I just got a new HDTV set last month and have been enjoying the crisp picture from DVDs, and HD channels from my cable provider. In fact, my HD set has changed how I watch TV.

I now watch HD content almost exclusively. My cable provider Comcast has a decent amount of HD channels and groups them in a separate part of the channel listing, plus I can also search and look at only the HD TV and on-demand channels. So I’ve been ignoring all the SD channels I have (which must be over 70 to 80) in favor of the 20 HD channels I get. In fact, I sometimes prefer watching an HD commercial over actual SD programming! The quality of the picture is so great, it’s almost not worth spending time watching SD content on an HD set.

I watch more HD sports. It’s football season and now I’m watching more football than ever. In recent years I haven’t watched much sports on TV, but now with HD I’ve been watching Sunday and Monday Night Football as well as the NBA. The quality is incredible; it seems like there are actual little men running around in my living room. In fact, a recent survey conducted by Motorola, found that more people (45%) would prefer to watch sports like college and NFL football on a HDTV than in person (32%). Watching in HDTV is almost like being there in person, with with the comfort of being at home and (if you have a DVR) the ability to pause, record and re-wind the action).

I watch HD music. I love all kinds of music, especially live music. I get MTV’s high definition music channel called MHD and watch that very often. It features live concert footage of artists like Bon Jovi, Alicia Keys or MTV concerts in HD format. The quality of the concert footage is simply stunning. The lights and sounds and crisp images make it seem like you’re live at the venue. Unfortunately, when I tried to watch music videos on Comcast’s on-demand menu, they were all SD quality. There was no option for HD music videos. Where can I find them? Surely artists are filming their videos in HD, so why can’t I find them?

Planet Earth. I can’t stop watching the Discovery series Planet Earth, a mini-series documentary that took over five years to film. The filmmakers used HD cameras exclusively to capture the majesty of the Earth’s planets, seas, and animals. It was simply made for HD. The other day I watched a slow-motion, high-speed video of a shark attacking a seal. And it was breathtaking to see the clarity, the detail of each split second. This kind of made for HD programming is what viewers want to see.

In sum, I want more HD content. What I have is simply not enough. And SD content seen on an HD set just looks crappy and fuzzy and out of focus. I can’t wait until everything on TV is HD.

Nick Wingfield from the Wall Street Journal writes about how no one’s really figured how  to watch Internet video on TV sets.  So far, products like Apple TV and Akimbo haven’t reached mass usage for a number of reasons such as they’re hard to use, hard to install, high cost and low value proposition because content can be found elsewhere.

Wingfield goes through the problems and talked to vendors to discuss possible solutions. For example, the problem of too many set-top boxes. Consumers need to know that a new stand-alone box gives them something they can’t get anywhere else. Things like new high def DVD players have the potential to keep a coveted place underneath the TV set. Also, game systems like PlayStation 3 and Xbox 360 act as set-tops since they can download music and movies.

The solution to this is incorporating features into existing devices or one new converged box. However, there’s no consensus on what that box might be. Will it be Tivo? A cable box with a DVR and Internet functions?

According to Scientific Atlanta, cable companies may end up winning this battle. Cable and satellite TV providers already provide the majority of DVR devices to U.S. consumers, so it seems possible that Internet connectivity will soon be a part of set-tops. Kip Compton, general manager at Scientific Atlanta said that cable companies will begin rolling cable boxes that can access Internet video next year.

However, others believe that cable companies won’t want to do this because consumers will be able to watch TV free by accessing content on the Internet. And that may impact their revenue.

Cable and satellite companies, however, need to think beyond their quarterly earnings cycle and think longer term. Consumers will be happier and increased usage in Internet video may mean better integration of digital media advertising and may spur other revenue that we haven’t even thought of.

IPTV services may have the biggest jump. In the U.S. AT&T’s U-Verse and Verizon’s FiOS TV services use IP networks to deliver broadcast TV programming. So integrating other IP features should be relatively easier than it would be for cable or satellite providers.

So far, however, IPTV providers are just ramping up in the U.S. so they’re just trying to roll out broadcast and VOD services and gain new customers. Advanced Internet features aren’t yet a big part of IPTV, either in the U.S. or the rest of the world where IPTV is much more mature.

An analysis by the Television Bureau of Advertising found that cable penetration fell to 61.3% of all TV households compared to 62.1% last year. That’s the lowest that cable penetration has been since February 1990.

It’s not a big drop, but it’s a sign that other broadcast TV providers are gaining. There’s no information on how the Internet other VOD systems are affecting cable penetration rates, but it’s likely there’s some cause-effect here.

Meanwhile, satellite and other TV providers are gaining on cable.  So called “alternative delivery systems” went from 24.5% last year to 28% this year.  Broadcast satellite is the leader in this category with an estimated 27.6% of TV households, up from 24 percent a year ago.

The study didn’t look at IPTV specifically, but it should be among the alternative systems since it’s usually delivered via fiber or DSL. But in the U.S. IPTV deployments have been rather small still, unlike Europe or Asia where IPTV is growing at a very fast rate.

AT&T and Verizon are now battling cable and satellite providers with their IPTV offerings in many states and communities, but so far their subscriber numbers are pretty low. AT&T’s U-Verse offering has about 126,000 subscribers, while Verizon’s FiOS TV has about 515,000 as of the end of the second quarter 2007.

Technorati Tags: cable penetration, cable TV, cable, satellite, IPTV 

Bonus: Press release from the TV Bureau of Advertising.

I recently got a new HDTV for my living room and that means a re-evaluation of my DVR.

Currently, I own a Series 2 Tivo which I’ve had for about a year or so. Previously, I owned a Panasonic ShowStopper ReplayTV that served me for about 5 years. (Yes, I came to the Tivo party late, but I think using DVRs other than Tivo gives me some good background and experience with DVRs.)

So now that I’m using HDTV, I got HD cable from my provider Comcast. So I had to upgrade my cable box and also decided to add on an HD DVR so I can record HD programming. It was just an extra $5 a month for the HD DVR and it gave me 30 hours of HD recording. Not a bad deal. The Comcast HD DVR works OK, but the interface and design isn’t as friendly or sophisticated as Tivo.

Nevertheless, I decided to use both DVRs. My SD Tivo is hooked up on one input on my TV, and the Comcast HD DVR is connected via HDMI to get me that clear digital HD picture. It’s working great so far. I can switch back and forth between HD Comcast and SD Tivo.

But as I started to watch more HD, I quickly realized one thing: I probably wouldn’t be using my Tivo much anymore. Why use my Tivo when it can only record in SD? The SD picture quality looks awful on my new HDTV set. It’s like being an expensive stereo, and only listening to AM radio.

An HD DVR is practically a necessity once you get an HDTV. But Tivo’s Series 3 DVR is too expensive. And the new Tivo HD ($300) just doesn’t have the features I expect in a Tivo product.

Even though I’m still using both DVRs at the same time, I realize I won’t keep my Series 2 Tivo much longer. I do still have lots of TV shows recorded on my Tivo that I’ve been meaning to watch. At the same time, all those unwatched shows are somewhat of a burden. These shows have been patiently waiting for me to watch them, but I choose to let them sit in Tivo purgatory.

An article at PC Magazine crystallizes my sentiments. The writer, Sascha Segan says that they’re leaving Tivo and getting a cable HD DVR. Why? Essentially it comes down to economics. Tivo’s Series 3 HD DVR costs $800 plus monthly fees of $20 vs. cable which is free and $5 monthly fee. (See the article “So Long, TiVo; Hello DVR“.)

Here’s a good quote:

Trust me. If I’m leaving TiVo, it’s in trouble. This breaks my heart; TiVo has always been friendly, innovative, fun, and easy to use. It should be celebrated, not abandoned. It’s a verb, for heaven’s sake. But by turning into a luxury product, it’s consigned itself to the quiet fringes of a bustling TV world.

Okay since that was written, the Series 3 Tivo has gone down in price somewhat ($600 rather than $800) but it’s still not enough. It’s still a luxury item. And a luxury item that I can’t afford to buy right now. Guess I’ll be using my cable company’s DVR for a while.

Bonus: Take the poll on HD DVRs.

Technorati Tags: HD, HDTV, Tivo, Comcast, satellite TV, digital video recorder, DVR, HD DVR

The New York Times has a story about how Tivo is finally making in-roads with advertisers, after many were initially mad at the company since it allowed viewers to fast-forward through ads.

In recent years, Tivo has been moving away from being a technology company that had to deal with hardware and subscriptions into a media/ratings company that is dealing with services.

How has it made this change?

• Creating a DVR Ratings Service. Its recently unveiled Stop|Watch service allows advertisers to track “second by second” movements by DVR viewers. This gives a more accurate count of who’s watching ads, how many people skip ads, most popular Season Pass shows and other top-rated shows. Tivo says its DVR ratings service has a larger panel than Nielsen’s (20,00 vs. 3,000).  NBC recently became a subscriber.

• Partnering with Advertisers. Rather than becoming enemies with advertisers, Tivo has grown into a media partner, giving them new ways to promote their products to their users.

• Creating New, Effective and Creative Ad Solutions. Because Tivo breaks new ground, it must also change how it advertises. As such it has created numerous new advertising buys including:

1. End of Show Text Ads. When a show ends, viewers are shown a short one line ad about a new show that they might want to watch. Or some other product that comes with a pre-downloaded video that viewers can watch for more information.
2. Thumbs Up/Record From Commercial. If you happen to watch (or fast forward through) commercials, you can see a thumbs up icon pasted on top of the screen. This allows viewers to hit their Thumbs Up button on their Tivo remote and record a show that’s being advertised.
3. Featured on Now Playing Screen. Sometimes ads appear just on the Now Playing menu, which is the menu that users go when they want to view their pre-recorded TV shows. A text ad sits on the bottom of the menu. If a viewer clicks on it, they are taken to an action screen with more information and possible a video/commercial to watch.

The Times story also said that things are looking up for Tivo in other ways. The lawsuit against EchoStar is progressing in Tivo’s favor, which may add substantial revenue if it finally gets the $90 million it was awarded (but is still in appeal).

Which means Tivo my soon be in a better place financially:

According to Tony Wible, an analyst with Citigroup, television networks now “have to embrace DVR advertising, and TiVo is a leader there.” He added that “the NBC deal adds a lot of credibility to that business, which I think could be as big or bigger as the current DVR business today.” He predicted that TiVo could start to break even in its quarterly earnings within a year.