High Def TV: What Are You Waiting For?

By The Myers Report Archives
Cover image for  article: High Def TV: What Are You Waiting For?

Jack Myers Think Tank

Do you have high definition television yet? If yes, do you love it? If no, what are you waiting for?

As I have watched the U.S. Open Tennis event for the past two weeks on high definition television, I've been struck by what an extraordinary difference it makes to the home viewing experience. High definition is and always has been the killer app that is driving increased penetration of digital set-top boxes. Although cable operators put their eggs in the video-on-demand basket, and more lately have been forced to accept that consumers really want DVRs with advanced features, it is high def that that really pushes consumers' buttons.

Why cable operators were so slow to embrace high def is beyond comprehension, except that CES manufacturers are the primary beneficiary and cable operators want the upside of ongoing programming sales, rather than small monthly upgrade fees. Cable operators don't want to import other companies' technologies and don't want to funnel anything but their own products and services through their pipes. It's this same philosophy that keeps broadcasters and cable operators at each others throats.

Have you spent any time watching your favorite programs on high def? Once seen, it's nearly impossible to go back to standard TV. It's not only sports; prime time dramas are awesome in high def. Even Iron Chef is better in high def. Within the next year, almost every program – from early morning news to late night talk shows – will be available in high definition.

3-D TV Is On the Horizon

Direct TV and Dish network are ahead of the curve, promoting 40 high def channels. In labs on the West Coast, South Korea, Japan and China, manufacturers are hard at work developing three dimensional TV screens to take the experience even further. Online virtual worlds are already 3-D, and younger consumers spending time in these worlds and video games are learning to expect a 3-D experience. Television is the inevitable next step.

Until recently, though, cable operators have perceived high def as an upgrade opportunity once the digital set-top is in the home. It's only in the past year that they've realized high def is driving set-top purchases, and once in the home subscribers are more inclined to make VOD purchases. The fact that more than one-third of high def set owners have yet to upgrade to high def cable or satellite service is testament to the incredibly naïve and poor job operators have done to market HD set-top functionality.

Advertisers Need to Step Up to High Def Production

The other world that is just beginning to wake up to the high def imperative is the advertising community. Again, if you're a fan of high def you already know what I'm talking about. When the high def picture suddenly shrinks to accommodate an analog standard 4x3 commercial, it looks absolutely amateur. It's especially egregious when auto manufacturers and companies seeking to present themselves as advanced fail to realize how out-of-sync they appear to consumers. Talk about engagement – we need new research that points to negative engagement when consumers consciously or sub-consciously note that a company is out-of-step with the times.

High definition TV set costs are dropping quickly and the vast majority of sets sold today are large screen and high def. Cable operators need to put a full court press on to market service subscriptions; advertisers need to produce commercials in high def. When all broadcast signals are required to convert to digital in February 2009, it will be high def that will make the conversion a no brainer for many, many consumers. So if you don't have high def yet, what's your reason?

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