6th Ave. Electronics Exec Grades Industry’s 3D TV Launch a ‘D’

The report card is in and 3D TV has received a grade of “D” from 6th Ave. Electronics, Vice President of Store Operations Tom Galanis told attendees at the “3DTV 2011: What’s Next” event in New York Thursday. The industry “could have done a better job” launching 3D, Galanis said in a keynote, by standardizing active-shutter 3D glasses so they work across TV brands and selling 3D as a feature rather than as a separate category. “It should have been presented to consumers that they were buying a higher performance set that was capable of 3D,” he said. Lack of content also affected the ability to present a complete package to consumers.

3D bundles, including exclusive 3D Blu-ray discs such as Avatar for customers who buy Panasonic TVs and Alice in Wonderland discs for Sony customers, aren’t helping the limited content situation, Galanis said. “I don’t think it’s good for the industry,” he said, saying people don’t like to be “dictated to.”

Customers shopping for 3D TVs typically audition two or three models, Galanis said, and choices are typically “brand-driven.” That contrasts with consumers shopping for standard TVs who tend to be more price-driven, he said. Consumers shopping for 3D TV have gravitated to larger screen sizes, he said. “The problem with 3D,” he said, “is that you can’t be more than 30 degrees off-axis,” so larger screen sizes offer wider viewing angles he said. He said plasma TVs have been more popular with consumers than LCD due to wider viewing angles and smoother picture from faster refresh rates and improved phosphor technology.

Industry projections of 3.8-5 million 3D TV sales in 2011 are “a little high,” Galanis said, saying the success of 3D TV rests largely on the ability of regional retailers to sell consumers on the experience. If 3D TVs can withstand price compression and if it’s “profitable to spend 20 minutes with a consumer to demonstrate the advantages” of 3D, they can be successful, Galanis said. At a high-volume retail store where 3D TV “is not demonstrated properly and there’s no conversation,” he said, “it would be a little more difficult to sell 3D sets.”

Although glasses remain an issue, especially lack of standardization among glasses, Galanis said, “you can overcome the glasses in a good demo.” But customers have to be drawn into the demo, he said, saying sales won’t derive from “someone going up to a demo and putting glasses on.” Passive glasses aren’t the answer, Galanis said, regarding reports of some TV makers planning TVs that use passive glasses for 2011. “I think it could only hurt us,” he said, citing performance, resulting market confusion and the negative effect on the standardization process for active glasses. With market pricing of after-market glasses well above $100 currently, Galanis said $50-$60 would be a more acceptable price point. Currently, he said, aftermarket 3D glasses sales are “not so good” due largely to consumers staying with the brand. Universal 3D glasses that work across brands “could help” sales, he said.