Audio Video News

Since September 11, live theater and concert attendance has fallen by as much as 75% in some parts of the country, while video rentals have mushroomed. The reason: people want to stay home.

The stay-at-home trend, otherwise known as "cocooning," doesn't help the overall economy, but it may benefit electronics retailers—especially those specializing in video and home theater equipment. Reports emerging in October indicate that consumers are picking up new televisions in surprising numbers, including expensive big-screen sets. Digital television sets have been selling briskly since September 11, according to marketing executives at upscale electronics chains such as Denver-based Ultimate Electronics and Canton, MA's Tweeter Entertainment Group.

TV sales have actually picked up since the day of the World Trade Center tragedy, and are expected to continue to be strong through the holiday season, typically the most profitable time of the year for electronics retailers. "TV, in a time of crisis, feels like a necessary thing, while a speaker and a stereo system might feel more discretionary," explained Tweeter CFO Joe McGuire. Tweeter operates 147 stores in the Northeast, mid-Atlantic, and Southeast states, as well as a group of stores in Texas. TV sales have accounted for 30% of the chain's sales volume since early September. In normal times, TVs represent only about 20% of overall business, McGuire said. Ultimate Electronics marketing vice president Jim Pearse tells a similar story, saying that his company is experiencing unusual demand for TVs and expects video gear of all types to sell extremely well during the holiday season.

Although sales of computers, audio equipment, and other types of electronics are languishing, video equipment is hot. Sales of DVD players are up 48.6% from last year, according to the Consumer Electronics Association. Only four years after the format's introduction, DVD machines can now be found in one of every three American homes.