H-P Tablet Sells After Price Is Cut

Hewlett-Packard Co.'s decision to drop the price to as low as $99 for its TouchPad tablets touched off a weekend buying rush that the company called "overwhelming."
The sudden interest came after H-P said it was discontinuing its tablet and smartphone efforts, after disappointing sales and unfavorable comparisons to Apple Inc.'s iPad and iPhone. H-P cut the price of its least-expensive TouchPad to $99.99 from $499.99. The price on a greater-capacity version was reduced to $149.99 from $599.99.
The Palo Alto, Calif., company said it is still exploring alternatives for webOS, the well-regarded software that powered the TouchPad.
H-P's decision to jettison remaining inventory at rock-bottom prices instantly became the talk of the technology press. Blog posts were quickly published with rolling updates containing lists of stores and online sites where the device was still available.
Demand was so heavy that by Sunday, the website slickdeals.com was filled with "sold out" notices in red next to such popular retailers as Amazon.com, B&H Foto, Fry's Electronics, Target and Walmart.
A saleswoman at a Best Buy Co. store in San Francisco said all the TouchPads in the Bay Area were sold out by Saturday night.
Eager customers scouring retailers turned their attention to stores that hadn't yet dropped the TouchPad's price, and reported multiple calls with sales representatives and methods for getting the price reduced. "If you buy at full price, they will price match in 10 days to their own store if price drops," a person wrote about Barnes & Noble Inc. The retailer still was charging $407.95 for the TouchPad, of which slickdeals estimated there were 14,000 in stock. Barnes & Noble wasn't available for comment.
Other consumers debated whether the device was a good value even at the lower price. "They are utterly worthless now," a person commented on a cnet.com article about the sale. "Amen," responded another.
Others disagreed, starting a Twitter campaign called "#saveWebOS" with pleas to keep the platform going and tweets from customers who had been awaiting H-P's next generation smartphones and tablets. "My dreams are dashed," said a Twitter user who called herself Cheryl. "Thanks (for nothing) @HP."
—Justin Scheck contributed to this article.

Millennials Watch More TV Online

Young media consumers -- Millennials -- continue to consume much more television related to online, and less traditional television than other viewing groups.
Only 26% of millennials -- typically those in the 18-29 age group -- watch more than 20 hours a week of TV, versus older viewing groups where 49% of those viewers watch 20-plus hours a week. These are among the results of a study conducted by Kansas City-based marketing company, Barkley, in partnership with Service Management Group and The Boston Consulting Group.

Millennials are much more likely to watch shows mainly on their laptops -- 42% versus 18% for other viewers; on DVR playback -- 40% versus 36%; or via video-on-demand -- 26% versus 18% for other viewing groups.
Largely as a result of TV marketing and other efforts, millennials -- more than older consumers -- are aware of youth-targeted cause campaigns. For example, the study says that for Dove's Campaign for Real Beauty, their awareness level was 33% versus 21% for everyone else. Gap's RED campaign earned a 26% number for millennials versus 9% for other consumers.
Much of this activity comes from greater exposure to campaigns through social media -- 40% versus 22% for other consumers -- and online news, 28% versus 22%.
"Since the Millennials generation is larger than the Baby Boomers and three times bigger than Generation X, marketers' understanding of Millennials' needs, tastes and behaviors will clearly shape current and future business decisions," says Jeff Fromm, senior vice president, Barkley, in a release.
The survey was based on more than 5,000 respondents and 3.9 million data points.

Tablets, Smartphones Changing Media Consumption

Tablets and iPhones are fundamentally changing the way people get their entertainment, and they may eventually make those DVD players, GPS and other single-use electronic devices obsolete.

According to a new survey of more than 1,400 consumers by research agency Chadwick Martin Bailey (CMB), people are using their smartphones and tablets for a variety of entertainment outlets, from games to watching movies and television. According to the research, more than half of smartphone and tablet users play games on their device. As a result, nearly two-thirds of tablet owners are using other devices (particularly portable gaming devices) less for this purpose.
Similarly, two-thirds of tablet owners are using their devices to watch feature-length movies. With further tablet adoption, the stand-alone DVD player may become obsolete, says Chris Neal, vice president of CMB's tech and telecom practice. With just over a quarter (26%) of U.S. adults saying they expect to purchase a tablet in the coming year, that development could come relatively quickly, he says.
"As people get more tablets, these devices are an endangered species," Neal tells Marketing Daily. "Those specialty devices do one application really, really well. Now you've got a device that does multiple things."
Even worse are the prospects for stand-alone GPS systems. According to the research, 80% of tablet and smartphone owners have used their devices for mapping and directions. Of these users, nearly 90% of them said they are using other methods such as a standard GPS less. "Some, like TomTom, have already placed their bets and said they're not a device manufacturer anymore -- they're making software only," Neal says. "It will be one of many [GPS-type] apps on an iPhone or iPad."
For every downside, however, there is an upside. On the whole, the increasing prevalence of tablets is leading to more content consumption overall, the agency reports. "The majority of tablet owners are watching full-length movies, TV shows, in addition to standard Web videos," Neal says. "It's carving into standard TV time a bit, but it's increasing the amount of time people are watching in general, which is good for media companies."

Netflix insists people still see value despite price increase

Online movie streaming firm admits some users likely to cancel service in wake of price hike.

Netflix Inc. spokesman Steve Swasey told MarketWatch Thursday that the company realized that "some people would be concerned" about its decision to raise the price for a combination DVD-and-streaming video plan to $15.98 from $9.99, and that a certain number of customers would cancel service. Comments on Facebook and other places across the Web have been overwhelmingly negative since the increase was unveiled earlier this week. However, he said, there remains a "silent majority" of subscribers who think the $15.98 price point still represents "a pretty good value." In addition, Swasey continued, the price increase was necessary to help satisfy U.S. DVD customers."We have streaming-only in Canada, and it would have been very easy to eliminate DVD service in the United States. But by making these changes, we were able to keep DVD a viable option for people who still want that format in the U.S." This doesn't mean, however, that Netflix doesn't care about consumers who are upset about the price move, he added. On a lighter note, he said:"I made a comment to someone, on background, that the $6 difference between the old and new prices is the equivalent of a couple of cups of latte. And that's gained a lot of traction. I've received a bunch of hate mail, because people thought Netflix was being insensitive to people who don't drink latte. That's not the case at all. I'm not a coffee drinker, and my wife drinks regular joe." Netflix shares are down 3.2% Thursday.

Better Business Bureau: Consumers Need Security Systems

The Better Business Bureau (BBB) is telling consumers to be wary of an increased residential burglary this summer, advising consumers to purchase a professionally-installed alarm system.

"According to the FBI, the summer months of July and August have the highest rates of burglaries," says the Bureau, adding that homes without alarm systems are 2.2 to 3.1 times more likely to have a break-in.

Also, homes with alarm systems average $400 less in property loss than homes without alarm systems that have break-ins.

In 2010, BBB received nearly 25,000 inquiries from customers asking about burglar alarm systems. The Bureau goes on to offer this advice:

• Do your research when picking a home security system and don't get pressured into buying a system from a door-to-door salesman. "Homeowners should research local companies carefully and thoroughly before they buy a system that doesn’t offer the protection they were after.”
• Choose a professional installer
• Contact at least three companies
• Ask about all charges up front
• Know the ins and outs of your contract
• Insist that the installer "walk" you through your system until you fully understand how it works

More Than 500 Million Connected TVs Worldwide By 2015: Forecast

Television manufacturers will ship 138 million connected TV units worldwide in 2015 -- with more than half-billion connected TVs having shipped by then -- up from about 60 million in 2011, according to an updated forecast from research firm DisplaySearch.
This year, more than 25% of all flat-panel TVs shipped are expected to have some form of Internet connectivity, growing to 47% of all flat-panel TVs shipped in 2015, DisplaySearch said.
In 2015, 35% of 46-inch or larger TVs in North America will be "smart TVs," according to the research firm. DisplaySearch defines "smart TVs" as being able to: retrieve content from the Internet independently of a portal; provide intelligent search and recommendations; let users upgrade them; and network seamlessly with other devices in the home.
An increasing number of connected TVs will include wireless support to be able to deliver content to devices such as smartphones and tablets in the home. According to DisplaySearch's forecast, more than 98 million TV sets with 802.11 wireless networking built-in will ship in 2015.
"Wi-Fi technologies are the foundation of smart TVs," DisplaySearch director of TV electronics research Paul Gray said in a statement.
DisplaySearch's "Quarterly TV Design and Features Report" includes forecasts for video processor and signal processing integrated-circuit market development including 120/100 and 200/240 Hz frame rates. DisplaySearch is part of NPD Group, a provider of consumer and retail information and research for a range of industry sectors.

3DTV Price Drop Could Spur Purchase Interest

The price of 3D televisions could drop markedly by the holiday season, but that still may not be enough to make the technology, which faces a host of other challenges, will catch fire with consumers.
According to consumer electronics shopping site Retrevo.com, the price differential between 3DTVs and flat-screen HDTVs could drop to $150 by November, down from its current differential of $400 and significantly lower than the $900 premium found during the holiday season last year. According to Andrew Eisner, director of content for the site, price is the biggest barrier to consumer adoption for the technology. And a lower premium for the TVs could increase demand.
"In all of the surveys we've done, price comes in as the number one reason people don't buy 3DTVs," Eisner tells Marketing Daily. "All things being equal, what we're saying is that consumers will go for [3DTVs], even if it's only for the odd movie or sporting event."
Even with the price coming down, however, there are still several obstacles to widespread consumer acceptance, not the least of which are content availability and the price of accessories such as glasses. In April, the NPD Group reported consumer awareness of LCD 3DTVs increased to 36% in February 2011 from 28% in September 2010. At that time, the market research company also noted that with the decline of price premiums for the devices, inhibitions over purchasing accessories such as glasses increased.
And though the content picture is improving (particularly with networks such as ESPN offering full-time 3D outlets), consumers are still wary of bringing the technology into their homes.

"Sporting events are a fun experience, [but] we're still waiting for the next 'Avatar," Eisner says. "3DTV is in an interesting place. If anything's going to [move it forward], it's going to be price. But I'm not going to go out on a limb and say it's going to push it over the edge. Consumers are still not that hot on it."