To: BillyG who wrote (34958 ) 8/5/1998 11:17:00 AM From: Don Dorsey Respond to of 50808
CONSUMER AWARENESS AND INTEREST IN HDTV INCREASING Recent Consumer Research Provides Insight on DTV Consumer, Factors Likely to Influence DTV Sales ARLINGTON, VA., Aug. 3, 1998 - The Consumer Electronics Manufacturers Association (CEMA) today released the final results of a recent consumer survey on the digital television (DTV) transition. The results show that consumer awareness of high definition television has increased dramatically in the last 12 months, and this familiarity has led to increased levels of interest in DTV. Conducted in July, the research identifies characteristics and categories of DTV consumers, and outlines factors likely to be critical in DTV purchase decisions. "We are pleased to see that the industry's efforts to educate retailers and consumers about digital television have been successful - the research shows that consumer awareness has nearly doubled since April 1997. This increased awareness coincides with increased interest in DTV and consumer demand for first- and second- generation product," said Gary Shapiro, president of CEMA. According to the survey, 58 percent of consumers are aware of the terms "high definition television" and "HDTV", up from less than 30 percent in April 1997. About 42 percent of U.S. adults feel they know at least somewhat more about digital TV than they did this time last year. Increased familiarity has produced increased levels of interest. More than half of those who say they've become more familiar with the DTV transition during the last year are also much more interested in buying a digital TV. Seventy percent of consumers surveyed said they would go to retailer stores this fall to see DTV demonstrations. "Retailers can expect consumers to flood their stores to see DTV demonstrations this fall. When they buy DTV will depend on a variety of factors. This survey gives retailers and manufacturers some important information about what these factors are," said Todd Thibodeaux, CEMA vice president for market research. According to the survey, awareness and interest in DTV vary among different generational groups. For example, baby boomers are slightly more aware of digital TV terms than Generation-X and much more familiar than Seniors. Members of Generation-X have the highest likelihood to buy DTV among the groups. They also have the most positive outlook about the coming of DTV. Generation-X will also rely more on financing to get DTV. The survey shows that movies and sports will drive sales of digital TV. Movie fans are more familiar with digital TV than fans of sports programming and sitcoms, and accordingly have a higher interest in investing in the new technology. About half of the movie fans surveyed will consider buying a digital TV because of movies. Research results identified three categories of DTV consumers - purchasers (those most likely to buy DTV early), wannabes (consumers interested in DTV but not likely to be first-generation buyers) and mules (consumers lacking knowledge and interest in DTV). The survey results identify specific demographics and buying characteristics for these categories of consumers. The research was conducted July 6-14 by CEMA via phone to a random national sample of 1,000 adults. The research is available by contacting CEMA.