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Because television retailing mirrors that of audio and stereo equipment, for a discussion of market share leaders at retail see the audio equipment section.

Like computers, technological innovation in the recording and display of video images is a major driver for growth. DVDs are rapidly replacing videocassettes as the recording medium of choice for video images, thus motivating U.S. households to upgrade their video playback equipment to be compatible with DVDs.

Television too is changing with digital technology. The new flat- screen and plasma television display technology brings improved display of digitally stored images, as well as cable and satellite digital transmission. Consumers are also buying wide-screen television sets, enhanced with new sound technology that projects such a large image that consumers can re-create a movie theater experience in their own homes. As one focus group respondent explained: “My husband just bought a wide- screen television set. It was actually a practical purchase since we have had two television sets stolen in the past. My husband bought the big wide-screen television because thieves wouldn’t be able to get it out the door. We also have the only wide-screen television in the neighborhood, so it is a WOW when people come over. My husband likes to watch sports.” I suspect that television thieves have mastered the skill of stealing the much more expensive large wide-screen television sets, but this wife seemed convinced that her husband was making a practical decision when he bought the new set to enjoy the football games and show off to his friends.

A gender-neutral category, most households view expenditures in entertainment equipment as a joint purchase, so men and women are about equally likely to buy. This is a category of goods that tends to skew toward a more youthful market. As the age of the consumer increases, the likelihood that they will make a purchase of a television, radio, VCR, or DVD player decreases.

Black American households have a statistically significant increased purchase incidence, as compared with white or Hispanic households. Except for a spike at the highest income level, purchase incidence is fairly equal across the income ranges.

A key determinant of purchase of this category of products is household size and/or presence of children in the home. Households with three or more people and those with children are most likely to buy. Likelihood of purchase in this category cuts equally across education levels.

Key demographics of buyers of televisions, radios, VCRs, DVD players, etc.

• This is a gender-neutral category.
• Purchase incidence skews toward younger households.
• Black Americans are more active buyers.
• All incomes buy, but higher-income households buy more.
• * Households with children buy more.

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