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BizReport : Research archives : February 02, 2010

Report: HDTV set owners don't necessarily have HDTV programming

It's another broadband type idiosyncrasy: HDTV set owners don't necessarily have HDTV programming. Much like consumers who purchased broadband/high speed ready computers in the early 2000's, the availability of the programming hasn't reached everyone owning the technology. A new report from Frank Magid Associates about 43% of US households own a high definition type television set but about 14 million of these homes do not have HDTV programming services.

by Kristina Knight

"[This] reveals a major opportunity to increase programming subscriptions and to close the gap between set buyers and service adopters though improved marketing and education," said Jill Rosengard Hill, Senior Vice President. "Since marketing buzz has waned after the digital transition, HD is fading as a top-of-mind feature for some consumers."

The report indicates that although service continues to lag consumers know the difference and are trying to bridge the gap. Researchers found that:

• 43% of HDTV set owners signed up for HD service when purchasing their sets
• 42% state HD service is not 'worth the fee' structure
• 32% like the look of HD sets
• 16% are interested in high-def satellite service
• 22% are interested in high-def cable service

Although the challenges of high definition service are basically the cable and satellite operators' challenges, savvy marketers will take into account that all consumers are not in the high-def marketplace. While creating a cool 3-D interactive ad may seem like a good way to engage the audience, the fact that about half of consumers are without high-def service shows this is not a good way to spend marketing cash. Instead, marketers should think about other ways to engage the consumer and offer a video ad that is different - and yet can be seen perfectly in both high-def and non-high-def.

Tags: Frank Magid Associates, HDTV, television, television advertising, video campaign, video marketing

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