Digital Signage: LCD Panels Dominate the Market as Crts Experience a Rapid Decline
If there were any doubt left that flat panels have become the dominant display technology, replacing big, heavy cathode ray tube (CRT) technology, the latest findings and forecast from DisplaySearch in Austin, TX, should put those questions to rest.
In its Q3 ’07 “Quarterly Worldwide Flat Panel Forecast Report,” the display market research specialist reveals that CRTs will account for 5.5 percent of all display revenue in the quarter compared to TFT LCDs, which will generate 84.5 percent of all display revenue. In dollars that’s $20.3 billion for LCD panels to $1.3 billion for CRTs worldwide.
Granted LCD technology finds homes in lots of applications far removed from digital signage –like mobile phone displays- so there is a bit of an apples-to-oranges comparison here. After all, how would you clip mobile phone with a CRT display to your belt?
Regardless, in the areas related to digital signage, LCD panels continue their skyrocket-like trajectory. Shipments of LCD TV panels rose 32 percent quarter over quarter and 64 percent year over year to 19.4 million units in the second quarter of this year, according to DisplaySearch. As might be expected, the average unit price for LCD panels fell three percent quarter over quarter and 16 percent year over year in the second quarter.
For those planning digital signage networks, that’s an important point. LCD panel pricing continues to fall meaning a significant portion of the cost of their networks is declining. Those savings can translate in a variety of potential benefits, including:
Broader reach: For those contemplating expansive networks, lower panel prices can translate into greater reach. Savings can be spent on more panels to accomplish the network’s primary mission or to fulfill secondary and tertiary goals. For instance, a digital signage network originally envisioned as an advertising play could be expanded with strategically placed signs to satisfy wayfinding needs or serve as reader boards for conference rooms.
Bigger signs: Rather than expand the number of signs in a network, savings can be used to acquire larger signs or multiple signs used in combination to create greater impact.
Better content: Savings resulting from lower panel prices also can be used to improve content played back on the network. Not only can the savings be used to improve the production quality of video, graphics and other visual elements, but they also can be used to add an entirely new dimension to the network’s presentation. For example, the addition of weather instruments to sense temperature readings can be used to trigger weather-appropriate content. In a retail store, specific weather conditions could trigger the digital signage media server to playback sunscreen ads or ear muffs.
Not too long ago, TV sets connected to VCRs or DVD players dominated what was the precursor to today’s digital signage market. However, as the DisplaySearch numbers reveal CRT sales are trailing off, replaced by what is quickly becoming the omnipresent LCD panel.
Consumers are voting everyday with their dollars for LCD TVs, and as they do are creating a mass market with mass market economies of scale that benefit those who are developing digital signage networks. Choosing wisely how to use those savings can take the success of their digital signage networks to new heights.
About the Author
David Little is a digital signage enthusiast with 20 years of experience helping professionals use technology to expand their marketing messages with alternative media. Visit http://www.keywesttechnology.com and find how you can expand your marketing horizons. For further insight, download my free white paper Six Basic Applications for Digital Signage. This paper focuses on applications for the hospitality industry, which are applicable to every industry. And while you are browsing our web site, sign up and take advantage of our free weekly Webinars that give you hands-on experience with our digital signage software.
Preston Trail, Forney – Digital Video Tour
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