More families turn to digital home entertainment

Sudibyo M. Wiradji, The Jakarta Post/Jakarta

Digital audiovisual equipment, such as Plasma and LCD TVs, or digital TV projectors, have gradually become must-have household appliances for well-to-do families.

Two or three years ago, such digital gadgets could only be found at star-rated hotels or plush offices.

"More affluent families have replaced conventional TV sets with Plasma TV sets because they seek quality home entertainment," said Budi Pramono, marketing manager of PT Samsung Electronics Indonesia, one of the Plasma TV and LCD players in the country.

Plasma monitors have screens that are perfectly flat, with no curvature whatsoever. The innovative design eliminates edge distortions, according to the U.S.- based magazine, Flat TV Buying Guide Review.

Plasma devices also have a higher resolution than conventional TVs, and are capable of displaying full HDTV and DTV signals, as well as XGA, SVGA and VGA signals from computer.

The thin width of these TVs contrast with the broadness of the monitors, which range from 40 inches to 70 inches, and as a plus, Plasma TVs can be mounted to a wall or ceiling.

With the digital audiovisual technology, offering wider screens and better picture quality, a viewer can enjoy video entertainment akin to first-class cinemas in the comforts of their homes.

The sophisticated Plasma TVs began to penetrate the local market three years ago, and demand for the audiovisual equipment has been on the rise, thanks to producers' aggressive marketing programs -- although the increase in demand has not been so significant over the past few months.

Local distributors often offer Plasma and LCD TVs as part of a home theater package comprising speakers, amplifiers and CD, VCD, DVD and MPX players.

This marketing strategy has proven to be more effective in attracting buyers, said Adijaya, head of PT LG Electronics Indonesia's Direct Sales Department.

"We have seen a slight increase in sales owing to the package," he said.

Higher sales is also attributed to increased demand from corporate buyers, such as entertainment centers, hypermarkets, malls, offices and hotels.

Like LG Indonesia, Samsung has also seen an increase in sales of Plasma and LCD TVs due to their home theater programs.

"Our sales in major cities like Jakarta, Surabaya and Medan doubled in 2004, compared to 2003," said Budi. "This is because quality home entertainment has become a need for high-end video enthusiasts."

Despite the increase in sales figures, the Plasma and LCD TV market remains small against the market for conventional TVs, and accounts for only 2 percent of the total TV market, which is estimated to reach 3 million units a year.

The largest market for Plasma and LCD TVs is the corporate sector, which contributes 70 percent of sales, with the remaining 30 percent attributed to household consumers.

A wide spectrum of Plasma and LCD TV brands are available in Indonesia, including Samsung, LG, Phillips, Sony, Panasonic and Sharp.

Electronics stores carry branded Plasma TVs at a price range of between Rp 54 million (US$6,000) and Rp 95 billion, and as such, have their own market segment.

However, more cheaper brands from China that carry price tags from Rp 5 million to Rp 10 million, are available in the local market. Local distributors predict the entry of the cheaper products would, sooner or later, cause prices of branded Plasma TVs to fall, although not significantly.

With Plasma TVs now available at more "competitive" prices, many middle-class families are also beginning to install the electronics equipment in their room for reasons of prestige.

"They don't care about the brand; the important thing for them is that they own a Plasma TV with a wide-screen monitor," Budi said.

The increase in the demand for high quality TV monitors from individual consumers has incited growing competition -- not only among Plasma TV producers, but also among cinematic TV projector manufacturers. Cinematic TV projector brands such as BenQ, Optoma and Toshiba can now be found easily in large electronics stores in major cities.

"We want to have a share in the market. Our cinematic projector provides an alternative in quality visual technology for high-end video enthusiasts," said K. Pitet Sim, assistant manager of PROVISION, the country's sole distributor of Taiwan- based BenQ projectors.

BenQ came onto the global high-end home theater scene last year with the launch of their Digital Light Processing (DLP)- based cinematic projector, BenQ PE8700, which was introduced to the Indonesian market four months ago.

The BenQ PE8700's screen ranges in size from 100 in. to 300 in., a monolith compared to Plasma TVs.

"Even though the market segment for cinematic projectors is small, we feel confident that if we continue to educate the market, more people will turn to cinematic projectors when it comes to home theaters," Sim said, as a home theater projector was more flexible in terms of placement.

"The screen can be installed anywhere, indoors or outdoors. And the projector is portable, weighing less than 7 kg," he said.

Cinematic projectors are clearly for an exclusive market, as the 300 in. BenQ PE8700 carries a whopping price tag of $6,100.

However, with such a variety of high-tech audiovisual equipment encroaching the market, it may not be long before every household has a home theater to rival any cinema -- hopefully, without the annoying jingle of some stranger's cellular going off in the middle, and their answering the call.