TV sales jumped in 2010 but buyers waited for 3D

NEW YORK (AP):

People are buying a lot of televisions but mostly passing on 3D, according to a report released this week.

According to the research group DisplaySearch, TV manufacturers sold 247 million TVs worldwide in 2010 - a 17 per cent increase over the previous year - when the world was embroiled in the worst of the global downturn.

But while TV sales were strong in Europe and Japan, in the US consumers remained too spooked by the recession to splurge on a new set for most of the year.

"As unemployment remains high and consumers remain sensitive to price, budget-conscious consumers have been surprised by limited price declines," said Paul Gagnon, director of TV research in North America at DisplaySearch, adding that manufacturers chose to add premium features such as 3D displays and Internet connectivity instead of slashing prices.

In all, manufacturers were only able to sell about 3.2 million 3D televisions, which can cost more than US$1,300. A high-definition television with an LCD screen can be had for less than $300.

But slow sales cannot be blamed entirely on high prices - there is just not enough 3-D content yet for consumers to watch. It will take more three-dimensional movies, TV shows and games for shoppers to justify the price of a 3D TV, analysts say.

Another content problem: Some popular 3D movies are initially sold packaged with 3D glasses - gear people with the special TVs already own. For instance, people can't buy Avatar by itself, but they can purchase the movie as part of a $350 kit from Panasonic Corporation that includes two pairs of glasses.

"TV manufacturers really got ahead of themselves in 2010, and they forgot that a TV is a tool to watch content," said Paul Gray, director of TV electronics research at DisplaySearch.

The future may see more 3D content if DisplaySearch's forecast is any indication. The research group expects sales of 3D TVs to reach 91 million in 2014.