Give the Gift of Video: (Affordable) Yearend Holiday Shopping

Perhaps the only thing headed downward more consistently than sunlight per day is pricing for video-capable consumer-electronics (CE) – the types you give and want to receive during the yearend holidays.

What transpires in the next two months will go a long way to defining 2013 for video consumption and for the evolution of the video ecosystem – consumer and corporate. CE devices sold during this period will also foster commerce opportunities to end users, whether they’re wired or wireless products.

Spending Outlook

Consumer electronics continue to be among the most wanted gifts this holiday, and are expected to account for nearly a third of all gift spending, according to an annual study by the Consumer Electronics Association (News - Alert) (CEA). On average, consumers plan to spend $1,634 overall this holiday, up 11 percent from last year. Consumers plan to allocate $842 from their overall budget toward gifts, up 9 percent from 2011, according to the group.

Consumers plan to spend $252 on CE this year, on par with last year’s number of $246, and three in four (76 percent) of gift giving adults plan to purchase CE products as a gift this year.

Holiday Gift Wish List: Tablets Trump All!

Mobile connected devices are the most wanted gifts this season, led by tablet computers, according to a study by the CEA. "Tablets are the most wanted gift on both adults' overall holiday wish list and their CE wish list. Money and peace/happiness are close behind on the overall wish list wish smartphones and notebook/laptop computers rounding out the top five," the group claimed. "When asked specifically about electronics, consumers' CE wish list is similar to their overall wish list, with televisions also making the list."

Cost-conscious shoppers (not the crazed, rampaging zombies who will take out a competitor like a blitzing safety) stand to gain the most by NOT buying the latest and greatest CE devices when the tryptophan wears off and shopping goes into its highest gear.

How is that possible you ask?

The straight answer is once the latest and greatest – or newest version of a popular device – debuts, the price of its predecessors drop like winter temps. And the “latest and greatest” status in the CE world is more fleeting than ever, in part because of efforts from competitors and firms you didn’t know two years ago (see TV makers).

2D Set Prices Plummet

The onslaught of 3D TVs has crushed prices of 2D big screens that have the 1080 dpi resolution, built-in Wi-Fi connectivity (for streaming), 120Hz refresh rate in sizes all the way up to about 5 feet in size. Feature-rich DVRs are on the list of in-demand devices that won’t break the bank.

And of course the release last month of the iPhone (News - Alert) 5, cut the cost of the 4s with a two-year commitment in half or less. The same goes for new gaming consoles. And new versions of popular games and accessories will race on til the true end of days/zombie apocalypse/Armageddon.

The best possible news is this is an ongoing process: new device/version comes out, all predecessors drop in price. There will be more iPhone models and iPad models…same for gaming stations…same for TVs…and on and on.

Beyond Christmas Bargains

What accelerates this situation to little surprise is the intensified buying linked to the yearend holiday shopping season which extends past the holiday to include all those devices that didn’t get bought and shouldn’t be exiled to the island of misfit toys.

And what comes after December 25? Retailer desperation reaches its peak after realizing all the products it didn’t sell for the holidays must go. Price cuts reappear and can make Black Thursday tag (News - Alert) look puny by comparison.

Bargains abound on the video front and far beyond.

Real Resolutions? Real Deals?

Next comes New Year’s Day and the onset of resolutions both strong and diluted. If the economy continues to struggle, consumers will be looking to cut costs, especially when the impact of holiday spending hits.

Note to pay TV and OTT providers – This is the perfect time for aggressively marketed/ priced home service bundles and more. Extend the holiday cheer by offering free stuff and add value along with a lower price tag.

Take notice of Verizon (News - Alert), which has done just that before turkey day, cutting its triple play price to $79 a month with a two year agreement and throwing in a $300 gift card. No need to wait for January 1.

And I mentioned “marketing” as I have no problem filling the gigantic vacuum left by the end of national political ads with spots about cool, video-capable products and video-driven services.

Make it equally enjoyable to give and to receive!

Shop smart, and responsibly….