Tuning In: Online Television Sales in the US Industry Market Research Report Now Available from IBISWorld

Share Article

Although Online Television Sales industry revenue has grown substantially in the past five years, online TV retailers have faced some challenges. A drop in per capita disposable income caused revenue growth to slow in 2009 as many Americans refrained from purchasing expensive discretionary goods. In addition, the industry continues to face external competition from brick-and-mortar stores that provide customers with product advice in person as well as from electronic devices, such as computers and tablets, that can stream TV content. As disposable income continues to expand in line with economic recovery and online retailers expand their customer service capabilities and free shipping promotions, demand and revenue are projected to grow. For these reasons, industry research firm IBISWorld has added a report on the Online Television Sales industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Consumers cut spending on big-ticket items during the recession, hampering TV sales.

The Online Television Sales industry has grown substantially in the past five years as consumers have rapidly shifted toward shopping online. Every year, more than 100 million Americans purchase goods from the online retail marketplace, one of the fastest-growing industries in the United States. Furthermore, as traditional retailers (i.e. brick-and-mortar) have entered the online realm to recapture sales taken from retailers that sell exclusively online, industry revenue has only expanded. In the five years to 2012, IBISWorld estimates industry revenue will grow at an average annual rate of 10.1%. “This growth trend will continue as per capita disposable income increases and consumers become more confident in buying big-ticket items online,” says IBISWorld industry analyst Mary Nanfelt.

Although Online Television Sales industry revenue has grown substantially in the past five years, online TV retailers have faced some challenges. A drop in per capita disposable income caused revenue growth to slow in 2009 as many Americans refrained from purchasing expensive discretionary goods. In addition, Nanfelt says the industry continues to face external competition from brick-and-mortar stores that provide customers with product advice in person as well as from electronic devices, such as computers and tablets, that can stream TV content. Despite these challenges, profit has continued to grow because of stronger supply chains and expanding economies of scale for online TV retailers, especially major players Amazon.com, Best Buy, Newegg and Systemax. The online TV sales industry has a moderate level of market share concentration since small companies make up a large share of the market. It is not very costly to start an online store, and minimal skills are required.

The industry will continue to thrive in the next five years as disposable income continues to expand and online retailers expand their customer service capabilities and free shipping promotions. Many of the same factors that contributed to the industry's ascent in previous years will carry forward over the next five, including the rising acceptance of online shopping. The industry will face a looming threat of regulation regarding sales tax, though, and a change in regulation could reduce industry profit in the coming years. For more information, visit IBISWorld’s Online Television Sales report in the US industry page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

This industry retails TV sets via the internet. Industry goods are typically purchased from domestic (in some cases international) manufacturers and wholesalers, and then sold to the public online.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

###

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
IBISWorld
+1(310) 866 5042
Email >
Visit website