Price for next-gen pixel technology is main sticking point
When Samsung's HS Kim speaks, the industry listens. As executive vice president of Visual Display Business, Kim has helped Samsung maintain its lead as the world's best-selling brand of flat-panel TVs. Reviewed.com sat down with Kim in Seoul last December for an exclusive interview, in anticipation of new product announcements at CES 2014.
Among the surprising revelations, Kim voiced skepticism about the immediate viability of OLED televisions, but was optimistic on UHD for 2014. He also spoke about the how Smart TV interfaces will develop, and why Samsung will not be entering the content business anytime soon.
OLED's cost barrier
Last year saw the first consumer-ready models featuring two major innovations in television tech: UHD and OLED. Each promises a huge leap in picture quality from today's Full HD televisions. UHD refers to screens that have at least four times the number of pixels as Full HD, greatly increasing sharpness. A number of UHD TVs shipped in 2013, from Samsung, LG, Sony, Sharp and others. They met with generally positive reviews, but currently suffer from a lack of matching UHD content that can take full advantage of the increased sharpness.
OLED refers not to the number of pixels, but their composition. New materials allow for a richer, more dynamic viewing experience than current TVs. Only Samsung and LG sold OLED TVs in 2013. Reviews of these units were exceptionally positive, but prices started at $9,000 and went up from there.
"Not many consumers tried to purchase OLED TVs at that price," Kim said. "Price was our greatest barrier. So our attempt to expand the market didn't really go well."
The unfriendly prices, he acknowledged, are due primarily to difficulties plaguing the OLED manufacturing process. "I'm really, really terribly sorry to say this, but it will take more time. … I believe it will take around three to four years."
He admitted that at this time last year, he had predicted that it would take two or three years, indicating that the manufacturing issues are more significant than previously thought.
However, Kim remained positive on the immediate prospects of UHD. While there's little content at present, many content providers have announced intentions to begin UHD video transmissions in 2014.
Kim compared the UHD transition to the adoption of high-definition television less than a decade ago, and predicted that "the only difference between Full HD and UHD is that the UHD trend will take place faster."
In order to expedite the transition and foster growth in the UHD ecosystem, Samsung is in talks with other electronics manufacturers, as well as Hollywood studios. However, no formal partnerships have been announced at this time.
How smart can TV get?
Beyond the physical components, the other rapidly evolving aspect of television is "smart TVs." These sophisticated interfaces grow more feature-rich each year, with dozens of options for streaming content already built in.
However, reviews have frequently pointed out that certain functions meant to emulate smartphones fall flat when applied to a TV. Web browsing, Twitter, and other apps that require a lot of text input have generally been met with frustration when a remote control, rather than keyboard or touch-screen, is the sole input device.
Samsung has been on the forefront of smart TV interfaces, but now with several years of market research under its belt, it may be ready to make some changes.
Television, Kim states, is a "lean-back" experience. Unlike other devices, TV is watched from a distance, so getting the user interface right is critical. Previous Samsung TVs have debuted gesture and voice commands, and the new TVs for 2014 will continue to refine those features.
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Samsung's mobile division is, of course, also in deep partnership with the Android platform, producing products like the Galaxy S4, the top-selling phone of 2013.
Rumors and wishes for a Samsung Android television have kicked around the Internet for some time. Kim did not entirely dismiss the possibility, but didn't seem particularly keen on it.
"From the consumer's perspective," he stated, "when they watch TV it doesn't matter whether it's a Google or an Android or a Samsung TV."
However, he left the door open by concluding that "if Android TV can provide the best optimal viewing experience, then Samsung will provide that."
Samsung is no Netflix
With millions of homes watching to Samsung smart TVs every night, it might seem natural to wonder whether the company is exploring the idea of cutting out the middleman of cable providers and getting into the content business itself.
Kim was absolutely firm on this point. "We don't care to enter into an area that we don't do well. Which means that we don't have any experience in the content area. ... I am not convinced that we can earn profit in the contents business," he said.
With a new year ahead and many new and competing TVs, Samsung appears poised to retain its lead.
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