Why HDTV Owners Don't Watch HDTV

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Why HDTV Owners Don't Watch HDTV
The industry is being too passive in signing up new customers.
By Phillip Swann

Washington, D.C. (December 10, 2006) -- Several research firms have said in the past year that less than 50 percent of HDTV owners have their TVs set up to watch high-def.

And, perhaps worse, Frank N. Magid Associates said recently that only 25 percent of current HDTV shoppers said the main reason they wanted to buy one was to watch high-def.

Instead of watching HD, they plan to use their expensive new sets to watch DVDs on widescreen or simply enjoy the improved digital picture.

The statistics may be shocking to those who haven't followed the HD business for awhile. But for several years, many observers (including yours truly) have warned that the industry is not doing nearly enough to educate consumers on the ins and outs of high-def.

And the research studies suggest that that failure has taken its toll. Although millions of people are buying high-def sets, consumer acceptance of the technology is moving more slowly than it should. (Although Magid does say that 70-75 percent of HD buyers over the last three years have gotten tuners, which is an improvement.)

Consequently, the number of real high-def viewers is far less than the number of real high-def owners. This hurts the HDTV industry in a number of ways. For example:

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HDTV networks such as HDNet, INHD and Discovery HD Theater can not charge as much for advertising because the HD audience is still relatively small.

This is one reason why you haven't seen the launch of more dedicated HDTV channels. (And if you had more dedicated HD channels, more people would be encouraged to watch high-def.)

Likewise, broadcast networks such as CBS and NBC might hesitate before deciding to produce a certain show or sporting event in high-def because the extra cost may not be offset by additional advertising from high-def related companies.

Do you think that CBS would air more than three NFL games a week in high-def if the HD audience was 30 million people instead of 12 million? I do.

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What's Wrong?
So what is the industry doing wrong?

Numerous studies have shown that many people buy a HDTV without knowing they need a tuner to receive high-def signals. Even more amazing, some think that everything that airs on a HD set is in high-def -- whether they have a tuner or not. Yes, even the non-HD channels.

However, most cable and satellite operators (and TV makers) have still not exploited this glaring lack of consumer awareness in their promotional campaigns. If they simply informed people that they needed a tuner, many people would be happy to get one, particularly if they knew that their TV provider would bring one to their home as part of their service. Few would say, "Oh, no thanks, I don't want my picture to be clearer and more detailed."

(And, DIRECTV, having Jessica Simpson say in a commercial that you have 1080i is not enough; she tells the camera that she doesn't know what 1080i is -- and neither do the viewers, nor do they care.)

The poor performance of TV makers here is almost understandable; they just want to sell the set. But cable and satellite providers are leaving dollars on the table by not getting more HD owners to upgrade to high-def service.

And once people started watching real HDTV, they would be more likely to answer "yes" to survey questions like, "Do you look forward to watching HDTV?"

And they would be more likely to spread their enthusiasm to friends who go shopping for a high-def set. (Which would raise that 25 percent number in the Magid study.)

With high-def prices falling fast, the industry needs to step up now before it's too late. Millions of people may buy a new HDTV this holiday season. The industry doesn't want them to become part of a permanent class of non-HD watching viewers.

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© 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.

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

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