Thin is In

Flat-screen TVs are hot and getting hotter.

Their success demonstrates that customers are willing to spend far more than most people in the consumer electronics industry ever imagined. If a product addresses their true needs and concerns, they are more than happy to pay.

With big-screen rear-projection TVs, the concern was always the size of the cabinet. Flat-screens almost entirely eliminate that concern. Think of it this way: if a 475 sq. ft. condo in New York City sells for $250,000, that makes each square foot worth $526.00. A 40" RPTV would occupy a minimum of 6 sq. ft. of floor space. In this scenario, those 6 sq. ft. are worth $3,156.00 - probably more than the price of the TV. Fuhgeddaboudit.

To a great extent, high-definition technology and flat-panel sets arrived at the same time. Many consumers see the two as synonymous. It's easy for industry insiders to deduce that the success of flat panels indicates an appreciation for technical performance. Next year's models are sure to have more pixels, increased brightness and a host of other innovations because of this perception.

The reality is quite different. On the retail sales floor, the question most frequently asked when a person approaches a flat panel TV is "Is this a flat TV?" Second question is, "When are prices coming down?" Nothing too technical there. As to the set's performance, most observe that plasma sets are exceedingly bright and that the brightness is consistent over a wide viewing angle. I honestly believe that the person's perception of improved image quality (we're assuming that the set does have a good image on the screen) is much like the typical response to an IMAX presentation. Ask departing theater-goers their opinion of the IMAX image and 95% will be unable to stammer out anything beyond the fact that it was big.

The thin cabinet is almost a byproduct of plasma and LCD technology, but, trust me on this one, the space saving aspect is the hook - not the technology.

The flat-screen makes everyone happy. The guy gets his big picture, the wife doesn't have to tolerate the big box and even the decorator is smiling because he doesn't have to find a piece of furniture the size of a Sub Zero to conceal a television set. With detente established among all parties, the retailer is free to ring up a list of speakers, processors, cables, surge protectors and brackets so very essential to the overall project. Sweet.

You'd think that this was top-secret information, not yet available to product designers. Surround sound is forging ahead from 5.1 to 6.1 to 7.1. Where does it all end? Are there really that many 25-year-old guys out there anxious to add two more channels?

Technophiles dismiss systems that consolidate surround sound into one controller and two speakers, but that is exactly what most consumers want. If we in the electronics industry want other products to enjoy the overwhelming success that we've seen – and will continue to see - in the flat-screen market, we need to design products that fit agreeably into the living room rather than wait for the customer to build a room big enough to accommodate current ones.

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