Buzzword: Are "derivative" TV models a good buy?

If you’re on the hunt for a discounted TV during the holiday shopping season, you may come across some model numbers you haven’t seen in our TV Ratings (available to subscribers) or anywhere else, even from major brands. These TVs are known as "derivatives," and they generally differ from the standard models in a manufacturer's line. Because the derivative sets are lower-priced, they typically have lower specs and lack some features found on standard models.

There are several reasons why manufacturers offer these sets. One is that it allows them to hit specific retail price points during promotional shopping periods, something they couldn’t do with standard models. This lets bigger-name companies compete on price with lesser-known secondary or tertiary TV brands without disrupting pricing for their standard models. A company may also use derivative models to get their brand into a new channel of distribution—say, a mass merchant such as Walmart or a warehouse club like Costco—without upsetting their more mainstream retail partners. Since the model numbers, and usually, specifications, are different, shoppers can’t directly compare the models sold in these different types of retail outlets.

As we mentioned in a previous post, we’re already seeing some derivative LCD models from Samsung—LN-B400- and B500-series sets —and Sony (KDL-L504- and S504-series sets). Last year, Panasonic also offered a few derivative models that were sold only during the holidays.

The question, of course, is whether these TVs are good deals. We haven’t been able to review the specs on these sets yet, but last year some of the derivative had lower claimed contrast ratios, fewer inputs, and were missing some features, such as on-TV photo viewing.

Derivative models typically sell for at least a few hundred dollars less than standard models, but in this season of ultimate volatility, it's hard to pin down pricing. We can't comment specifically on the performance of derivative models because we test standard products that are available widely, and not limited to specific promotional periods or retailers. However, you can use our Ratings of LCD and plasma TVs to see how similar sets from these manufacturers have performed.

If you’re considering one of these derivative sets, one thing we’d recommend is to check the manufacturer’s warranty, and see if it differs from the standard warranty on sets this size. Also, check the retailer’s return policy for a set that’s not defective—it’s possible that it might be different on a promotional model, with fewer recourses if you simply don’t like the set and the way it performs.

We’ll continue to monitor HDTV prices and new derivative models throughout the holiday shopping season, so check back with our blog regularly until Christmas. And we’d love to hear from those of you who’ve purchased a derivative model to see how happy you are with your choice. —James K. Willcox