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From big to giant: Behemoth TVs start to take off

By WTOP Staff

ANNE D’INNOCENZIO
AP Retail Writer

NEW YORK (AP) — Supersized isn’t just for french fries.

Americans increasingly are replacing their once-enviable 50-inch TVs with even bigger screens. Think: 65-inches and up.

People are snagging big screens — pushing sales of them up 50 percent in the past year while overall TV sales have faltered. As prices fall, hardcore TV watchers and video gamers are finding sets affordable that a few years ago would have been playthings for wealthier people.

Jarvis Jackson, for instance, plans to spend up to $1,500 for a 65-inch TV with Internet capability. Jackson, who lives in Birmingham, Ala., says he’ll scale back on dining out and postpone other purchases to make room in his budget.

“You definitely can tell the difference between a 55-inch and a larger size TV,” says Jackson. “To get the right TV is important, especially when football season is coming up.”

Shoppers like Jackson are being enticed by new technologies like Internet capability that allows Netflix streaming, and Ultra HD screens, which offer a sharper picture.

Falling prices have also made big screens more accessible to the average person: TV prices overall have fallen 9 to 11 percent, and the average price of a 50-inch TV is down $75 from two years ago to $573, according to research firm NPD Group.

“TVs are more affordable than they’ve ever been, so a ‘supersized’ TV today is still far less expensive than smaller screens were three or four years ago,” says Jamie Bastian, a spokeswoman for Target, which expanded its selection of big-screen TVs to include 70-inch versions this year, up from last year’s 60 inches.

Although TVs 65 inches or bigger account for just 2 percent of sets sold, they’re the bright spot in a market that has been slumping in part because more people are using tablets and cellphones to stream movies and TV shows.

Overall, TVs 50 inches and bigger accounted for 25 percent of the sets sold in the past 12 months, up from 14 percent in 2012. NPD expects the figure to reach 30 percent this year.

The advent of flat screens and high-definition television prompted a rush to upgrade a decade ago, but things like 3-D TVs have failed to entice buyers in recent years. But experts say Ultra HD is a simple enough upgrade to gain widespread adoption in the next few years.

While overall TV sales have dropped as much as 10 percent annually since 2010, big-screen TVs have become the fastest-growing category. During the year that ended April, 800,000 65-inch TVs or larger were sold, a 69 percent jump. That equated to a 50 percent increase to $1.6 billion in sales in a TV market totaling an estimated $18 billion.

Lower-income shoppers are accounting for a larger share of the supersized TVs. In the year that ended in April, 61 percent of TVs 60 inches or larger were purchased by shoppers with household incomes of $75,000 or less, up from 45 percent a year earlier, according to NPD.

Retailers are taking advantage of the demand. Amazon.com plans to feature some 100-inch models this year, while Chicago-based electronics store Abt is expanding its warehouse space by nearly 30 percent, in part to accommodate bigger TVs.

Best Buy is increasing its selection of 55-inch-plus TVs by 20 percent. But big-screen TVs come with hassles: Best Buy delivery people sometimes have to open the box on the customer’s front lawn or go through a patio door because the box won’t fit through a regular door. Best Buy says a 55-inch Samsung TV weighs 37 pounds whereas a 75-inch Samsung TV weighs 83 pounds.

“I don’t think anyone would have estimated the appetite for the size of these TVs,” says Luke Motschenbacher, director of Best Buy’s TV business.

Wal-Mart Stores Inc., the world’s largest retailer, is also beefing up its big-screens because of increasing customer demand. The retailer is allocating half of its TV wall to 50- to 60-inch TVs this year, up from about a third last year. It’s also offering 80-inch TVs, including a $2,998 Vizio, in some stores. And Walmart.com is increasing its selection of stands to accommodate TVs over 60 inches.

This year, at Wal-Mart’s Sam’s Clubs, nearly half of the TVs will be at least 55 inches, up from about 30 percent last year. Last year, the biggest TV that Sam’s Club sold in its stores was 80 inches. This year, it will sell 90-inch TVs in some locations.

Sam’s Club CEO Rosalind Brewer says the trend is “counterintuitive” to the overall frugality it’s seeing from members, who are switching to cheaper chicken from more expensive cuts of beef.

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Follow Anne D’Innocenzio at http://www.Twitter.com/adinnocenzio

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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