To: BillyG who wrote (29781 ) 2/21/1998 2:21:00 PM From: Don Dorsey Read Replies (1) | Respond to of 50808
"All indications point to a consumer base which is ready and waiting for digital TV." There has been a lot of discussion about how x rated material will drive the industry in its early years, but I think the big breakthrough will come when the first football game is broadcast in HDTV. Calling up stats, selecting camera angles, choosing your own replays, selecting freeze frame, viewing the game in wide screen format ..... every fan will have to have one of these overnight. Focus Group Results The focus groups were conducted during August, 1997. Two groups were held in Orange County, CA, Atlanta, GA, and Dallas, TX. The sessions were moderated by the Verity Group, Inc., Fullerton, CA. Approximately 70 participated in the groups viewing demonstrations of a 35" 4x3 analog TV, a 34" 16x9 digital TV capable of 700 lines of resolution, and a 38" 16 x 9 HDTV capable of 1080 interlaced resolution. Roughly half of all group participants were pre-selected to represent early adopters while the other half were selected to represent mainstream adopters. Media Contact: Cynthia Upson (703) 907-7665 or Jonathan Thompson (703) 907-7664. For further information contact the CEMA Consumer Research Service at (703) 907-7970. Initial Observations: Consumers overwhelmingly prefer High-Definition TV to standard analog and standard definition digital TV (700 lines of resolution) in isolation and side-by-side comparisons. Consumers are aware of the costs broadcasters must incur to make the changeover to digital TV and they realize they will also have to purchase new TV equipment. No backlash against 2006 mandate. Quality sound is very important to the digital TV experience. The changeover to digital TV will lead to an increased emphasis on home theater and home stereo. One of the primary sources of information, especially for more mainstream adopters (those likely to buy after early adopters) to purchase, are home shows and technology reports on TV news programs. Consumers have high expecatations for digital TV as a portal to the larger digital domain including using the digital TV as a videophone, interactive videogame machine, or internet access device. In general, mainstream adopters don't want broadcasters to "multi-cast." Improving the quality of existing programming is of much more vital importance to the mainstream adopter. More Observations from the Focus Groups: Consumers feel digital TV has the ability to bring the family together by making TV an information and entertainment device that could stimulate education. Overall consumer interest, especially among more mainstream adopters, increased markedly when they considered the potential information/interactive aspects of digital TY including internet access. Modularity of components, especially among consumers familar with home computers, is of primary importance. Consumers want the opportunity to upgrade to higher performance components as desired. More than 18 million U.S. households already own a color TV for which they paid at least $2,000 at retail. When color TVs were introduced in the 1950s they cost the equivalent of $2,800 in today's dollars. The prices of consumer electronics typically drop 50% within the first 10 years on market. Observations on Early Adopters and Digital TV: Early adopters are highly aware of digital TV, HDTV and some even understand the differences between the U.S. digital system and the Japanese analog standard. Early adopters like the increased pace of technological advance because they understand the benefits which will accrue to them. Some worry HDTV will be watered down to make it more affordable. As for mainstream adopters, early adopters expect their digital TV to be more than a TV. They want it to have internet access and potentially videophone capabilities. Early adopters keenly articulate the desire for improved sound quality to accompany greatly improved picture quality. They also recognize the need to make additional purchases to optimize sound performance. Early adopters welcome converter box technology because it allows them to utilize some form of digital TV on all the sets in their houses right away, while buying an HDTV for their primary TV. Early adoptors are very interested in buying an HDTV which contains a fully-functional high powered personal computer which can work with digital camera, scanners, etc. Conclusions from Focus Groups: Consumers can differentiate and understand the vast improvements HDTV provides and they want to purchase the best quality picture they can buy. In side-by-side comparisons, consumers could plainly and clearly differentiate HDTV from lower resolution pictures. They described the picture as lifelike and crystal clear and immediately understood the benefits. Consumers want digital TV to be modular in the same way a computer is so they can add and upgrade components as they see fit. Sound quality is equally as important as picture quality in the digital TV experience. In fact, they expect better sound to accompany a better picture. Early adopters want the highest definition picture they can get and will not settle for anything less. They want and expect their cable TY provider to upgrade and provide HDTY. Content including educational programming, sports, and movies will drive the early mainstream adoption of diigital TV. Later, interactive services including videophone may be vitally important. All indications point to a consumer base which is ready and waiting for digital TV.