HDTV Attracts Premium Viewers, Says Report

The research found that 13% of US consumers now have a HD-enabled television. These appliances transmit six times as much information as regular sets resulting in a high resolution picture and digital surround sound. They also have wider, cinema-like screens which add to the viewing experience.

Of those who do not have access to HDTV, 81% said they were aware of the technology and 47% believe they will consider buying a set within one to three years. Only 13% of those questioned said that they saw no value in HDTVs and did not intend to purchase one in the near future.

Revenue issues All this would seem to indicate that HDTV is on the brink of a boom. However, DVDs have a stranglehold on the home entertainment market and there is competition to come from emerging platforms such as video-on-demand (VOD) (see Subscriptions Key To Video On-Demand, Says Jupiter).

Dove deduced that HDTV owners and those most likely to buy one have a substantially greater interest in movies than the average consumer. Nonetheless, by implication they also watch more DVDs and it is up to HDTV providers to demonstrate that they can offer film buffs a better value product. Sport is also seen as a potential money spinner for operators.

According to the report, over 75% of HDTV owners are willing to pay a fee for a HD programming package and one-in-five would be prepared to contribute more than $10 per month. Unsurprisingly, non-owners are more diffident with 60% maintaining that they would not fork out more than $5 per month.

Other sectors The advance of HDTV should be of interest to cable and satellite operators as 15% of consumers reported that they would consider switching providers if high-definition programming was available. Among HDTV owners, this rose to 32%. One-in-four consumers said they would be more interested in buying a HDTV if a cable/satellite provider made compliant set-top boxes available.

The survey also showed that HDTV viewers are more likely to purchase other cable services and pay for one-off presentations. Approximately 50% now subscribe to digital cable, as opposed to just a third of non-users and HDTV owners access 1.14 pay-per-view events in an average month. By comparison, non-owners order 0.4 PPVs.

In a separate study published last autumn, Strategy Analytics estimated that by 2008, 49% of US households with HDTV sets will actually use the programming. Of those, 27% will be cable, 14% will have satellite and 8% will rely on terrestrial.