Commentary
Part Two: Networks Are 'Blowing It' On HDTV
HDNet's co-founder says ABC, CBS, NBC and Fox are spending too much time on Internet video and too little on High-Definition TV.
By Mark Cuban
HDNet President and Co-Founder

Reprinted with permission from BlogMaverick.com
Click Cuban to read Part One.

Part Two:
HDTV is the Internet video killer. Deal with it. Internet bandwidth to the home places a cap on the quality and simplicity of video delivery to the home, and to HDTVs in particular. Not only does Internet capacity create an issue, but the complexity of moving HDTV streams around the home and to the HDTV is pretty much a deal killer itself. Together, Internet video is destined for the PC monitor for a long time to come. The only wild card that will have an impact is gaming consoles, but they don't offer access to Internet video; they all kill themselves by only offering access to content inside their walled gardens. Internet video won't replace TV. It won't even complement TV offerings. It will flourish in the office. It will be a fun way to share personal content privately or publicly. It will be Community Access TV.

On the flip side, HDTV is here and now. It's gone from being a future technology that could be cool in our living room to being the King of this holiday shopping season. 10s of millions of HDTVs have been sold and will be sold in the next year. The number of households with HDTVs is exploding. Yet for reasons I can't figure out, the broadcast networks are ignoring the opportunity it presents.

The four broadcast networks (ABC, CBS, NBC, Fox) are really the only four companies that create content on a daily basis that can put smiles on the faces of all those HDTV buyers. They broadcast most of their prime time signals over the air and have the greatest reach on cable and satellite HD delivery.
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Bob Iger, Les Moonves, Bob Wright, Peter Chernin, why in the world are your networks not promoting the hell out of the fact that everything looks better in HD ?. Where is the "Congrats, you just bought an HD set, here is how to get our best programming ever in HD. And oh by the way, if you haven't called your cable or sat company or hooked up an antenna, you aren't getting HD. Call your cable or sat company to see what you are missing."

Every study about HD viewing says over and over again that people with HD sets, particularly those who just bought them will tune to HD networks first. Not only do viewers turn to HD first, but more families are gathering around their brand new HDTV that they just bought and are truly excited about. Why in the world aren't you taking advantage of this opportunity? This is a unique point in time where you can grab viewers from non HD networks simply by promoting what you are already doing. It could be the year where broadcast ratings explode because of HD.

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"This is a unique point in time where you can grab viewers from non HD networks simply by promoting what you are already doing." -- Mark Cuban.
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Then there is the advertiser side. Sure Internet video is the hot sexy thing now. But where do advertisers get the greatest value? From putting their TV ads on the net? By creating 10 second spots for pre or post roll and showing them on PC monitors? Or by creating commercials in HD that look beautiful on the brand new HDTV that millions of homes just installed and are excited to see new programming, including commercials on?

What's worse is that by letting your advertisers continue to show commercials in Standard Def, you are making them look clueless to all those new HDTV viewers. How many things could be more brand damaging than looking like you don't have a clue ?

This is a unique point in time for all networks broadcasting in HD to push the ball forward. HDNet is going to start a big ad push in 2007. Maybe we can carry the ball, but either way, it's absolutely crazy, and stupid to not leverage this opportunity to the hilt.

Last year I said that Disney was brilliant for breaking the logjam and selling their shows on iTunes. This coming year, 2007 will be known as the year Broadcast TV leveraged HD to create a Golden Age of TV with huge gains in ratings vs. on HD networks, or it will be looked back upon as the year Broadcast Networks blew it.

Either way, HDNet and HDNet Movies will be right in the middle of the High Def revolution.

Disclosure Note: HDNet is an advertiser at TVPredictions.com

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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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