75% of Home Theater Buyers research online

Three-quarters of recent television, audio, and home theater equipment purchasers ranked online product reviews and comments from other shoppers as having some or significant influence on their buying decision, according to the Fall 2008 Ad-ology Media Influence on Consumer Choice survey.

Consumers were also influenced by information from blogs, manufacturer, and store Web sites prior to buying.

The Ad-ology survey also indicates consumers consider quality, price, and availability the most important factors when purchasing TV, audio, or home theater equipment.

“Considering the importance consumers place on quality, it’s no surprise that product-review Web sites are a major influence on their purchases,” said C. Lee Smith, president and CEO of Ad-ology Research. “Manufacturer Web sites list technical specs, but consumer reviews give real-world experiences — what happens when you get the set home — that consumers feel they can trust.”

Despite doing online research for these products, the study shows 80.3 percent of consumers still prefer to purchase TV, audio, and home theater equipment in-person at a store.

The Death of HD-DVD

200px-Blu-ray_Disc.svg.jpgWell I was expecting format war that would never end but it seems that now Toshiba has pulled the plug on HD-DVD and Sony has won with Blu-Ray.

Just a few months ago it seemed that there would be plenty of competition between the Microsoft-Toshiba backed HD-DVD having it bundled as an addon to Xbox 360. The porn industry got a bit of press with their backing of the spec and there was word that cheap players were coming down the pipe. At the same time Sony was having a hard time winning the game console war with the new Playstation 3 against the Wii and Xbox 360 but the battle continued.

Over the last couple of months the press seemed to be pushing Blu-Ray but in my mind the cheap HD-DVD players on the market as well as WalMart selling only standalone HD-DVD seemed like enough that the major studios would have to go with the HD-DVD over Blu-Ray, but strangly a couple of studios mainly Warner last month went to Blu-Ray and everyone said that blu-Ray had won.

Nothing had changed over the last month and then last week there were a spate of announcements that in just a couple of days killed any chance for HD-DVD.

First NetFlix said they would go Blu-Ray by the end of the year
Best Buy said they would go Blu-Ray by the end of May
Walmart said they would sell only BluRay

And then there were rumors that Toshiba was going to pull the plug on the manufacture of HD-DVD drives. Rumor is enough to kill a technology and today HD-DVD is dead.

I am pretty happy actually that there is a decisive sinner in the HD disk market. There was a combo dirve planned a couple of months ago that was going to keep both formats alive but really why would we want two formats. I have not seen anything that tells me that one format is better then another, this is no Beta vs VHS part two and the support of two formats is not going to help anyone, manufacturers, studios or consumers so good news that a standard is here that everyone can coalesce around and offer cheaper media and Cheaper players. Also hopefully we will see more and more features as we have seen with DVD players over the last few years supporting MP3 and DivX.

Huge consumer audio spending forecast for this year

Online consumers are planning on emptying their pockets this year and spending $10 billion on home audio products, according to the Consumer Electronics Association. The $10 billion covers speakers, receivers, media servers and other home audio products.

The projections are based on the Consumer Electronics Association’s “2007 Audio Purchasing Study” which was designed to evaluate online consumers habits in purchasing home audio products such as Home-Theater-In-A Box (HTIB) systems, component A/V receivers and speakers.

Results indicate that consumers were more likely to make a purchase from a store that provided a product demonstration. Survey respondents said that demonstrations were so influential that it caused them to spend more money or purchase more products than they had originally planned.

“The data clearly shows that retailers who offer demonstrations have a greater chance of capturing the sale,” said Steve Koenig, CEA’s senior manager of industry analysis. “Home audio products sell best when they are heard-just as TVs sell best when they display compelling content.”

Audio sales have been lagging in recent years while sales of other consumer electronics segments have increased, including flat-panel HDTV displays. However the results of the study indicate that consumer interest in home theater and an overall trend toward more realism may be factors that help improve sales of home audio products in the future.

The “2007 Audio Purchasing Study” was conducted between November 27 and December 5, 2006. The study was designed and formulated by CEA Market Research using sales data, forecasts, consumer research and historical trends for the consumer electronics industry.