advertisement
 
 Print    Email     Bookmark     Share

Can Panasonic save plasma?

By David Carnoy, CNET.com

With Japan's Pioneer and US-based Vizio recently announcing their exits from the plasma market, there's been a lot of chatter about the technology's short- and long-term viability. Some of plasma's problems are PR related. Lingering questions--justified or not--about burn-in and energy efficiency have become part of the public conscious and remain a stumbling block at point of sale. Ultimately, however, there are more simple economics at play. Far more factories are available to produce LCD TVs than plasmas which haven't been able to maintain their price advantage as margins have eroded and the performance gap between the technologies has narrowed.

But let's not dwell on how we got here. The key question is how can plasma survive? And for better or worse, the answer is really in the hands of Panasonic, the brand that has most closely linked its TV fortunes to the technology. Yes, Samsung and LG make lots of plasmas--and some good ones, too--but both are also well-committed to LCD and well-hedged should plasma go away (Panasonic makes some LCD TVs as well, but nothing larger than 37 inches, while plasma starts at 42 inches). Alas, with Pioneer's departure--a sad day for those who value great TV picture quality--Panasonic is left to carry the plasma mantle largely on its own.

Can it keep plasma from perishing? Well, I hope it can, because the TV space is already commoditized enough and it would be shame if we went down to one flat-panel technology (sure, OLED is being hyped as the display technology of the future, but it's years away from mass-market adoption). However, Panasonic's got to take make some key moves to keep plasma from running out of gas. Here they are:

1. Beat prices for LCD TVs in key size classes.

Right now, the most important sizes in plasma are 42, 46, and 50 inches, and it's imperative that Panasonic maintains a price advantage in those sizes. The problem is, according to an industry source, that if all things are equal in terms of size and price, consumers are choosing LCD over plasma by an overwhelming margin.

2. Make larger plasmas with enticing price tags.

Later this year, Panasonic will bring out the 54-inch TCP54S1 to counter the new 55-inch LCD TVs that are heading into the US market. It's a tall order, but it will have an easier time achieving a picture quality advantage than a price advantage. Beyond the 54-incher, Panasonic will also need something bigger to counter the impact of more 55-inch LCDs. In this economy, however, most of the action is in the 42- to 55-inch range.


Tags: Plasma, Organic Light-emitting Diode, TV, LG Electronics Inc., LCD
 

 

    Talkback
Zagatos says...
Once LED-backlit LCD TVs become standard that will be the death of plasma. Which kinda sucks since iam a fan of plasma.

 
 
To post comments, you need to become a member. It's FREE.
advertisement