Changing Face of Home Entertainment Electronics
Oct 15, 2010
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In the ever-changing American home entertainment device market, more advanced TV, wireless home networks, and DVRs are hot, according to a recent Nielsen report, while satellite radio, VCRs, and DVD is on the decline.

Nielsen’s Q2 2010 Home Technology Report identifies technology trends based on a two-year trend review of self-reported survey data. Among the hot trends identified in the report:

• Upgraded TVs, with screen sizes larger than 41 inches and better resolution, are going into home theaters. HDTV sets have increased 26.9% and LCD flat screens are up 48.2% from Q3 2008 to Q2 2010.

• Internet access in the home rose 2.5% and broadband access rose 3.8% between Q1 2010 and Q2 2010. 85.3% of Americans have some kind of Internet access at home and/or work.

• Having a wireless network in the home increased 8.2% from Q1 2010 to Q2 2010 and 24% over eight quarters.

• Time-shifted TV viewing capability has become common, with 40% of U.S. homes now owning a digital video recorder (DVR). DVR adoption increased 14.5% from Q1 2010 to Q2 2010.

• 46% of U.S. homes now have at least one MP3 player, and Apple continues to dominate – 63% of homes with an MP3 player have an Apple iPod.

• Just 6 months since its launch on Apr. 3, 2010, Apple's iPad is in 3.6% of U.S. homes.

Not-so-hot electronics trends, according to the Nielsen report:

• Despite offering crystal clear audio, uninterrupted playlists, and anywhere access, Satellite Radio saw growth of just 5.5% in the past eight quarters.

• VCRs, unsurprisingly, are disappearing from U.S. homes. The movie studios are no longer releasing films on VHS. DVRs and DVD players provide greater functionality and better playback clarity and they're increasingly affordable. 70.2% of U.S. homes have VCRs now, Nielsen said, down from 78.5% in Q3 2008.

• DVD players are down 0.6% from Q1 2010 to Q2 2010. 87.9% of U.S. homes own a DVD player and Nielsen said its “hot” growth phase has long passed.

• PDA (personal digital assistant) ownership has declined 25.5% since Q3 2008 and the marker research firm expects that decline to continue, thanks to Smartphone popularity.

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