Panasonic Expands VIERA Series - Analyst Blog

A leading manufacturer of High Definition (HD) televisions, Panasonic Corp. (PC) recently launched a new VIERA GT25 series of full HD three dimensional (3D) Plasma televisions, expanding its premier VIERA brand.

The GT25 series has 600Hz sub-field drive; 1080 pixel full HD resolution; 1080 lines of moving picture resolution; VIERA Image Viewer (for viewing of digital still images), 24 pixel cinematic playback and a new fast switching phosphors. GT25 Series can convert a two dimensional (2D) image or video to 3D. For 3D viewing, customers have to purchase an Active Shutter 3D Eyewear, which is sold separately.

The new series has two classes. The 42 inch class (41.6” measured diagonally) is the first of its kind priced around $1,699.95. The second one has a screen size of 50 inches (49.9” measured diagonally) and carries a price tag of $2,099.95. Both the models will hit the market in late August 2010.

We believe the small 42-inch class is a significant addition to Panasonic’s product portfolio as it targets the video game players.

The new series is an enhancement to Panasonic’s VT25 series, providing its customers a broad range of product choices ranging from 42-inch class to 65-inch class screen sizes. Panasonic also markets 85-inch, 103-inch and 152-inch class professional full HD 3D Plasma models.

The VIERA GT25 series has most of the VT25 features, including IPTV functionality known as VIERA CAST. VIERA CAST features an USB port that allows users to connect a wireless LAN adaptor through which they can access the Web, use a keyboard for easier and faster navigation and USB memory chip.

Users can access the Internet through VIERA CAST, which currently includes services from Amazon.com Inc.’s (AMZN) Video-on-Demand, Netflix Inc. (NFLX), Google Inc.’s (GOOG) YouTube, Picasa Web Album, Bloomberg, Pandora, Twitter and a weather service, as well as Skype.

The new series also features VIERA Link that allows users to control their VIERA Link compatible audio and video products with just one remote. A user has the opportunity to add a network camera to the mix by using VIERA Link.

With the launch of the GT25 series, we believe Panasonic remains focused on providing a new era of visual entertainment to consumers, especially by making 3D easily accessible in homes. In this respect, the company in partnership with DIRECTV’s (DTV) recently-launched dedicated channel to 3D programming, available without any extra cost.

Moreover, 3D movies have achieved tremendous popularity. Approximately, 12 3D movies have been released to date and another 13 movies are expected to release in the remaining half of 2010. Moreover, approximately 43 3D movies are expected to be released in 2011 and 2012.

We believe the increasing popularity of 3D will drive higher demand for the new series of televisions, thereby boosting Panasonic’s profitability over the long term. Moreover, the expanded product portfolio will also enable Panasonic to gain market share in the HD segment, despite facing stiff competition from Sony Corp. (SNE) and Koninklijke Philips Electronics NV (PHG).

We continue to maintain a Neutral recommendation on Panasonic on a long-term basis (6+ months). Currently, Panasonic has a short-term Zacks #3 Rank ('Hold') rating.
 
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