World Cup may rescue TV makers
Print Edition
WITH a hopeful eye on the approaching World Cup, Japan’s embattled TV makers are hoping the key to their rescue can be found on the second floor of Bic Camera’s downtown Tokyo outlet.
Sales of big-screen televisions with super-high definition 4K technology are picking up at the nationwide electronics retailer, and their fatter profit margins are offering a lifeline to one-time industry giants Sony and Panasonic.
“Many customers are coming to buy a new TV set because of the World Cup,” said Daisuke Kogure, visual products floor manager at Bic Camera’s Yurakucho outlet.
Last Monday, a consortium of major Japanese broadcasters, TV manufacturers and communications firms began test broadcasts of satellite television programs in 4K across the country of 128 million, with some World Cup games set to be shown.
The move comes with Tokyo’s backing as it looks to boost the competitiveness of the world’s number three economy.
Sony president Kazuo Hirai recently pointed to the ultra-high-definition technology as a possible saviour for the company’s money-losing TV unit, which has bled about 790 billion yen (US$7.8 billion) over the past decade.
Panasonic and Sharp have both said they will boost their lineup of 4K televisions and computer monitors.
But persuading enough consumers to embrace the cutting-edge technology could still be a struggle. Sales of 4K-equipped TV sets remain a small fraction of sales of LCD flat screens.
“The success of 4K television will depend on the richness of its content,” said Eiji Mori, analyst with Tokyo-based research company BCN.
“So far what’s available is just test broadcasting, and it’s unclear when private broadcasters will start supplying 4K-quality TV programmes,” he added.
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