shipments of TVs fell an astounding 8 percent Y-Y during the second quarter of 2015. Even though LCD TVs now account for almost 99% of all TV shipments, “…LCD TV sales have not made up for the lost volume of cathode-ray tube (CRT) and plasma televisions, which have largely left the marketplace.”

The one bright spot? 4K. The IHS report states, “4K TV was a bright spot in the global TV market, with unit shipments growing 197 percent year over year in Q2 2015, to reach 6.2 million units. The growth in 4K TVs is the direct result of increased price erosion and more affordable tiers of 4K models becoming available.”

I’ve written on numerous occasions that we’re on the cusp of an industry switchover from 1080p resolution to Ultra HD (3840×2160) for precisely this reason, plus the fact that it’s becoming increasingly difficult to make any money on the manufacturing and sales of 1080p-resolution LCD panels. That’s part of the reason that Sharp – once the premier brand of LCD televisions – finally threw in the towel and exited the North American television business, selling their Mexican factory and “Sharp” brand to Hisense.

Need proof? Check out the most recent HH Gregg and Best Buy circulars. You can now buy a 48-inch Haier 1080p LCD TV for $298 or a 60-inch LG 1080p smart TV for $898. Want Ultra HD resolution instead? Samsung’s got a curved 55-inch smart model for $1198, and a 60-inch smart set for $1498.

Samsung has slashed the prices on its new S-line of HDR Ultra HDTVs by as much as 20%.

Samsung has slashed the prices on its new S-line of HDR Ultra HDTVs by as much as 20%.

But here’s the kicker: Samsung’s HDR Ultra HDTVs (S-UHD) are almost the same price. A 50-inch model (UN50JS7000) is tagged at $1098 by HH Gregg, while the 55-inch version is $1298. Too expensive? Sharp’s got a 43-inch Ultra HD offering for $598, a 50-inch set for $748, and a 55-inch version for $848. (Not to be left out, LG has cut the price on their 55-inch smart Ultra HDTV to $998, and they’ve also got a 49-inch UHD set for $798.)

Now, step back from that mass of numbers, and think about this: Those are insanely low prices for Ultra HDTVs, which were tagged around $15 – $20K when they first came to these shores in 2012. I know of several friends and acquaintances that had to replace older TVs recently, and every one of them bought an Ultra HD set because of these falling prices.

If overall sales of TVs are falling but 4K TV sales are increasing, it doesn’t take a weatherman to see which way the wind is blowing: 4K and Ultra HD are rapidly taking over the TV marketplace for sets larger than 42 inches. This is happening so quickly that by the end of next year, ALL TVs larger than 50 inches will be Ultra HD models.

There’s a bigger message here. The money isn’t in hardware anymore – it’s moving to software. I find it hard to believe that I would spend more in a year for cable TV and Internet service than the cost of an Ultra HDTV, but that’s exactly what’s happening. Content is king, and who cares about the hardware?

So, why are TV sales in decline? It could be for a very simple reason, and that is the average household has a large-enough TV with enough bells and whistles that they see no reason to upgrade. If you already own a 55-inch or 60-inch 1080p set with “smart” functions ( and the all-important Netflix streaming), then the speed of your Internet connection is much more important than adding another 5 inches in screen size or quadrupling your screen resolution.

There’s a corollary in the world of tablets, where sales and shipments are also slowing down much faster than analysts predicted. There are any number of reasons why, but the two most likely culprits are the shift in preferences for larger smartphone screens (“phablets”) and the fact that people just hang onto tablets longer (at least, until their batteries die), often passing them down to children or off to relatives when a new model is purchased.

This shift to 4K and Ultra HD resolution is also impacting the commercial AV industry, which is heading for some serious interfacing issues. More and more of the large displays that will be installed will have Ultra HD resolution. And that will create a major headache for integrators, as the predominant interface for pro AV is still HDMI 1.4, even though version 2.0 was announced two years ago.

None of this is good news for the projector manufacturers, who are struggling to defend their turf from the large, cheap LCD displays. Unlike panel manufacturers, projector brands are moving slowly to adopt 4K resolution, which isn’t surprising because of the cost involved to tool up and manufacture microdisplays with 4K resolution and the much smaller market for projectors.

As for the naysayers who still think 4K is a fad, I would just advise them to wake up and smell the coffee. The world of consumer electronics absolutely drives the world of commercial AV – what’s happening over there is going to happen here, and that means you as an integrator will be installing more and more displays with UHD resolution; from desktop monitors and TVs to single-panel and tiled wall-mounted displays.

Count on it!

 

 

 

The 800-pound gorilla just bellowed…

On Tuesday, September 23, Vizio officially launched its new P-Series of 4K (Ultra HD) televisions at an art gallery in Chelsea, NY.

These televisions weren’t a secret to anyone who attended CES w-a-y back in January. Vizio caused a bit of a stir by announcing five “smart” LCD TVs with direct LED backlighting that would retail at prices considerably lower than Sony, Samsung, LG, Sharp, and pretty much anyone else except the Chinese brands (TCL, Hisense, etc.)

But whereas those selfsame Chinese TV brands don’t get much respect from the general public and big box retailers, Vizio is different. They’ve been around for over a decade, and they have a track record of market disruption. Vizio has done so well selling TVs in the U.S. that they sponsored the Rose Bowl this year and also had a crew go out and shoot original 4K footage on a Red camera to be used for demos. Vizio is also going to license Dolby’s high-dynamic range process for upscale monitors and TVs.

Vizio's event was staged in a gallery and featured

Vizio’s event was staged in a gallery and featured “moving art” by Louie Schwartzberg.

 

The New York City event was minimalist, consisting of demos of each model hanging on the wall like artwork and showing 4K clips. In three back rooms, Vizio demonstrated (a) its superior motion blur-correcting technology compared to a Samsung 4K TV, (b) its lower black levels compared to the same Samsung TV (and lack of color tint artifacts by using full array, direct backlight illumination), and higher contrast ratio and improved shadow detail.

I’ve been to enough side-by-side demos that I’ve learned not to believe anything I can’t verify on my own, but the Vizio sets did look impressive. What was even more impressive, however, were the prices: The 50-inch P502ui-B1 retails for $999, while the 55-inch P552ui-B2 will sell for $1,399. That’s $600 less than the current price for a comparable 55-inch LG Ultra HD TV.

Vizio also has a 60-inch model (P602ui-B3) for $1,699 and a 65-inch version (P652ui-B2) for $2,199. The line is rounded out with a 70-inch Ultra HD set, the P702ui-B3 for $2,499. That last price is $500 lower that what I heard at CES, so there’s already been some market-tweaking.

All of the P-series Ultra HD TVs use full array LED backlighting.

All of the P-series Ultra HD TVs use full array LED backlighting.

 

At least one Vizio model P552ui-B2) uses IPS LCD glass, while the rest employ MDA LCD. Vizio claims this provides better black levels than Samsung's PVA LCD panels.

At least one Vizio model P552ui-B2) uses IPS LCD glass, while the rest employ MDA LCD. Vizio claims this provides better black levels than Samsung’s PVA LCD panels.

 

Readers with reasonably long memories will recall that Sony’s and Samsung’s inaugural Ultra HD sets were priced close to $3,400 for 55-inch models and $4,400 for 65-inch versions. (Sony’s sets also use quantum dot backlights, something Vizio is not pursuing at the moment.)

But if you pull out the latest Sunday paper inserts from Best Buy and HHGregg, you will see that Samsung and LG have both slashed their prices considerably, perhaps in anticipation of Vizio (who, ironically, is now a featured brand at Best Buy!).

The Vizio sets are already designed to support 4K streaming from Netflix and Amazon Instant Video, and customers of the latter service will be able to buy or rent 4K content from UltraFlix for streaming. As for inputs, all five TVs come with four HDMI 1.4 connections and one (just one) HDMI 2.0 port. That last one is a puzzler, since the HDMI 2.0 standard has been out for a year already.

I was told by Vizio that these new sets support HEVC H.265-coded material, but I’m not sure if they are decoding in hardware or their own software. The lone HDMI 2.0 port is also fully compliant with HDCP 2.2, a controversial amendment to the HDCP standard that will cause some serious backwards-compatibility problems with older TVs, 4K models included.

So – here we go with the Ultra HD price wars. Samsung, Sony, and LG are nearing the end of an intensive 4K education campaign at their stores (which, I must say, the majority of salespeople I encountered did a very good job with), timed perfectly with the fall college and NFL football season.

Now, here comes Vizio to steal their thunder and benefit from this campaign without having contributed a dime to it. Research by Nielsen and other companies has consistently shown that Americans just want “big, cheap TVs.” I’m not sure if that applies also to 4K, but if so, Vizio is ready and willing to deliver. It will be very interested to see how the “Big 3” TV brands respond to this challenge and what price cuts will result over the next couple of months. Stay tuned…