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News Digest
Study: Cable & Satellite Ops Dropping Ball On HDTV
 TVPredictions.com

Washington, D.C. (November 24, 2009) -- A new Frank N. Magid study says cable and satellite TV operators are failing to inform subscribers of the benefits of HDTV programming services.

Noting that roughly 40 percent of consumers own a high-def set, the Magid study says only about 66 percent of that group now subscribe to a high-def programming package.

That's nearly the same HD subscription level as in 2008 when 64 percent of high-def owners said they subscribe to HD programming packages. Magid estimates that about 14 million households with high-def sets do not subscribe to a high-def programming service.

 "The disparity between HDTV ownership and service adoption reveals challenges for programmers," said Maryann Baldwin, Vice President of Magid Media Futures. "Some consumers were driven to purchase HDTVs under the erroneous assumption that they would be prepared for the digital transition - and didn't buy an HDTV set for the value of the programming in the first place."

Read more below.

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"On the other hand, this reveals a major opportunity to increase programming subscriptions and to close the gap between set buyers and service adopters though improved marketing and education," added Jill Rosengard Hill, Senior Vice President. "Since marketing buzz has waned after the digital transition, HD is fading as a top-of-mind feature for some consumers."

Why do consumers fail to sign up for HD packages?

Magid said 42 percent of those who don't say the "options are not worth the (package) fees); and 32 percent say they are satisfied with their HDTVs because of their design features.

The Magid online survey was conducted in October 2009 using a nationally representative sample of 1,373 adults age 21 years or more who own an HDTV set.


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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.

Click TVPredictions.com to read more news and features on TV technology. 

 
 
 
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