Consumers Luke Warm to 3D and Internet TVs

Accenture announced that it has published its 2012 Global Consumer Electronics Products and Services Usage Report.

For more information visit: www.accenture.com/ConsumerTech2012


Unedited press release follows:

Consumers Intend to Buy Fewer Televisions as They Migrate to Other Consumer Electronics Devices, Accenture Survey Finds

NEW YORK–Consumers intend to buy fewer televisions this year and fewer are regularly watching content on them, a new Accenture (NYSE: ACN) survey has found. Consumers are rapidly turning to other consumer electronics devices such as smartphones and tablet computers to view media, while also using more online services and downloading applications for various purposes, including entertainment. The findings are summarized in Accenture’s new 2012 Global Consumer Electronics Products and Services Usage Report (http://www.accenture.com/ConsumerTech2012).

The annual survey found that the percentage of consumers watching broadcast or cable TV in a typical week on televisions fell from 71 percent in 2009 to 48 percent in 2011. Consistent with this, the percentage of consumers who intend to buy a TV set during the next 12 months declined from 35 percent in 2010 to 32 percent in 2011.

“The battle for consumers’ eyeballs and time is intensifying, viewership continues to disperse, and we are starting to see the impact on the TV as a screen in the home,” said Mitch Cline, global managing director of Accenture’s Electronics & High-Tech Group. “Craving an always-on, always-connected lifestyle, consumers increasingly are using other consumer electronics devices in their daily lives to access the entertainment that only TV once provided. While consumers will no doubt continue to buy TVs, consumers’ preferences are shifting. They are rapidly substituting other screens, such as laptops, desktops, tablets and smartphones, to view media content.”

Smartphones and tablets
The research uncovered soaring growth in use of smartphones and tablets as consumers increasingly value mobility. More than half (53 percent) of survey respondents own a smartphone, up from 28 percent in 2010. Ownership of tablets climbed to 12 percent in 2011 from 8 percent in 2010. When consumers were asked about plans to purchase consumer electronics devices in 2011 and 2012, the story remained consistent. The percentage of respondents who plan to purchase a smartphone rose from 24 percent to 27 percent; for tablets, the percentage jumped from 8 percent to 16 percent. These consumer electronics devices are increasingly being used for entertainment purposes. For example, 44 percent of tablet owners stream media content, and 43 percent download applications at least once per week.

Online services and cloud computing
More than half (56 percent) of the survey respondents indicated they have changed their behaviors due to online services and cloud computing. Nearly one-third (32 percent) have stopped, or almost stopped, renting or buying DVDs; one-fourth (25 percent) share more personal content with family and friends; and 19 percent access their personal content from more devices than before. Three-fourths (75 percent) use an online mailbox, 37 percent play online games, and 26 percent stream media content. The younger generation (18-34 year olds) are even heavier uses of online services, with almost half (47 percent) playing online games and more than a third (36 percent) streaming media content.

Downloading apps
Nearly two-thirds (64 percent) of respondents indicated they download apps, usually from consumer electronics device manufacturers and software providers’ application stores. More than two-thirds (69 percent) use information applications (news, weather and sports); 58 percent use networking applications (social/professional networking); and more than half (56 percent) use entertainment applications (music, single or group games, and videos).

Television Pricing
Respondents were asked what would make them more inclined to buy a TV. More than half (55 percent) indicated they would purchase a television if the price was within their budget; 42 percent indicated a television with high-definition resolution was an important consideration. Only a quarter (25 percent) cited 3D functionality as a desired capability of a new TV. Likewise, one-quarter (25 percent) indicated they would be more predisposed to buying a TV if it offered the ability to connect to the web to access the Internet and personal content.

Methodology
Accenture’s online survey polled approximately 10,000 online consumers regarding usage and spending on 19 consumer electronics devices, as well as associated applications and services. The survey polled approximately 1,000 consumers in each of the following countries: Brazil, China, France, Germany, India, Japan, Russia, South Africa, Sweden, and the United States. The sample of respondents represents the general population in every country except Brazil, China, India, Russia and South Africa, where the sample is representative of urban populations. Survey findings regarding TV viewership falling focused on China, France, India, Japan and the United States. For a copy of Accenture’s new 2012 Global Consumer Electronics Products and Services Usage Report, go to www.accenture.com/ConsumerTech2012 .

About Accenture
Accenture is a global management consulting, technology services and outsourcing company, with more than 244,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$25.5 billion for the fiscal year ended Aug. 31, 2011. Its home page is www.accenture.com.