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Philips Electronics `Designing at Home' Survey Reveals Consumers Are Dreaming of the Premiere Home Theater

Business Wire, April 22, 2004

Business Editors

ATLANTA--(BUSINESS WIRE)--April 22, 2004

Philips Electronics (NYSE: PHG)(AEX: PHI) recently commissioned the "Designing at Home Survey" to gauge consumers' perceptions of home technology and the best ways to integrate new advances and products into the decor of their homes. The survey, conducted by the research firm TNS Intersearch, consisted of more than 400 nationwide interviews with male and female respondents and shed new light on consumers' attitudes, desires and behaviors related to home theaters.

Let's Go to the Movies...at Home

Forget the hassle, lines, expense and limitations of going to the movies. These days, more and more Americans want to be entertained at home. Of those polled, almost one half of respondents (45 percent) have a home theater space in their home with the most common location in the family room or den (48 percent).

Consumers reported that two products are essential for creating the ultimate home theater setup - a large screen television (33 percent) and a high performance sound system (54 percent). Another 23 percent of respondents include a flat screen television in their description of the "ultimate home theater."

Technology - A Man's Best Friend or Not?

Wondering what's stopping consumers from upgrading their existing home electronics products to the latest and greatest gadgets on the market? For millions of Americans, the answer is quite simply comfort with technology. In the study, fewer than half of the respondents expressed comfort when selecting or integrating technological products for the home and almost one-quarter of the respondents (21 percent) admitted to purchasing between one and four electronics products and leaving them in the box because they were too difficult to install.

Additionally, a full one-third of respondents expressed concerns about product choices and wiring becoming obsolete and only 26 percent of respondents are comfortable with wiring their home electronics in a way that will not impact the decor of their home.

Even so, devices that promise simplicity and sleek design are still catching on. DVD players are one example of a technological advancement that has grown with amazing speed in America. Of those consumers polled, nearly as many people reported owning a DVD player (91 percent) as they do a VCR (93 percent).

Brighten Up Your Home

Lighting is a fundamental part of any design - it can be a starting point of a great design project or it can be the final touch to bring a drab room new life. It also is one of the most important and most overlooked enhancements to a home theater setup. So not surprisingly, only 24 percent of survey respondents said they feel prepared to make a decision about lighting and create a lighting plan for their home. Women were more likely to identify lighting as an issue in the home, with 45 percent of females saying that their lighting needs help, while only 30 percent of men indicating that it is a problem.

Time for a Change

Consumers are often overwhelmed with the thought of change, but they don't realize they don't have to have a big budget or do a major make-over to see a difference. Of those polled, 83 percent think painting is the least expensive home upgrade.

Designed Around Me

Consumers are looking for easy technology solutions that fit their lifestyle. 88 percent of survey respondents say that the most important characteristic when selecting new appliances or electronics is products with "all the features I want."

About Royal Philips Electronics

Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is one of the world's biggest electronics companies and Europe's largest, with sales of $32.8 billion (EUR 29 billion) in 2003. It is a global leader in color television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring and one-chip TV products. Its 165,300 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, semiconductors and medical systems. News from Philips is located at www.philips.com/newscenter.>