A Tipping Point in the Plasma Era

The end of the line Pioneer Kuro TV was a real tipping point in the television industry, preceded by a long gestation dynamic forces. The recession and LCDs Plasma topple for good, and the slope is quite steep, and fast.

Last week, Pioneer announced the killing of his critically acclaimed television companies in March 2010 and will focus on the car and the audio / visual systems. It was a dramatic fall for a company that a year ago had CES buzz with its new plasma TV, the so-called "Ultimate Black" Kuro.

The Kuro of technology was impressive, as it reduces the emission of light in black areas of the screen to such a degree that, at its maximum brightness, the contrast ratio is "almost indefinitely." The result is a plasma screen with the most dynamic and colorful images yet.

But even at the peak of the hype, the problems in the plasma industry have arisen.

Plasmas were at their most popular from 2004 to 2006, a period which saw a doubling of rear-projection TVs in the top large-format TV. But they had great difficulty to compensate for their lower level of average prices of sales volumes. The spectrum of LCD screens has also prompted many customers to postpone a purchase. In Février'08, shortly after the recession had officially taken hold, premium quality pioneer seems disconnected from reality. Moreover, LCDs are typical along the sports field of plasma screens larger, more contrast ratios, thinner and cheaper sets. LCD picture quality still failed to reach the levels of plasma, but for the average consumer, the difference is more evident.


Fast forward to early 2009, LCDs and plasmas have been outselling-8-1 on a global scale, and the domination of the best selling lists on Amazon.com.

Pioneer has attempted a final partnership with Panasonic to create a version of its plasma TVs, contributing its "secret sauce" to keep the Kuro tech runs, but that effort seems to be more.

The collapse of demand already consequences: the estimated loss of $ 1.41 billion in 2008-09 (after a loss of $ 203 million in 2007-08) and a decrease of nearly 50 percent of operating revenue has been directed to the 10,000 job cuts and the closure of U.S., UK and Japan facilities. But Pioneer is not the only TV manufacturer suffering. They are all taken on the chin, regardless of the type of display.

Both Hitachi andVizio had to stop the bleeding Formwork plasmas to focus on LCDs. And not even in general the period of flushing vacation from television land Financial Security: Sony, Panasonic, LG and all posted lower quarterly profits.

Component suppliers were also unable to escape the pain. As indicated in recent Om, Corning screen manufacturer posted fourth quarter 2008 revenues of $ 1.1 billion and has yet to let go of 3,500 jobs.

Pioneer has decided to end its production of plasma is more complicated. He bought NEC plasma business in 2004, used as an OEM for its glass, but has recently been forced to shutter the unit. Now, the only manufacturers of plasma stand are Panasonic, LG and Samsung, all of which make their own components.

Panasonic is well positioned to benefit from the death of Kuro. Most engineers Pioneer Kuro came with changed sides and are now working for Panasonic. In addition, recent demonstrations have shown that Panasonic plasmas are almost Kuro quality. Already in possession of the largest market share of plasma in the world (more than 35 per cent), the company will be able to build a diversified product line plasma televisions using a screen type of premium calls a niche that still wants them. Add to this the fact that he derives income from the sale of its glass to other companies, including JVC and Fujitsu, and it seems that it will be able to stay afloat plasma more than any other company. Panasonic will inherit the burden of the difficulty of the economy and the LCD screen challenge, but once the plasma is no longer economically feasible, its own LCD screens will probably be made in the image quality. In fact, the ultimate black contrast technology is already close to LCD. So it's only a matter of years (or less) before finally dying plasmas.

As for Pioneer, all is not lost. Representatives say that plasma TVs are only 14 percent of its business worldwide, and patents for technology Kuro provide a benefit for a while. But any positive bittersweet. The legacy of Kuro TV that will be another best-in-class technology that has been humbled by the strength of the economy and competitive market.