Survey shows more consumers to buy bigger TVs

Source: Consumer Reports National Research Center Holiday Poll 2009

It may sound trite, but it’s true: TV buyers are embracing the concept that bigger really is better. About 57% of the consumers planning to buy a TV intend to get one with a 40-inch or larger screen, and many of those buyers (22%) have their sights set on a 50-inch or larger TV.

That’s what we discovered in our latest holiday survey, in which 21% of the 1,000 consumers surveyed said they’d be buying a TV during or after the holidays. Last year, shoppers had more modest aspirations—only 47% were looking at 40-inch and bigger TVs. The steady drop in big-screen prices over the past year could well be the reason more viewers aspire to live larger.

Screen size isn’t the only thing driving purchases, though. Better picture quality with high-def resolution was the biggest reason buyers are willing to spring for a new TV, cited by 77% of those planning to buy a TV. The appearance of the TV also comes into play: 71% want a set that takes up less space than the one they have now or that can be wall-mounted, and just over half said they were looking for a more attractive design.

Where will these new TVs fit into the household? About 70% of buyers are replacing an older TV that is not a flat panel, 36% are buying an additional flat screen for another room, and 20% are upgrading an older flat-panel set.

In some cases, envy is the motivating factor: 37% of the respondents said they want a new TV because their family or friends have one. (The men surveyed were more likely than the women to keep up with the Joneses, 42% vs. 32%. Gee, that’s a surprise.) There was even more of a gender gap in another case: 38% of men polled want a new TV for a sporting event such as the SuperBowl, while only 24% of women voiced the same sentiment.

Some surprises as California adopts new TV power standards

The controversial regulations by the California Energy Commission (CEC), requiring all TVs sold in the state to meet new energy-efficiency standards, have mostly drawn the expected reactions, with energy-conservation advocates generally lining up behind the proposal and manufacturers opposing it. But the measure has also drawn some reactions that aren't necessarily predictable, and may point to an interesting and nuanced debate to come as the impact of the regulations, for California and the country, are assessed.

The CEC estimates the new energy-consumption threshold, set to go in effect in 2011, will save $8.1 million over 10 years.“The real winners of these new TV energy efficiencies are California consumers who will be saving billions of dollars and conserving energy while preserving their choice to buy any size or type of TV. Californians buy four million televisions each year and they deserve the most energy efficient models available," said Energy Commission Chairman Karen Douglas.”

On the whole, as expected, the Consumer Electronics Association, one of several industry groups which opposed the regulatory proposals, criticized the CEC’s actions:

Black Friday specials: Bundles of joy, or retail sales trick?

One way retailers can bump up their average sales ticket while still offering savings for their customers is through bundling, or offering savings when you buy several items—say, a TV bundled with a Blu-ray player or sound system—as an assembled package.

Based on what we’ve seen so far, this is a tactic Walmart and some other retailers, such as Best Buy, will be using as part of their Black Friday strategies. This week, for example, Walmart’s pre-Black Friday sales include several TV-based bundles. One $698 package combines a 40-inch 1080p LCD TV, a BD-Live Blu-ray player, and a 2.1-channel sound bar, all from a brand called Viore, which is sold primarily through Walmart (although we’ve also seen it at the company’s Sam’s Club warehouse outlets).

If you’re more comfortable with a better-known TV brand and can live with a standard upconverting DVD player, there are two Vizio bundles, each of which provides a choice of TVs in two screen sizes. One package combines either a 37- or 42-inch 1080p Eco-series (VO370M, VO420M) LCD TV, at a price of $677 or $767, with an RCA-brand DVD home theater system and an HDMI cable. These TVs are selling separately on the Walmart website for for $547 and $648, respectively.

A different bundle packages the RCA DVD home theater system with either a 42-inch 1080p LCD (model SV420M, $888) or 47-inch 1080p (model SV470M, $1,074) and an HDMI cable. Both of these TVs have 120Hz technology to help reduce motion blur, plus the HDMI cable. Vizio sells these TVs separately for $797 and $997, respectively.

TV power usage on trial in California

How much juice can your big-screen TV suck up? California will become the first state to tackle that issue this week if the state’s energy commission approves a proposal to limit the amount of energy TVs can use. Given the Golden State’s track record as a trendsetter, the impact could eventually be felt far beyond its borders. Not surprisingly, the proposal has sparked heated controversy, particularly about plasma TVs, which have been painted as power hogs. Opponents argue that the measure would mean less choice and higher prices for consumers, effectively banning the sales of hundreds of big-screen models.

California’s proposal would require a 33 percent improvement in average efficiency for TVs with screens up to 58 inches sold in California in 2011 and a 49 percent improvement in 2013. By the state’s reckoning, more than 1,000 TVs, including several dozen plasma TVs, already meet the 2011 standard, and about 300 LCD sets—but no plasmas—already qualify for the tougher 2013 rules.

Manufacturers, retailers, and other industry groups have sharply criticized the measure. The Consumer Electronics Association (CEA) argues that California hasn’t factored in recent advances in TV efficiency, instead relying on data from years back, when many TVs—especially plasma sets—were more power-hungry. The group points out that the energy efficiency of Energy Star-compliant TVs has improved by 41 percent over the past two years, and points out that many Energy-Star-compliant sets would not meet California’s 2013 guidelines.

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.

Plasma or LCD TV? I vote for plasma

“No one would buy a plasma TV anymore, would they?” Financial journalist Joe Kernen posed that question to a tech-stock analyst on CNBC’s Squawk Box program Monday morning. The analyst didn’t answer Joe directly, but instead started touting LED TVs—a marketing term for LCD sets that use LED backlighting—as the wave of the future. (The exchange happens around minute 3:30 of the CNBC video clip, embedded below.)

Well, I’d like to answer Joe’s question about plasmas directly, with a resounding YES! Many consumers (including me and a number of the experts who test TVs for Consumer Reports) have bought plasma TVs. I, for one, will vote with my pocketbook once again. I plan to buy a second plasma TV with a bigger screen (my current set is 42 inches, and my room is big enough for a 50-incher). As our tests show month in and out, the best plasma TVs have excellent picture quality, certainly as good as any LCD set’s and perhaps even better. In our judgment, and that of other experts in the field, plasma TVs can display depth and richness that result in a more dimensional, cinematic look than on most LCD TVs, including those pricey new LED-backlit models.

Plasma TVs also have advantages that no LCD can match. Perhaps the most significant is their unlimited viewing angle, which means everyone in the room can enjoy the same great picture quality from any viewing position. With almost all LCD TVs, the picture quality can be great from head on, but it deteriorates as you move away from dead center, so the screen can look washed out or dim, or colors can shift, sometimes dramatically. (For more, see "Viewing angle still the Achilles heel for most LCD TVs."

HDTV deals: Watch for doorbuster specials and “derivative” models

We’re always excited in the weeks leading up to Black Friday, the traditional three-day shopping period right after Thanksgiving. It's become almost a sport seeing how low prices on TVs will go—and what "doorbuster" deals we'll miss out on when we decide that it’s just not worth getting up before dawn to try for one of the limited-quantity offers.

Although it’s still early in the deal-hunting season, several Black Friday sites, such as BlackFridayInfo and GottaDeal, have already posted what they claim are Sears’ and Kmart's Black Friday ads. Walmart also jumped the gun with a series of weekly specials leading up to Black Friday. Amazon's now also doing something similar (in its Gold Box), apparently matching some of Walmart's deals.

A quick review of the promoted models we've seen so far doesn’t reveal any “gotta have” deals. But we have noticed some nice price cuts on several major-brand models, which this year dominate the Sears ad, for example.

Even Samsung’s 6000-series LED-backlit LCD TVs are making an appearance in Black Friday ads.

For example, a 42-inch 1080p Panasonic plasma, the TC-P42S1, s listed in the Sears ad at $650, or $150 less than in our plasma TV Ratings. An LCD set,  Samsung's LN46B650, which is priced at $1,450 in our Ratings, will be on sale for $1,310. An LED-backlit model, the Samsung UN40B6000, which is listed at $1,500 in our Ratings, is sale-priced at $1,400 in the ad. We're all about saving a hundred dollars or more, but it’s not the kind of savings that would drag us out of a warm bed on a cold morning—especially knowing that everyday TV prices seldom rebound to pre-Black Friday levels once those sales are over.

In fact, Kmart's ad has Panasonic' s TC-P42C1 set, a 720p model, listed at $550. That's the same price I saw the TV this weekend at Target as part of a "pre-holiday" sale.

Walmart joins the "Why wait for Black Friday" club

Joining the likes of Sears, which jump-started the traditional Black Friday holiday shopping period with pre-sales that started last weekend, this Saturday Walmart kicks off one week of special savings on everything from a $5 turkey to a $500 TV.

Starting on Saturday November 7th at 8 a.m., Walmart stores will offer a variety of deals, including its first one-week electronics savings event. Items include Sharp LCD TVs ($498 for 42-inch set, $698 for a 120Hz 46-inch model, and $898 for a 120Hz 52-inch set), a 46-inch 1080p Panasonic plasma TV, and a $148 Sony BDP-S360 BD-Live-ready Blu-ray player. Other deals include $200 Microsoft's Xbox Arcade systems, which come with a $100 Walmart gift card, and a $298 HP notebook computer with Windows 7.

For those looking for more elemental fare, Walmart is offering a complete Thanksgiving meal, including a 12-pound turkey, for $20. For complete information about special deals and price roll-backs, plus store locations, visit Walmart's Christmas Shop Web site. —James K. Willcox

5 hot electronics gifts flagged by Consumer Reports Holiday Shopping Poll

Electronics are again at the top of a lot of gift lists for the coming holiday season, according to the results of a Consumer Reports Holiday Shopping Poll released this week.

Here, are the five hottest electronics gifts, listed in order of respondents’ intentions to give them. I’ve added some reasons why they’re hot at the moment and, for some, details on the kind of people who are buying them:

• Video games and accessories. Planned as gifts by 28 percent of respondents. In a year where many people plan to cut back, as other survey data underlines, these are gifts that cost a lot less than most hardware. Nearly half of households with kids under 12 are planning such purchases, but so are nearly a quarter of homes with no such youngsters—underlining that games and extra Wii nunchucks aren’t just being bought for kids anymore. It helps that some of the hottest game titles of the year appeal equally to young and old players—notably Beatles Rock Band.

• Video-game consoles. Planned as gifts by 14 percent of respondents, including 25 percent of homes with kids under 12. With no new versions of consoles out this year, and the economy softening, prices have dropped for most brands. Also, after two seasons in which getting a Nintendo Wii consoles required military-level planning, the promise of its wider availability may be prompting some Wii holdouts to plan a purchase. (See our video buying guide for game consoles.)

Holiday Headstart: The electronics deals are starting early

It’s never too early to start planning for a major electronics purchase during the holiday season—and it may make more sense than ever this year.

Traditionally, the season’s first (and often best) blowout sales on electronics are on Black Friday, the day after Thanksgiving. But in anticipation of tightfistedness among electronics consumers, retailers are already cutting prices sharply, as many analysts have been predicting since early in the fall.

We’ll track some of the pre-season deals in a series of "Holiday Headstart" posts in the coming five-or-so weeks that lead to the bird and Black Friday. First up, our audio-video specialist Jim Willcox will blog on some of the enticing early offers on Blu-ray players and flat-panel TVs. We’ll also offer buying tips and in other product areas, too.

Meantime, where are you at on your buying plans? Are you already planning your purchases? Share your thoughts with us below. —Paul Reynolds