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People are switching to smaller HDTVs


screen flat panel TVs looks to be getting smaller.
According to data released by the research firm, Pacific Media Associates, the share of the TV market for 30 to 34-inch L.C.D. TVs jumped to 24 percent in February from 16 percent in January.
That move was at the expense of larger sets.
Market share sales for 45 to 49-inch L.C.D. TVs dropped to 14 percent from 18 percent and the 40- to 44-inch L.C.D. and plasma segment moved to 18 percent from 20 percent.
The reason, according to Alfred Poor, Pacific Media Associates' senior research associate, is obvious: it's the economy.
“I imagine that a lot of home equity money went into HDTVs,” Mr. Poor said. “Many consumers do not have the income to buy an HDTV, and more of them no longer have the credit.”
By shifting to smaller-sized models, consumers are saving hundreds of dollars. In February, the average 40 to 45-inch set cost $1,287, according to Mr. Poor. But the average price for a 30 to 34-inch model was almost half that, $685.
“That's about the size of the federal incentive check,” Mr. Poor said.
One interesting counterpoint to the shift to smaller and cheaper sets is that the biggest TVs, those 50 inches and above, have not seen a drop in sales.
Mr. Poor believes that's because wealthier consumers who spent $5,000 for a 40-inch HDTV five years ago now see a 50-inch set as a relative bargain.
But even with the renewed interest in smaller size HDTVs, consumers are still paying much more for a TV than they ever dreamed possible, when picture tube sets were just about the only game in town.
At the beginning of this decade, the average selling price for a standard-definition 34-inch picture tube TV was around $400.
“We've asked consumers to triple the price they pay for a TV. It's amazing that people have been paying this much.” __


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