OPINION: Mixed Year
By Paul Sweeting -- Video Business, 12/31/2008 10:24:00 AM
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And in fact, the mood at this year’s gathering is likely to be just this side of gloomy.
Overall, retail sales were off 5.5% and 8%, respectively, in November and December compared to the prior year, while electronics sales plunged a vertiginous 26%, according to data from SpendingPulse and MasterCard Advisor.
The Consumer Electronics Assn., the show’s sponsor, reported last week that its own index of consumer expectations for technology spending showed a 13% drop in November compared to the same month last year, while overall expectations dropped 2.1%.
Purchases over $1,000 have taken the biggest hits, according to CEA, a category that includes many big-screen HDTV sets.
Research firm iSuppli projected that sales of HDTV sets will have actually declined for the first time in 2008 when all the data are in.
The dip in HDTV sales could have a ripple effect as well, impacting sales of other high-def devices, such as Blu-ray Disc players, HD DVRs and other HD set-tops, as well as digital cable and satellite service upgrades.
If you believe the pundits, the economy isn’t likely to show much of a turnaround until the end of 2009, which could make the new year a long and not very happy one for the industry.
Read the full column on ContentAgenda.com
