February 23, 2008

13 Million U.S. Households Not Ready for DTV

Filed under: Digital TV, Digital TV Transition — Jose Alvear @ 10:17 am

Nielsen released some data on the readiness of U.S. consumers for the digital TV transition (happening on February 18, 2009) and found that over 13 million households are not ready. (Come on people, it’s less than a year away now!)

Last month, I wrote a post about some anxiety about the public’s readiness for the transition. This study is very interesting because it breaks down information on readiness by age, race, ethnicity and geography. For example, Nielsen found out that NY was the most prepared state: just 3.5 percent of TV sets are still not equipped for digital broadcasts. The least prepared? Portland, Oregon where 22.4% of households still are using analog TV sets.hdtv.JPG

Some other nuggets:

  • Whites and Asians are more ready than Blacks and Hispanics. When multiple TV sets are factored in, 26.2 percent of Hispanics have one more unready sets.
  • 16.8% of all households have at least one analog television set that would not work after the switch.
  • Adults over 55 are better prepared than younger households (Say what?)
  • Overall, if the digital turnoff happened today, 10.1% of households would find themselves without a TV.

So are you still confused about the switchover? Worried about losing your TV? There are really three choices:

  1. Buy a brand new DTV
  2. Buy a converter box for your old TV
  3. Subscribe to a digital TV service through your cable, satellite or IPTV provider and keep your old TV.

Now, you don’t need to buy a big-screen LCD or Plamsa HDTV set. Just make sure it’s digital ready sets. But at this point, if you don’t have an HDTV, this year will be a great time to get one. Prices for HDTVs are down tremendously from just a few months ago (like when I bought my HDTV). In fact, prices are probably as low as they’ve ever been.

Want proof? Ok, I did a quick search on some of the big online retailers and found some excellent bargains for HDTV sets.

Target.com: 32″ Westinghouse HDTV with DVD-$749

Target.com: 19″ Magnavox LCD HDTV for $329

Target.com: 37″ Olevia LCD HDTV for $949

Walmart.com: 26″ Vizio LCD HDTV for $464.

Walmart.com: 19″ Polaroid LCD HDTV for $277.54.

Not all are big brand names, nor are they huge, but they’re enough to get you HD, digital broadcasts and a flat screen. Perhaps people will spend their tax rebates on getting new TVs this year.

Bonus: PDF of Nielsen’s Press release that has some tables.

Bonus #2: Go to TechBargains to see daily deals on everything including cheap HDTV sets.

Technorati Tags: , , , ,

January 10, 2008

Anxiety Over Analog TV Cut-Off

Filed under: Digital TV, HD — Jose Alvear @ 1:01 am

The digital TV transition occurs on February 17th, 2009. That’s just over a year from today. But many people are getting concerned that consumers just aren’t ready for the analog-to-digital transition.

In recent weeks, there have been reports that the FCC was considering pushing back the digital transition. However, the FCC chief said at CES that the February 2009 date was a “hard deadline” and that postponing the date would “dis-incentivize” the industry.dtv2009.JPG

The CEO for Best Buy said that he was “very nervous” about being able to supply consumers with digital TV converter boxes. Consumers that don’t upgrade to a new digital TV set will have to use these converter boxes in order to continue to watch TV. That’s because broadcasters will be shutting off their analog transmissions and going digital.

In December 2007, a study by the Government Accounting Office said that the U.S. has no real comprehensive plan for preparing viewers for the transition.

“Despite efforts by the public and private sectors and ongoing coordination, we found that no comprehensive plan for the transition exists,” the GAO said.

If you’re stuck with an old-fashioned TV set with a regular antenna (no cable or satellite) you should either upgrade to a new digital set or buy a digital converter box.

However, not everyone thinks that supply of the boxes will ready in 13 months.

“I think it’s one of the biggest risks our industry has,” [Best Buy's] vice chairman and CEO Brad Anderson told an industry audience at the International Consumer Electronics Show in Las Vegas.

Nielsen says that about 14.3 million households still are using over-the-air television. So this is either a golden opportunity for TV providers like cable, telecom and satellite companies, or for digital TV manufacturers.

Another problem is customer education.  Many people are still confused about what the digital transition means and if they’ll still be able to watch TV.

Major retailers say that boxes will be on sale soon, costing between $40 and $70.

Additionally, National Telecommunications and Information Administration (NTIA) is offering $40 coupons to households that own analog sets and want to buy a digital-analog converter box.

Interested in getting a coupon? Visit www.dtv2009.gov and apply online.

Technorati Tags: , , , , , , ,