Flat panel TV sales to overtake CRT sets

Consumers are switching to flat panel televisions, leading to phasing out of CRT (cathode ray tube) TV sets from the market. However, sales of LCD (liquid crystal display) and LED (light emitting diode) TVs are yet to beat sales of CRT TV sets at their peak. While in 2011, the industry sold some 11 million CRT TVs, in 2014 sales of LCD and LED TVs together were 10 million.

According to the Consumer Electronics and Appliances Manufacturers' Association (CEAMA), the number of TV sets sold in 2011 was 15.5 million compared to 14.5 million estimated sales in 2015. Both years hosted major cricket events, the ICC cricket World Cup and the Indian Premier League (IPL). Experts say although sales of LCD and LED TV sets have grown 28 per cent annually in the last five years, flat panel TVs are yet to replace CRTs completely.

Sachin Rai, head of the Bravia business at Sony India, agrees. "A shift is on from CRTs to flat panel TVs," he said.

Sanjay Chitkara, business head, home entertainment, LG Electronics India, said, "CRT TVs had a huge base, as they were available for a long time before and during the availability of LCD/LED TVs. Hence, in the initial phase of transition from CRT to LED, the total volume of CRT TVs was larger than the LED market of the past few years." According to Rai, customers who can afford to buy CRT televisions at a price range of Rs 4,000-5000 are not entirely shifting to flat panel TVs as "the segment is super price sensitive". And since panels comprise 60 per cent of the cost of television sets, manufacturers cannot decrease prices to bring them on a par with CRT TVs.

However, lower sales of TV sets have not impacted the industry's revenue. Between, 2009 and 2015, the industry's revenue has grown 16 per cent annually to Rs 68,100 crore from Rs 25,700 crore.

The industry is expecting flat panel television sales to overtake CRTs this year driven by high demand during the ICC cricket World Cup and IPL.

"This year, television sales witnessed an increase in demand of about 15-20 per cent," said Manish Sharma, president of CEAMA and managing director of Panasonic India. Rai and Chitkara estimate the growth during the cricket season at 30-40 per cent.

"Since the transition is almost complete and major players are only selling LED TVs, we are witnessing a continuous upward shift in demand and sales for the whole flat panel industry. In 2015-16 demand for LED flat panels is set to overtake the combined demand for CRT and LCD sets," Chitkara said.

Price reduction and easy finance have helped increase sales of flat panel TVs. "LCD and LED TVs will completely replace CRT sales by 2016," an executive with a consumer durables company said. He did not wish to be named because he is not authorised to comment on the issue.

Ernst & Young estimates the TV industry's revenue will touch Rs 1,30,500 crore by 2020.