INTRODUCTION
During the last years home entertainment equipment has significantly increased its density in the household. The launch of new and attractive technologies, such as flat panel TV’s, high definition DVD players or game consoles, and also price deflation has boosted sales volumes, moving these and many other products from the luxury consumer to the mass market.
Giving an overall view of the UK market, electricals were the fastest growing major retail from 2006 to 2007[1], with brown goods, section in which the devices previously mentioned and many others considered on this project are included, accounting for 43.8%[1] of the whole electrical market composition in 2006.
It is remarkable the key role of audiovisuals regarding this phenomenon, as they are the largest subsector in the electrical market, accounting a share of 22.1% [1] in 2007.
Even though these figures are already showing a change in the way home entertainment equipment reaches our homes, the situation is likely to keep on changing, with higher penetration values during the upcoming years, next generation consoles and Blu-Ray DVD players are still to reach their peak sales rates, and they are ment to be the key drivers of market growth over the next five years[2]. In additon to this, flat panel TV’s, both plasma and LCD, will keep on breaking into our homes, as the process of analogue TV transmissions being turned off is set to be completed by 2012 [2].
This growing trend in terms of popularity and penetration of home entertainment equipment will keep on increasing in the same way people are heading for a more luxurious living space.
In order to evaluate the effects of this phenomenon, three different situations of home entertainment equipment will be analyzed. These situations will be characterized by the type of devices used and their penetration levels, including a future situation characterized by a rational usage of the devices.
[1] Verdict, “UK Electrical Retailers, 2007”
[2] Verdict, “UK Retail Futures, 2011”