No Resolution Of DTV/HDTVís Future At DTV Summit

The Consumer Electronics Manufacturers Association (CEMA) held its fourth DTV Summit in early March, but there were no compelling reports of HDTV delivery plans from those digital broadcasters on the panel. They did, however, acknowledge that much of their digital programming is upconverted analog programming rather than true digital sourced material. Satellite and cable broadcasters offered no substantive programming schedules either, but did indicate that plans were in the works for future digital and HDTV programming.The results of several consumer focus groups indicated that consumers, after seeing HDTV demonstrations, had very favorable reactions to HDTV picture quality. One in five consumers, representing about 11 million households, were reported by CEMA to have visited a retailer in the past 12 months to see or ask about DTV. Nearly 60 percent of those said their next television purchase would be a digital set. Still, it was noted that consumers familiar with the term DTV were confused about the terms HDTV, SDTV and analog television.The retailer panelists represented by Dow Stereo & Video Director Tom Campbell, Tweeter etc. Marketing Vice President Noah Herschman, and Meyer-Emco President Jon Meyer reported strong consumer reactions to in-store HDTV demonstrations, but only small DTV sell-through figures. Campbell noted that Dow has sold 173 HDTVs in seven months in a market that does not yet have HDTV. Dowís success was attributed to the retailerís focus on ""analog television being upconverted, as well as DVD, which is an integral part of our demonstrations showing HDTV for the future,"" said Campbell. But Campbell noted that Dow was concerned with the potential for buyersí remorse due to the lack of HDTV programming availability and said, ""Weíre worried that we might see, to borrow from the Elvis Presley song ëReturn To Senderí, Return To Vendor.""On that note, despite DTVís potential, panelists warned the system might sputter unless the various industries come to quick agreements and settle the lingering unresolved standards issues. Those at the forefront are digital copyright protection, cable and consumer electronics equipment interoperability, digital signal interface and datacasting.The issue of pricing was discussed and recognized as an obstacle to consumer acceptance of DTV. Several manufacturers, however, implied that price cuts were evident, sooner than later. Bob Perry, Marketing Director for Mitsubishi said that there would be a ""dramatic reduction in the planned retail prices of products for this fall.""