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Industry Opinion: How are Larger Flatscreens Affecting the Mid-Range Projector Market? (1/3/2007)

By Yasmin Hashmi, HiddenWires

The term 'home cinema' can have quite a different meaning, depending on where you're coming from. For the high-end custom installer, 'home cinema' tends to mean a room fitted out as a private theatre, complete with automated lighting, curtains and projector. For the mass-market electrical retailer, it's a widescreen TV with some speakers on a stick.

No one can argue that if you want a true 'cinema' experience at home, there is nothing quite like sitting in comfy seats in a darkened room with a projector and screen, and decent-sized speakers. As the pressure of space affects more households however, not everyone can afford to dedicate a special room for this purpose.

The living room is increasingly being used for multimedia entertainment, with the TV being used for broadcast programmes, games, photos, Internet and films - both with and without the curtains drawn. The very largest flatscreens, such as the Panasonic 103" plasma, can hardly be accommodated by most in terms of space and cost, but there is no getting away from the fact that many who might have been in the market for a projector and screen are seriously weighing up the advantages of the larger flatscreen TVs instead.

So we asked a number of leading lights in the projector and screen market, the question, "With high-definition flatscreen TVs ever increasing in size, how can installers continue to promote the home cinema projector to the mid-range market?" Here are their answers:

Peter A. de Kroon, Managing Director, Projecta bv.

"The competition between flatscreens and projector/screens is getting stronger, but there are still big differences in terms of price and size. You really need a diagonal of 300cm (118") to enjoy that 'real home cinema experience', which won't be provided by a 58" flatscreen - never mind comparing a GBP1000 projector and GBP250 screen with the cost of the 58" flatscreen.

We see the projector/screen as an addition to the TV, not as an alternative. So we recommend having a smaller flatscreen for regular TV programmes, and using the projector/screen for special occasions such as watching a movie, a football match or a concert. And if you don't want projector and screen on show, then there are always built-in solutions available that hide it all away.

And finally, an important benefit of a projector/screen system is the fact that watching a projected image on a screen is much more relaxing than watching a bright plasma which can hurt the eyes after a while."

Holger Graeff , Sales Manager, Planar Systems Inc.

"Installers can still successfully continue to promote the home cinema projectors to the mid range market as long as they clearly position each technology and application. Flatscreen TVs are great to showcase in your living room, but with sizes going up to 60" at price points of around EUR10,000, there is a limited market right now for the larger sizes.

The advantage flatscreen TVs have over projection is clearly the ability to watch it under any condition, even in broad daylight, but if you truly want a large picture, projection will provide this at a better price point, ranging anywhere from EUR2000 for entry-level high-definition home theatre projectors up to EUR5000-6000 for higher-end installations.

If you want to be able to watch your home cinema in daylight, but are not willing to spend EUR10,000 on a flatscreen, you could also consider using front projection with a special home theatre screen that allows you to project in ambient light environments and still keep a great video image. The Planar Xscreen for example, gives you double the gain and contrast compared to regular home theatre screens, is available in 60" to a 100" sizes, and ranges in cost from EUR1200 to EUR2300."

Holger Jensen, Director of European Operations, Stewart Filmscreen Europe ApS

"I think that consumers who are looking for a 'cinema' experience will look for images significantly larger than those currently offered by flat panels. The most popular sizes we sell are in the 92" to 110" diagonal range, and no flat panel solution, apart from the very expensive Panasonic, offers anything in that range. The cinema experience comes from large images, and most movies are produced in the aspect ratio of 1:2.35, for which even the large flat panels have not much to offer.

We did a study to see whether the introduction of larger flat panels would drive up the screen size used for projections systems, but found nothing conclusive. What we do think will have significant impact to the middle market however, is the availability of 2k projectors that allow the customer to have very large images with even higher high quality!"

Vladimir Wang-Wah, Product Manager, CineVERSUM

"Very large flat screen solutions are helping the mass-market to realise the benefits of having big displays, and they will steadily become more common and affordable to a wider market. The home cinema projector however, offers a number of advantages, such as a borderless screen, no aspect ratio constraints, larger screen capabilities, more sophisticated integration possibilities thanks to the light weight of the mobile parts and a smaller volume. These unique features make the difference between a big flatscreen TV in your living room and a true home cinema.

We have noticed that flatscreens and projectors are often used in the same place. The screen is used more for everyday TV watching, whereas the projector is devoted to movie watching or for big events. Our goal therefore, as a projector manufacturer, is to make projectors more consumer-friendly, and plug-and-play, so that our customers can use it for anything, including TV, video games, movies, computer work etc."

Anders Løkke, Marcoms Manager, projectiondesign

"Super-large flat screen TVs are hardly practical at very large sizes, say above 50-60 inches diagonal, even though people want them, and desire them. Practical problems include shipping, sheer size and weight, and also power consumption in some cases!

With projectors, there is simply no substitute for diagonal inches. Projectors with very high performance - all sporting 720p or 1080p resolution - can be had for less and less money, giving performance and inches per pound that were unheard of just a couple of years ago. And, for many, it still is about image size - and in this area, the projector remains totally unchallenged.

While the mid-range can mean limited budgets, it is better, and safer for the integrator to sell a flatscreen TV of medium size, AND a projector for the larger occasion. It is however, easy to realise that projectors are a niche business compared to flatscreen TVs that are everywhere, but while projectors alone are still more for the enthusiast than for the wider market, the enthusiast group is rapidly growing!"

Derek Kuziw, Managing Director, A+K

"With the rising popularity of the high-definition flatscreen it has never been so important for projector manufacturers to provide high-quality, competitively-priced alternatives which still out-perform the flatscreen in terms of image quality, contrast, clarity and detail.

Mitsubishi for example, has recently launched the HC5000 1080p home cinema projector as a competitive, high-quality solution to the mid-range market. Combine this with a suitable projection screen, such as the next generation of Stewart Filmscreen's projection screen material, FireHawk G3, which is specifically intended for 1080p projectors and source material, and you have nothing less than a superb high-resolution image. The low bundle retail price of approximately GBP4000 highlights the fact that there is still significant price differential between a projector/screen solution and flatscreen TV, as projector and screen manufacturers meet and often exceed the requirements of the mid-range market."

Stuart Tickle, Managing Director, AWE

"We still see these as two clearly defined markets. The 60" flat screen market for example is definitely a growing sector as it is probably the best balance for people who want a single solution for both TV and sport/film. However, for those people who have the luxury of being able to have a large screen and a projector then the benefits are clear.

To have a 50"/60" screen as your main TV is as big as most people want. Why? Not many in reality want to have a cinema-sized image and controlled lighting for watching the news. While the latest plasma and LCD screens are superb all round performers, and are still improving, for sports events and films you can't beat the big screen results from a decent 1080p projector. Our new CineVERSUM Blackwing Two for example, costs GBP6k SRP (plus a decent screen), but you would need to pay GBP36k for a 103" plasma to even get close on size and impact. So for now, the mid range projector market is hotter than ever, and from a trade perspective also offers much more attractive returns too."

Jim McGall, Vice President of Sales and Marketing, Vidikron

"Today's flat panel plasmas and LCDs are great 'market drivers' in terms of stimulating the overall large screen business, yet for all their wonderful attributes they're still in effect 'large television sets' hung upon the wall. A dedicated home cinema - using one of today's reference-level cinema digital projectors and home theatre screen combinations, delivers all the impact, image quality and immersive experience of the professional cinema.

Our custom installation dealers can deliver (and even at 'entry level' price points), the ultimate widescreen viewing experience - something that simply cannot be obtained with 16 X 9 flat panel sets. For example, the thousands of 'scoped' movies in 2.35:1 aspect ratio or greater are still best viewed with an appropriately-equipped Vidikron front projector (outfitted with our CineWide or CineWide with AutoScope technologies) on an appropriate home theatre screen. The end result is a true home cinema experience that is sometimes even better than what can be had at your local cinema, and at a very competitive price when compared to the largest flat panel sizes.

Front projection remains the configuration of choice for the very best, no compromise presentation, as the only format that can both emulate and exceed the movie theatre experience - and does both by a country mile!"

If you would like to comment on this issue, or to be included in future opinion pieces, please send an email to opinion(AT)hiddenwires.co.uk.