The Big Picture, Still Stuck in the Backseat?

Cable World,  Jan 9, 2006  

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CW: How do programmers contribute to that dialogue, so customers get the benefits of HD?

Asch: One way we do that is with creative, innovative programming. What we can help the operators with is running shows that demonstrate the benefits of HD. Sports look great in HD. Customers who play music programming in HD, who have surround sound at home, really get a benefit. The more programming we can provide hopefully can translate into a good consumer experience.

CW: There's a perception that there's not enough HD programming out there. True?

Burns: We've come to the point in this industry where we can say that's patently untrue.

The week of Nov. 6 [2005], we looked at all of the SD/HD simulcast services--ABC, Starz, Fox, NBC, Showtime, ESPN2, The WB, TNT so on and so forth. All have rated programming. We took a look at what the aggregated rating points were delivered nationally to programming on those channels delivered in HD. It was more than 1,000 rating points...Boston Legal, West Wing, CSI Miami, Commander in Chief, you can pick them. The shows people are watching are now available in HD. Those shows delivered more than 1 billion household viewings in one week. Those who say there's not enough available simply don't know what they're talking about.

CW: Are there other deterrents?

Burns: One of the major deterrents to HD was high TV set prices. But retailers will tell you that price has become less and less of an issue, or it's no longer an issue. It's more about financing now, such as paying no interest on a set until January 2008. When you walk into your local Circuit City store, literally HD is all they're selling. It's very hard to find a 4 x 3 set to buy these days. HD is what's going out the door.

CW: How much will HDTV prices plunge in 2006?

Asch: You already see prices on some models falling below $1,000 a set. What will happen is that the 40-inch HD sets get to $1,000 by the holidays in December. That's a guess, but seeing how fast the prices are coming down, a good one. Depending on where you go and the size of the set you want, you can buy HD models in the $500-800 range. When you get the 40-inch sets at that price, we'll see a tipping point in customers for HD.

Burns: It's fascinating to see what's happening at retail, You can look at Harvey Electronics in New York City, or any Wal-Mart in America and you can buy an HD set now for under $600. There's something out there for everyone, and what has occurred here is based on the space you have in your viewing location-- I choose those words carefully--no matter who you are, your next set should be an HDTV.

Asch: With the price coming down, people are not just buying the primary HD set for the living room or the dining room. Prices are coming down enough for you to put a small HD set in the bedroom.

Rooney: A smart CE manufacturer will try to keep the price above $1,000 and get you to buy a bigger set than you picked up last year. When you see the big HD sets, it's hard to say you could save a hundred bucks on a smaller set.