This trend can be attributed to a series of interlocking factors. At its core is, on the one hand, the ongoing retail price collapse in the TV sector – the segment of traditional entertainment electronics with the highest sales volume and revenue. German consumers are increasingly keen on cutting-edge technology, such as OLED or Mini-LED devices and very large screen diagonals of 75 inches and up – however, tough competition is putting pressure on prices, making it extremely difficult to monetize technological upgrades, which are thus barely able to offset the decline in demand by volume. On the other hand, the TV and audio systems purchased during the boom years of 2020 and 2021 are characterized by high product quality, sophisticated technology, and exceptional durability. To incentivize new purchases, the industry is focusing on larger screen sizes and new display technologies. Key innovations lie in the ongoing optimization of the system, picture quality, and audio integration. Thanks to the use of AI, the viewing experience improves significantly even when TV broadcasters do not support new standards. 4K has long been an established standard for devices and movie productions, while the majority of TV broadcasters have still not made the leap from HD to UHD even after nearly 10 years. A market launch strategy – for HDR for example – by established broadcasting groups would provide a clear incentive for consumers to upgrade their devices sooner and would lead to a significant surge in demand, but such a strategy is not currently on the horizon.

Added to this is a generational shift in media consumption. Younger target groups, in particular, tend to consume streaming and gaming content or music primarily on their smartphones, tablets, or high-performance gaming PCs. By offering very large displays, powerful sound systems, and movie and gaming services integrated as apps, manufacturers are therefore making entertainment electronics more appealing to young media users.

Ultimately, the current consumer propensity to save also affects the entertainment electronics sector. This tendency can be attributed to the general financial strain on households and geopolitical uncertainties: Households are managing their budgets with more restraint. When choices have to be made, urgent purchases of vital household appliances – such as washing machines or refrigerators – take priority over investments in less essential entertainment devices.

In the future, differentiation through the premium segment, a very distinct brand strategy, or highly emotionalized, lifestyle-oriented product concepts will become increasingly important for traditional entertainment electronics. The trend toward “ambient intelligence” is also positioning the consumer electronics industry for new target groups.