American Industry Overview: Household Audio and Video Equipment
This category includes establishments primarily engaged in manufacturing electronic audio and video equipment for use at home or in automobiles, such as televisions, video recorders and players, radio receivers and amplifiers, phonographs, cassette tape players, and compact disc (CD) players. This industry also includes companies that manufacture microphones, speakers, and public address systems.
In 2008 household audio and video equipment industry manufacturer shipment values were approximately $5.5 billion, the lowest of the decade and down from the previous year's total of $7.3 billion. This was an exceptionally mature market in the United States, with household penetration for products in this category hovering around 95 percent.
However, technological innovations boosted sales, with the successful introduction of a variety of digital products, such as high-definition television (HDTV) and digital video recorders (DVR). Consumers in the market for home electronic equipment in the early years of the first decade of the 2000s were already spending their disposable income on digital products, namely DVD players, which by 2007 exceeded the VCR for market penetration. Thus, manufacturers focused heavily on the digital market, including digital television and audio and video recording equipment. Because many products in this category become obsolete slowly, particularly in comparison to computer products, the large numbers of Americans who already own such equipment have few reasons to upgrade.