X

Year in review: Price drops make it a TV year worth watching

Prices plummeted below $1,000 mark for large plasma TVs, and viewers gained a multitude of avenues to tap into TV content.

4 min read

Year in review: TELEVISION

The Year in Review

Price drops make it a TV year worth watching

For TV viewers, 2005 was a "wow" year.

During the course of 12 months, prices on select plasma TVs fell below $1,000 on 40-inch screens, and viewers gained a multitude of avenues--from cell phones to iPods to TV shows on demand--for tapping into TV land.

"The big deal this year was the absolute plummeting of prices," said Eric Haruki, an IDC research manager.

Liquid crystal display TVs drove the across-the-board price cuts in big-screen TVs. LCDs, the pricier cousins of plasma TVs, dropped to an average of $2,500 to $2,700 for a 42-inch TV, Haruki said. That represents more than a 41 percent drop over last year's prices.

The drop in LCD prices stems from a glut of large panels.

"LCDs have gotten bigger, and now you can find them in a 40-inch size," Haruki said. "They now compete with plasma on both size and price."

To keep up with LCDs, some plasma TV makers have dropped their prices below $1,000, though the larger brand name makers continue to sell plasma TVs for roughly $2,500 to $3,000.

The morphing TV market also dominated changes in the entertainment industry this year.

TV networks and show producers teamed up with cellular carriers, portable digital media player companies from Apple Computer to toy maker Hasbro, and online giants such as America Online to mine new distribution deals for their content.

NBC, for example, struck a deal that lets consumers download 11 television shows from iTunes to their iPods or PCs for $1.99 per episode.

Other media player deals included Hasbro's deal with Cartoon Network and Nickelodeon, which lets people download cartoons for $1.99 to $2.99 per episode onto Hasbro's VuGo Multimedia System.

Cell phone carriers, meanwhile, are also jumping into TV. Verizon Wireless announced plans to use Microsoft's Windows Media software for its streaming-video service.

V Cast, Verizon's video-programming service, is geared toward offering access to video clips from networks such as VH1 and Comedy Central.

Telephone companies from AT&T to Verizon Communications are also searching for ways to segue into the TV services business as they face a loss of revenue from their core market to voice over Internet Protocol, or VoIP, services.

As TV shows become more readily available through devices other than the traditional TV set, pollsters and researchers may need to factor other media into their quests to track how much television viewers are consuming.

Politicians, too, are acknowledging the future of television. Under a last-minute compromise reached by U.S. House of Representatives and Senate politicians this month, all American households would have to ensure that their televisions can receive all-digital broadcasts by Feb. 17, 2009.

--Dawn Kawamoto

2005 Highlights

Yahoo offers content to set-top makers

Hoping to branch into consumer devices, Yahoo will let makers of cable and satellite TV set-top boxes license its content and services.
January 5, 2005

Sony PC doubles as TV

Latest Vaio desktop line includes PC that lets users watch their favorite TV show and send e-mail on the same box.
January 6, 2005

Texas Instruments revs up TV, theater

Chip maker Texas Instruments is working with TV manufacturers, bureaucrats, producers and movie theaters to promote high-definition programming and technology.
January 10, 2005

Verizon's salvo on cable TV

Phone giant's deal with NBC Universal is first step toward tackling cable providers head-on in the paid-TV market.
April 20, 2005

Digital TV changeover suggested for 2009

Farewell, analog. Politicians want to ban the sale of analog televisions soon--and set a firm date for all-digital broadcasts.
July 12, 2005

Gateway turns off the TV

Merger with eMachines and closure of Gateway stores had a lot to do with the decision, analysts say.
July 21, 2005

Digital TVs: More screen for less green

With prices for high-end TVs dropping, a 50-inch plasma, LCD or projection television set may be in your future
September 1, 2005

TiVo's CFO plans to step down

David Courtney plans to step down next April; the consumer unit head is also leaving, the company said in a regulatory filing.
September 30, 2005

Comedy Central taps broadband for the MotherLoad

The cable channel is launching a broadband video channel to extend its brand to its tech-savvy audience.
October 25, 2005

AOL says 'Welcome back' to old TV shows

Portal will offer free access to popular vintage TV shows via video-on-demand under a deal with Warner Bros.
November 13, 2005

Hasbro gadget to show downloaded Nick toons

Hasbro partners with Cartoon Network and Nickelodeon to provide downloads of TV shows via the VuGo toy.
November 14, 2005

TiVo-recorded shows soon viewable on iPod, PSP

Tech will build on TiVo's ability to transfer programs to PCs and DVDs.
November 21, 2005

NBC teams up with iTunes

Deal includes downloads of a wide range of programming--11 shows in all--for $1.99 per episode.
November 21, 2005

Home Depot buys into LCD televisions

Where can you buy a flat-panel TV? Nearly everywhere, including big-box stores and smaller regional retailers.
December 12, 2005

DVR technology comes to video iPods

New software and hardware allow TV watchers to record shows directly to their PCs ideo iPods and Sony PlayStation Portables.
December 19, 2005

Behind the headlines

 

Year in review: TELEVISION

The Year in Review

Price drops make it a TV year worth watching

For TV viewers, 2005 was a "wow" year.

During the course of 12 months, prices on select plasma TVs fell below $1,000 on 40-inch screens, and viewers gained a multitude of avenues--from cell phones to iPods to TV shows on demand--for tapping into TV land.

"The big deal this year was the absolute plummeting of prices," said Eric Haruki, an IDC research manager.

Liquid crystal display TVs drove the across-the-board price cuts in big-screen TVs. LCDs, the pricier cousins of plasma TVs, dropped to an average of $2,500 to $2,700 for a 42-inch TV, Haruki said. That represents more than a 41 percent drop over last year's prices.

The drop in LCD prices stems from a glut of large panels.

"LCDs have gotten bigger, and now you can find them in a 40-inch size," Haruki said. "They now compete with plasma on both size and price."

To keep up with LCDs, some plasma TV makers have dropped their prices below $1,000, though the larger brand name makers continue to sell plasma TVs for roughly $2,500 to $3,000.

The morphing TV market also dominated changes in the entertainment industry this year.

TV networks and show producers teamed up with cellular carriers, portable digital media player companies from Apple Computer to toy maker Hasbro, and online giants such as America Online to mine new distribution deals for their content.

NBC, for example, struck a deal that lets consumers download 11 television shows from iTunes to their iPods or PCs for $1.99 per episode.

Other media player deals included Hasbro's deal with Cartoon Network and Nickelodeon, which lets people download cartoons for $1.99 to $2.99 per episode onto Hasbro's VuGo Multimedia System.

Cell phone carriers, meanwhile, are also jumping into TV. Verizon Wireless announced plans to use Microsoft's Windows Media software for its streaming-video service.

V Cast, Verizon's video-programming service, is geared toward offering access to video clips from networks such as VH1 and Comedy Central.

Telephone companies from AT&T to Verizon Communications are also searching for ways to segue into the TV services business as they face a loss of revenue from their core market to voice over Internet Protocol, or VoIP, services.

As TV shows become more readily available through devices other than the traditional TV set, pollsters and researchers may need to factor other media into their quests to track how much television viewers are consuming.

Politicians, too, are acknowledging the future of television. Under a last-minute compromise reached by U.S. House of Representatives and Senate politicians this month, all American households would have to ensure that their televisions can receive all-digital broadcasts by Feb. 17, 2009.

--Dawn Kawamoto

2005 Highlights

Yahoo offers content to set-top makers

Hoping to branch into consumer devices, Yahoo will let makers of cable and satellite TV set-top boxes license its content and services.
January 5, 2005

Sony PC doubles as TV

Latest Vaio desktop line includes PC that lets users watch their favorite TV show and send e-mail on the same box.
January 6, 2005

Texas Instruments revs up TV, theater

Chip maker Texas Instruments is working with TV manufacturers, bureaucrats, producers and movie theaters to promote high-definition programming and technology.
January 10, 2005

Verizon's salvo on cable TV

Phone giant's deal with NBC Universal is first step toward tackling cable providers head-on in the paid-TV market.
April 20, 2005

Digital TV changeover suggested for 2009

Farewell, analog. Politicians want to ban the sale of analog televisions soon--and set a firm date for all-digital broadcasts.
July 12, 2005

Gateway turns off the TV

Merger with eMachines and closure of Gateway stores had a lot to do with the decision, analysts say.
July 21, 2005

Digital TVs: More screen for less green

With prices for high-end TVs dropping, a 50-inch plasma, LCD or projection television set may be in your future
September 1, 2005

TiVo's CFO plans to step down

David Courtney plans to step down next April; the consumer unit head is also leaving, the company said in a regulatory filing.
September 30, 2005

Comedy Central taps broadband for the MotherLoad

The cable channel is launching a broadband video channel to extend its brand to its tech-savvy audience.
October 25, 2005

AOL says 'Welcome back' to old TV shows

Portal will offer free access to popular vintage TV shows via video-on-demand under a deal with Warner Bros.
November 13, 2005

Hasbro gadget to show downloaded Nick toons

Hasbro partners with Cartoon Network and Nickelodeon to provide downloads of TV shows via the VuGo toy.
November 14, 2005

TiVo-recorded shows soon viewable on iPod, PSP

Tech will build on TiVo's ability to transfer programs to PCs and DVDs.
November 21, 2005

NBC teams up with iTunes

Deal includes downloads of a wide range of programming--11 shows in all--for $1.99 per episode.
November 21, 2005

Home Depot buys into LCD televisions

Where can you buy a flat-panel TV? Nearly everywhere, including big-box stores and smaller regional retailers.
December 12, 2005

DVR technology comes to video iPods

New software and hardware allow TV watchers to record shows directly to their PCs ideo iPods and Sony PlayStation Portables.
December 19, 2005

Behind the headlines