Could 4K TVs Boost Home Shopping Networks? Brean Capital Says Yes
Home shopping networks that sell around-the-clock television programming could hit a bonanza from a line-up of new consumer electronics products, an analyst said earlier this week.
Brean Capital's Tom Forte said consumers could be primed to dump their current television sets in a round of upgrades sparked by 4K TVs. The designation refers to an emerging standard of higher picture resolution.
"This could be the year when 4K TV finally emerges," Forte said, following his attendance at the annual Consumer Electronics Show in Las Vegas.
Home shopping networks "excel at communicating complex consumer electronics stories" according to Forte, who added that historically, the companies "have been able to use consumer electronics merchandise to acquire new customers."
Major television networks continue to offer limited content using the 4K standard.
But Forte said content is available from streaming video services like Amazon.com, Inc. (NASDAQ: AMZN) Instant Video and Netflix Inc. (NASDAQ: NFLX), and from user-generated home video on several platforms.
The downside for home shopping networks: If consumer electronics become too large in sales mix, it could dampen the companies' gross margins, Forte said.
Image credit: John Karakatsanis, Flickr
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