AUSTIN, TEXAS, March 2, 2010—Following a multi-year decline in TV demand, the flat panel TV market is forecast to heat up in Brazil in the run-up to the World Cup this summer. According to the DisplaySearch Brazil’s TV Market, the TV market in Brazil has historically experienced a surge in TV demand every four years when the World Cup takes place.

 

Over 9 million TV units were shipped in Brazil during 2009. DisplaySearch forecasts LCD TV shipments will grow 68% in 2010, with total shipments of flat panel TVs growing 51% for the same period. The company also anticipates that LCD TV shipments for the region will outpace CRT shipments for the first time this year. Underpinning this forecast is the increase in consumer purchasing power and better credit availability, which have improved consumer markets in the country, especially the market for durable goods.

“The TV remains an important entertainment source for the Brazilian population, with TVs outnumbering refrigerators in households. Both the World Cup and the transition to LCD TVs will result in strong shipments for the region on 2010—making it an attractive investment opportunity for the TV supply chain,” noted Paul Gagnon, DisplaySearch Director of North America TV Market Research. ”However, Brazil has some unique barriers to entry that make understanding the local business environment critical to profitable success.”

Figure 1: Brazil TV Shipments by Technology

Source: DisplaySearch Brazil’s TV Market

With local manufacturing facilities, Sony, Samsung, LGE and Philips are the dominant TV brands in Brazil. These companies have established local manufacturing plants in an effort to take advantage of tax incentives that make it prohibitive to import TVs.

The first digital TV broadcasts were made in late 2007 and are expected to be an additional driver of flat panel TV growth in Brazil. Currently, about 23% of the Brazilian population has access to digital TV broadcasts in 26 cities, with the analog broadcast cut-off expected in 2016. The Brazilian government will start mandating digital TV tuner integration this year to meet that schedule.