[opendtv] PR: New Research Proves HDTV Still 'Fuzzy' for Consumers

  • From: OpenDTV <opendtv@xxxxxxxxx>
  • To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
  • Date: Thu, 8 Dec 2005 10:22:48 -0500

New Research Proves HDTV Still 'Fuzzy' for Consumers

Scientific-Atlanta and Cable Companies Help Consumers 'Get Connected' 
and 'Get Clear' on the Big Picture

ATLANTA, GA - December 6, 2005 - High-definition televisions (HDTVs) 
are available everywhere, and people are buying them. HDTVs are 
selling rapidly in retail chains, online warehouses and/or local 
consumer electronics outlets, showing that consumers want HD 
programming. According to recent Forrester Research data, HDTV sets 
will be in approximately 16 million homes across the U.S. by the end 
of the year. But, Forrester predicts just seven million of those 
households will actually be watching HD programming from their video 
service provider in that timeframe, suggesting that many consumers 
are buying HDTVs but then not taking the additional steps required to 
receive HDTV services.

To better gauge consumer appeal for and understanding of HDTV 
services, Scientific-Atlanta commissioned a nationwide telephone 
survey of over 500 U.S. high-definition television owners. The survey 
was based on an analysis of consumer awareness about HDTV and the 
equipment needed to watch it. The analysis identified misperceptions 
of HDTV owners that could help explain why demand levels for HD 
services have remained significantly lower than HD television 
adoption rates. Results show that nearly half (49%) of HDTV owners 
surveyed are not taking full advantage of their HD televisions, as 
defined by receiving HD channels and having special equipment to 
watch HD programming (including an HD set-top box, a CableCARD, 
and/or an antenna).

The 'Truth'

Although there are exceptions, (such as off-air viewing or "in the 
clear" programming), in most circumstances, if you are a cable or 
satellite customer, you need an HD set-top box or a CableCARD to view 
HD programming. The box or CableCARD acts as a decoder for encrypted 
HD channels. Those HD television owners polled who believed they were 
receiving HD service but lacked the proper equipment had varying 
reasons for not getting the equipment:

     * Close to one in four (28%) of HDTV owners reported that they 
did not get any special equipment from their service provider to 
watch HDTV channels because the picture quality was already improved 
with the purchase of an HDTV.
     * 23% of HDTV owners did not invest in special equipment to watch 
HDTV channels because a message at the beginning of the programs they 
watch tells them that those programs are being broadcast in HD.
     * Nearly one in five (18%) reported that they believed the HD 
television would give them high-definition channels without 
additional equipment.

In a separate survey that polled over 2,000 of Scientific-Atlanta's 
(Explorer) eClub members with HD capable set-tops, more than 35 
percent of HDTV owners learned that they need to get an HD 
content/service package to view HDTV programming from their cable 
operator. With more than 26 percent of HDTV owners without HD service 
actively planning to subscribe to HD service in the next six months, 
and 28 percent researching options, cable companies have a great 
opportunity to tap into an impressionable consumer audience through 
concentrated marketing and consumer education tactics.

"HDTV isn't complicated if you are aware of the equipment and 
subscription service you need to get it," said Pat Hurley, director 
of research, TeleChoice, and co-author of 'HDTV for Dummies'. "For 
the same amount of money you would spend on a few cups of coffee a 
month, you can receive true HD service from your cable company. They 
bring the HD cable receiver to your house, take care of all the 
installation and hookup, and show you how to navigate to the HD 
channels. It's that easy."

"Unfortunately a large number of HDTV owners are missing out on the 
opportunities to watch true HD," said Dave Davies, vice president of 
strategy and product marketing, Subscriber Networks, 
Scientific-Atlanta, Inc. "The key is to educate consumers on the 
fundamentals of HDTV, and then help them get connected with the 
service that will bring their HDTV to life as it is intended. We hope 
that the True-Def of Hi-Def campaign will help consumers get the most 
return on their HD television investments."

To address the consumer confusion surrounding HDTV and help consumers 
leverage their HD television investment, Scientific-Atlanta is 
working with cable operators to launch 'The True-Def of Hi-Def' - a 
consumer education campaign focused on HDTV.

Scientific-Atlanta will work closely with cable companies to 
introduce 'The True-Def of Hi-Def' campaign into key markets and 
encourage a deeper consumer understanding of the HDTV experience 
nationwide. The campaign will integrate both public affairs and 
direct marketing elements to allow consumers to see, learn and 
experience the differences between standard definition and 
high-definition programming, and to better understand the necessary 
equipment required to truly experience the improved picture and audio 
quality that comes with HDTV service.


The nationwide phone survey was conducted by StrategyOne via 
telephone from September 23-30, 2005, utilizing the field services of 
Opinion Access and a targeted list of HDTV owners 18 years of age and 
older . A Computer Assisted Telephone Interviewing (CATI) facility 
was used. The online survey of Scientific-Atlanta's (Explorer) eClub 
members was conducted from September 2-7, 2005 to identify additional 
HDTV trends and collect additional consumer feedback.
Note to Editors:

To obtain a summary of the results from Scientific-Atlanta's 
'True-Def of Hi-Def' studies, visit 
About Scientific-Atlanta

Scientific-Atlanta, Inc. (NYSE: SFA - 
http://www.scientificatlanta.com) is a leading supplier of digital 
content distribution systems, transmission networks for broadband 
access to the home, digital interactive set-tops and subscriber 
systems designed for video, high-speed Internet and voice over IP 
(VoIP) networks, and worldwide customer service and support.

"Forward-looking statements," as defined in the Private Securities 
Litigation Reform Act of 1995, may be included in this news release. 
A variety of factors could cause Scientific-Atlanta's actual results 
to differ from the anticipated results expressed in such 
forward-looking statements. Investors are referred to 
Scientific-Atlanta's Cautionary Statements (Exhibit 99.1 to the 
Company's most recent Form 10-Q), which statements are incorporated 
into this news release by reference.

Contact Info
Sara Stutzenstein, 770.236.2181, sara.stutzenstein@xxxxxxxxxx
Peggy Ballard, 770-236-7871, peggy.ballard@xxxxxxxxxx

For more information visit http://www.scientificatlanta.com. Writers 
and editors may access a variety of information on the company and 
its product, as well as downloadable images, by selecting News Center 
from the home page.

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