Super Bowl: 'The gift that keeps on giving'

updated 5:31 p.m. ET Jan. 11, 2006

MINNEAPOLIS - For TV shoppers and sellers, Super Bowl XL is Christmas II.

While shopping for most consumer electronics peaks around Christmastime, the Super Bowl on Feb. 5 sends the holiday season into overtime for TVs.

"The NFL and the college bowl season is the gift that keeps on giving for us," said Randy Baumberger, president and chief operating officer of Ultimate Electronics, a retailer with 32 western U.S. stores.

The holiday selling season is still the company's largest. But while sales of digital cameras and audio equipment drops off after Christmas, television sales stay strong in January. And the broadcast of NFL games in high definition can provide the extra incentive to upgrade sets.

"You probably have to go back to the transition between black and white and color to see what we're seeing today," Baumberger said of the booming sales of digital TVs.

TV shoppers won't have any trouble finding a place to buy.

"You can now buy TVs at supermarkets and office superstores, not to mention Costco and Wal-Mart," said Paul Semenza, vice president of display and consumer research at TV parts-tracker iSuppli Corp. Even Home Depot and clothing retailer Kohl's have been selling LCD TVs.

Sales of the 10 best-selling models of televisions in January 2005 were $875.9 million, higher than 8 of the 11 preceding months, according to data from the NPD Group, Inc. And analysts say many sports-related TV sales are made in December right after Christmas.

George Creighton, operations manager for a Circuit City store in Rockville, Md., says it's not uncommon for shoppers to wait until game day. On the morning of Dec. 18, when the Redskins played the rival Dallas Cowboys, his store sold three high-end TVs to people who wanted a better set for the game.

Because big sporting events are often the main reason people buy high-def televisions, retailers heavily promote TVs during January, said Eric Haruki, an analyst at IDC.

There are other factors, too.

Microsoft Corp.'s new video game console, the Xbox 360, displays games in high definition, and Sony Corp.'s Playstation 3 will, too, when it goes on sale later this year.

Analysts differ on how much the video game consoles influence sales, though Microsoft Chairman Bill Gates asserted last week that nine out of 10 Xbox 360 owners have a high-definition television or plan to get one.

Falling prices are helping, too. Thirty to 34-inch LCD TVs sold for an average of $2,379 this time last year. That has dropped to $1,566 now, said Semenza of iSuppli. TV shoppers can thank innovations from Asian manufacturers.

Screen-makers are also figuring out how to handle larger pieces of glass, which means they can make plasma screens more efficiently and charge less. For example, a TV maker would have paid $676 for a 32-inch screen in January 2005. By December that had fallen to $544, Semenza said. Prices are expected to keep dropping.

Print this Email this Blog this  IM this

MORE FROM BUSINESS OF SUPER BOWL

Business of Super Bowl Section Front

Super Bowl ads were a bunch of fumbles Suicide-prevention group: Pull GM ad Snickers pulls ad over homophobia charge Why does America condone mouse abuse? Voters love Blockbuster advertisement Interactive: View and vote on XLI's best ad What ads needed? More has-beens please No Super proposal — but still a proposal Dungy, Rhodes going to Disney World Amateurs ads get Super treatment Business of Super Bowl Section Front   Add Business of Super Bowl headlines to your news reader: