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TV Tech: 10 Smartest Things I've Seen In 10 Years
By Swanni

Washington, D.C. (March 17, 2011) -- Editor's Note: To celebrate the 10th anniversary of TVPredictions.com, over the next several months I plan to publish a series of features honoring what I think represents the '10 Best' in the field of TV technologies.

(And in some cases, '10 Worst' articles will expose companies and people who I think are failing to strive toward excellence, or, in some cases, not even making a serious effort to satisfy their customers.)

Last week, I wrote the
10 Dumbest Things I've Seen In The Last 10 Years of TV Technology.' Today, I present the '10 Smartest Things I've Seen in the Last 10 Years of TV Technology.'

In 10 years of covering TV technology at TVPredictions.com, I'm often accused of being too negative, usually by company officials who have a vested interest in the subjects I am writing about. Of course, they call it negative; I call it just being truthful.

However, that said, I also frequently praise good work and innovation when I see it. So to counter my '10 Dumbest Things' article...

I present, 'The 10 Smartest Things I've Seen In 10 Years of TV Technology'


1. DIRECTV Dramatically Expands Its HD Lineup

With several TV providers now offering more than 100 HD channels, it's easy to forget that just a little over three years ago that most satellite and cable operators carried fewer than 20 HD channels, with some, like DIRECTV, offering less than 10. The high-def audience was growing, but the the TV providers were not growing with it.

However, DIRECTV decided in 2007 to invest heavily in four new satellites that would enable it to expand its HD lineup from just nine channels to nearly 100. At the time, DIRECTV had 16 million subscribers; today, it has more than 19 million and, unlike most of its rivals, it's not losing subs; it's actually adding them in a tough economy. The 2007 HD expansion is a big reason.

Of course, the reality is that DIRECTV, which now has roughly 130 'real' HD channels, greatly slowed its HD additions about 18 months ago. In fact, Verizon, AT&T and Dish Network now actually have more HD channels than DIRECTV. (And Comcast does as well in a few markets.)

But the 2007 expansion generated so much publicity, the satcaster still gets credit in the mainstream media -- and the culture -- as being the HD leader. Consequently, in 2011, many  HDTV owners are still dropping their cable services for DIRECTV, thinking it offers the best HD lineup on the market.

DIRECTV's fraudulent and manipulative 2009 ad campaign, which promoted that it would soon have a '200 HD channel capacity,' added to this perception. The satcaster had no plans to offer 200 HD channels, but the campaign made people think that they would. And so many people, including even some in the media, now think that DIRECTV actually has 200 HD channels.

Smart isn't always right, but it works.
 
2. Cable Resists 'a la Carte Pricing' Pressure
in 2005 with cable bills rising -- and consumer complaints skyrocketing -- several influential congressmen such as Sen. John McCain (R-Arizona) called for cable operators to offer 'a la carte' pricing. There were even threats that Congress would force the cable ops to allow their customers to pay only for the channels they wanted to watch.

Fortunately, the nation's cable executives saw the threats for what they were -- empty rhetoric  designed to appease unhappy voters -- and they decided to resist the 'a la carte' movement.

Their decision probably saved a few of them from going out of business -- and definitely saved an untold number of niche channels from extinction.

You see, the way the cable (and satellite) business models work, the TV providers need each subscriber to pay a minimum monthly amount. If each subscriber decided, let's say, to only pay $10 a month for HBO, the cable operator would not have the funds to carry much more than, well, HBO. And that would not make for a successful cable or satellite company.

But by charging at least $30-40 per subscriber for a basic package of channels, the TV providers have more funds to spend on such things as new HD channels and niche channels. Without those extra resources, the providers would only be able to carry a small lineup of the most popular channels.

You might say that's not a bad idea, but how would you feel if your cable or satellite lineup suddenly didn't offer the MLB Network, or Versus, or the regional sports channels, or AMC, or The MGM channel, or HDNet? A la carte pricing would turn your 100 HD channel universe into a 10 HD channel universe in the blink of an eye.


3. 'Streaming Video' Partners With Blu-ray

A few years ago, Vudu, which offers movies streamed over the Net, was pushing its own retail set-top. And there were rumors that Netflix was planning to do the same. However, the streaming companies finally concluded that the retail business was a tough nut to crack and they decided to partner with manufacturers of Blu-ray players and other devices such as gaming consoles.

They realized that it's a lot easier to sell your streaming service if the consumer only has to click a button on a set-top he already owns.

Roku and Apple are continuing to push their standalone Net TV set-tops, but I predict that they will hit a wall in the next year or two if they don't follow the path taken by Vudu and Netflix. People can only buy so many set-tops; there's real set-top fatigue out there. If given the option of getting Netflix on a Blu-ray/DVD player they already own (or were going to buy anyway for the disc playing features) or buying a whole new set-top (Apple TV, Roku) for the same type of streaming service, consumers will take the cheaper and easier path.


4. LCD Makers Out-Hustle Plasma Makers With 1080p Video
Several years ago, the word Plasma had become almost synonymous with the flat-screen TV. Consumers were so excited about the prospect of buying new Plasma sets that they became status symbols.

So, why do more people today buy LCD flat-screen sets instead of Plasma? By a wide margin.

Two reasons:

1. Early Plasma models were hampered by a flaw called 'burn-in.' If you left the set on too long, the image would stay on the screen. While Plasma makers fixed the problem in later models, the negative word of mouth continued to spread, thanks in part to LCD makers who were happy to whisper (loudly whisper) about the issue to anyone who would listen.

2. About four years ago, LCD makers decided to include a new feature in their sets called 1080p. The feature purportedly offered the best possible high-def picture, better than 720p or 1080i. Problem is, you could only watch something in 1080p (and still only can) if you had a Blu-ray or HD DVD player. TV networks did not (and still don't) broadcast in 1080p.

Perhaps noting that 1080p content was rare, the Plasma makers were slow to introduce 1080p sets. And that gave the LCD companies all they needed to take over. They persuaded potential TV buyers that a 1080p set was essential to getting the best possible picture. By the time the Plasma makers woke up and launched their own 1080p sets, LCD sales were booming.


5. Plasma Makers Push Lower-Priced Sets
A little more than a year ago, some (wrong-headed) analysts were predicting the demise of the Plasma set for the reasons stated in #4. Sales were dropping so fast that it seemed inevitable that LCD would own the flat-screen category for years to come.

However, Plasma makers finally got smart and realized that they had two things going for them:

1. Most objective analysts (including me) said Plasma offered a better picture than LCD.
2. With the introduction of 1080p Plasma sets, the Plasma makers could sell their 720p sets at prices much lower than comparably-sized LCD sets.

Over the last year, the combination of the two factors has allowed Plasma to make a comeback and I predict that Plasma sales will continue to rise in 2011 and beyond.


Evangeline Lilly of ABC's Lost, an early HD favorite.

6. CBS and ABC Go High-Def Early

CBS and ABC (particularly CBS) decided several years ago that it was important that the majority of their primetime lineup was in HD. They saw the HD audience growing and they concluded that new HDTV owners would gravitate to the networks that offered the most programming in high-def.

In contrast, Fox was late to the HD game, finally offering sportscasts in high-def in 2004. It took a few years more before some Fox primetime shows switched to HD. (The network was clearly not a big believer in high-def's potential; Fox Sports Chairman David Hill even
once said he didn't see why people were excited about HD; 3D was more interesting to him, he said.)

NBC was an early convert to HD, but under the leadership of now ex-CEO Jeff Zucker, the network downplayed HD in primetime for years, choosing instead to air reality shows in less expensive SD.

Bottom line: Which networks today get the best overall ratings? Answer: CBS and ABC. And I believe that the two networks' decision to court the evolving HD audience is a major reason why.

7. Local News Stations Go High-Def Early
There are now more than 300 local stations that offer local news programs in high-def. But some of those stations had the wisdom to make the switch to HD several years ago when the HD audience was just building. Like CBS and ABC, the local stations that were first in their markets with HD news eventually benefited with better ratings, not to mention better broadcasts. They learned early what worked in HD and what didn't. And that continues to pay off for them.

8. Studios Drop Promotion of Blu-ray's 'BD Live'
From 2007 to 2009, the Hollywood studios heavily promoted the interactive features available on Blu-ray high-def discs such as accessing ringtones, games, movie trailers and other content from the Net. Known as BD Live, the ITV features were prominently featured in Blu-ray ad campaigns and in-box promotions. In fact, they were promoted more than Blu-ray's two strongest assets -- a  great picture and great sound. (Sony actually once said BD Live was Blu-ray's "killer app.")

I believe that the studios were shooting themselves in the foot by promoting BD Live over Blu-ray's biggest strengths. Movie lovers want to watch movies; they are not terribly interested in interacting during the film or even afterwards, particularly if they have to connect their set-tops to a Broadband Internet network.

Well, I'm happy to note that in the last two years that the studios have changed course and now usually promote Blu-ray's exceptional picture and sound in ads. The campaigns are targeted now to people who like to watch movies.

Okay, I know. Duh. But give the studios credit for being smart, realizing their mistake and moving forward.



9. Advertisers Switch to HD Commercials

About four years ago, many (wrong-headed, again) analysts were predicting that the Digital Video Recorder would destroy the TV commercial. Few consumers would watch commercials during recorded playbacks, they said, because they would just skip right through them.

However, something changed. One, ad-skipping was actually overrated; believe it or not, TV viewers tend to be a bit lazy and don't want to constantly pick up their remotes and hit the FF button every 10 minutes. Sure, they'll skip some ads but they'll watch some, too. (Recent
research has proven this.)

Second, some smart advertisers started to produce their commercials in HD, which made them stand out. So when the HD DVR owner watched a recorded show -- and started to hit the FF button -- they would stop if they saw that the commercial was in HD. A high-def commercial was interesting and different.

Shooting the commercials in HD was more expensive, to be sure, but it was also smarter.

And any advertiser today that doesn't shoot in HD is dumb -- and is risking that his/her commercial will be skipped by a DVR.

10. Cosmetic Artists Introduce 'HD Makeup'
As I noted in my '10 Dumbest' article, the introduction of crystal-clear High-Definition TV sent panic waves throughout Hollywood. Actors and actresses were scared to death that people would actually see their facial imperfections and aging signs.

But several cosmetic companies smartly exploited the issue by introducing new makeup techniques designed to make people look better in HD. The techniques, often called 'airbrushing,' soften the imperfections so people look less 'real' on screen.

In my view, the HD makeup does help, but to be bluntly honest, it won't cover up someone's acne scars or wrinkles. The only 'techniques' that do that are trick lighting and camera filters, which blurs the image so the viewer can't detect as many details in the picture. (Some actors refuse to go on certain late night talk shows unless they're promised that the camera filters will be used.)

But the cosmetic companies have created the perception that HD makeup can work wonders. And they've been able to fortify their careers.

And that's being damn smart.


Also see:
What Are The 10 Best HDTV Channels?
10 Dumbest Things I've Seen In The Last 10 Years of TV Technology

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© TVPredictions.com
______________________________________________________

Phillip Swann is president and publisher of TVPredictions.com. He has been quoted in dozens of publications and broadcast outlets, including CNN, Fox News, Inside Edition, The New York Times, The Washington Post, The Chicago Tribune, The Financial Times, The Associated Press and The Hollywood Reporter. He can be reached at swann@tvpredictions.com or at 703-505-3064.

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