Managing the Innovation Cycle
TV innovation has always been present, but each subsequent innovation gets reduced in price and margin more quickly. As a result, we’ve seen the pace of major innovation increase from every 2-3 years to a year or less. In 2010, three major TV innovations are set to take off; 3D TVs, LED backlights in LCD TVs and Internet connected TVs. All three offer a strong opportunity to offset the pace of price erosion while at the same time enhancing the value proposition of the TV itself. All members of the TV Ecosystem from component makers, to OEMs, to brands and even retailers need to be aware of the issues surrounding these innovations, as well as other potential new technologies, in order to get the most out of them and avoid yet another round of rapid devaluation.
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