[opendtv] PR: New Research Proves HDTV Still 'Fuzzy' for Consumers
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- 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.
Background
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
www.scientificatlanta.com/newscenter.
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.
Related Links
www.scientificatlanta.com
www.scientificatlanta.com/newscenter
www.explorehd.com
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