Lack of Programming and High Prices Slow HDTV Adoption in Detroit, 1999

Detroit Free Press: Nov. 18--
High-definition television hit Detroit last year with promises of revolutionary, razor-sharp pictures and Dolby sound, but high prices and a lack of programming in the first year have kept consumers from latching onto the new technology.

Over the last year, digital television sales fell 30,000 sets short of the 120,000-set goal the Consumer Electronics Association hoped to meet. As of the end of October, manufacturers sold 88,023 digital television to retailers.

"We have the technology in place, but consumers want to know what that technology will give them," said Tim Redmond, vice president of engineering at WJBK-TV (Channel 2). "People won't spend thousands of dollars until they know how it will change their life.

"They need the killer application," he said. "The PC didn't take off until people saw a need for it."

But manufacturers, retailers and broadcasters also say high-definition television is beginning to catch on as prices fall and more stations offer digital programming.

"We're beginning to see momentum," said Jeff Joseph, a spokesman for the association that represents electronics manufacturers.

In September and October, factory sales soared for digital televisions. In those two months alone, 36,492 sets were sold to stores. In July and August, factories sold two-thirds fewer sets -- 11,316 -- to stores.
And though no one has exact figures, some retailers and broadcasters estimate that more than 800 sets have been sold in metro Detroit.

Digital televisions eventually will replace the traditional televisions that pick up analog signals over the airwaves. All viewers will have to buy a digital set or a converter box that will allow their analog set to pick up the digital signal.

Unlike analog broadcasts, digital technology uses computer codes of ones and zeros to send pictures and sound.

Digital broadcasts are not susceptible to the interference that causes snow and ghosts in analog broadcasts. Digital broadcasting makes it possible for viewers to see HDTV, the highest quality of television today.

Most major television stations in the country -- including three in Detroit -- have started broadcasting in both analog and digital signals. WXYZ-TV (Channel 7) and WJBK began their digital broadcasts last November. WWJ-TV(Channel 62) began digitally transmitting its programming earlier this year.

All stations will be required to broadcast analog signals until 2006, but the deadline could be extended if fewer than 80 percent of viewers don't have the equipment needed to get the digital signal.

The picture on a typical analog set is made of about 525 lines of pixels, which are dots of light. HDTV requires sets that can break the picture down into at least 720 lines. More lines of resolution allow the picture to become clearer and deeper.

HDTV is broadcast as a rectangular picture shaped more like those on a movie screen than the squarish pictures on typical TV sets.

But critics worry that digital television will split the country into the haves and have-nots. Consumer groups say broadcasters and advertisers will use the new technology to target ads at specific groups, further separating people into socioeconomic classes.

And while the prices of the sets are dropping, making them accessible for more people, they are still out of reach for many.

When the digital televisions hit stores last year, they cost upward of $9,000, complete with the converter boxes. Now, a set alone without the special converter box can be purchased for as little $2,500. The boxes can be purchased for about $1,500.

Rob Lathers, a buyer for ABC Warehouse, said falling prices make the digital sets attractive to customers who want to buy big-screen televisions, which are often in the same price range as the large-screen HDTV-ready sets.

"Customers don't always know how it works, but they know it will be necessary and it's comparable to what they will spend anyway," Lathers said.

He said many customers buy the set and hold off on buying the converter boxes.

Best Buy spokeswoman Laurie Bauer said prices are falling as more manufacturers begin producing different models, giving customers more choice.
"Last year, there were two, now we have 12 to choose from," Bauer said.

Customers are also seeing more digital programming from broadcasters.

ABC broadcasts its "Wonderful World of Disney" movies and " Monday Night Football" in high-definition format. FOX offers shows such as "Ally McBeal" and "Get Real" in the HDTV format. And CBS has started broadcasting nearly 80 percent of its prime-time lineup in the new signal.

"There's a voracious appetite for electronics in the United States," says Kevin Cuddihy, general manager for WWJ-TV. "High-definition television is just one part of that."