NPD: Soccer a Savior to Brazilian TV Market22 Jul, 2013 By: Erik Gruenwedel
With the World Cup soccer tournament and Olympic Games in Rio de Janeiro slated for the summers of 2014 and 2016, respectively, the host Brazilian TV market is projected to get a notable assist from the quadrennial soccer event in the near term, according to new research from NPD DisplaySearch.
Following two years of declining TV shipments, the 2014 World Cup is expected to support a double-digit rise in shipments, according to NPD’s report on the region. TV shipments declined 11% from a year ago to 2.1 million units and the current full-year 2013 forecast is expected to decline 2% year-over-year.
The World Cup will be the first of two high-profile sporting events to impact the CE industry during the next few years, with unit shipments rising 18% in 2014, as the 32-nation tournament begins. The final transition from analog to digital TV broadcasts in Brazil by the end of 2016 will also keep demand from falling in 2015 and, in conjunction with the Olympic Games, will slightly boost demand in 2016.
“Both [events] are expected to be strong drivers of demand,” said Paul Gagnon, director of North American TV research for NPD DisplaySearch. “The country is also firmly in the middle of a transition from analog to digital TV broadcasts, which has proven to be a driver of growth for TV shipments in other regions.”
The current softness in TV shipments for Brazil — which accounts for approximately 5% of global TV shipments — reflects the recent weakness in retail sales, due to rising inflation and economic pessimism.
NPD said cathode ray tube (CRT) TV sales are declining at a rapid rate, with LCD shipments also down in the first quarter. While overall demand so far this year has been soft, growth in large screen sizes (46” and larger) remains strong, indicating upper-tier consumers in the market for higher-priced products might not be feeling as much economic pressure. Korean brands continue to dominate unit sales, led by LGE and Samsung, which comprised nearly 50% of all Brazilian TV shipments in Q1.
“Brazil remains one of the most dynamic and rapidly growing TV markets in the world; however, the market is very event-driven and cyclical,” Gagnon said. “Upcoming major sporting events in the country, combined with strong economic progress, should lead to increased business opportunities in the television market.”