Apsattv
24-01-2008, 11:03 PM
From http://www.nwaonline.net/articles/2008/01/19/business/012008digitalswitch.txt
The upcoming digital transition sounds simple enough, but despite a major public education campaign, consumers are reacting with a Y2K-sense of urgency and doom.
Don't panic. Your beloved TV will be fine.
But it if it's not digital and you don't subscribe to cable or satellite, you'll need a cigar-sized converter box if you expect to pick up a signal after the Feb. 17, 2009 transition from over-the-air broadcast to digital signal. A government coupon program will cover most of the cost.
But for a transition that is a year away and promising to improve TV viewing, the issue has created much confusion, frustration and even panic for TV viewers.
"The industry is scaring the heck out of the public to make them think their TVs are going to be obsolete and go to black, and they are panicking," said Tommy Gomez, owner of Fort Smith-based Monty's TV and Electronics. "I don't mind selling a few more TVs, but someone needs to tell them the truth."
Even with a $7.5 million effort from the government to educate the public, and another $697 million -- yes, $697 million -- awareness campaign by The National Association of Broadcasters, people are alarmed rather than informed. And they are directing their concern to anyone they can find, from their children to their local television station.
CONSTANT QUESTIONS
"I get calls all the time from viewers asking about all aspects of the switchover," said Van Comer, president and general manager of local CBS affiliate KFSM. "I've personally taken well over 100, but I'm sure it will increase."
According to ratings veteran A.C. Nielsen Co., 43,000 people in the Northwest Arkansas and Fort Smith markets receive broadcasts through an analog signal, which accounts for about a third of the state tally of analog viewers.
The Consumer Electronics Association recently reported that more than half of U.S. households own a digital television. The Arlington, Va.-based trade group projected digital TV sales to increase another 13 percent in 2008.
But most households have multiple televisions, meaning many of those digital TV owners aren't entirely off the hook when the transition takes effect next year.
According to Nielsen data, 66 percent of households have three or more televisions. That means that while that living room and bedroom TV hooked up to cable won't require any action to get a signal after the switchover, that lone TV in the kitchen or basement that gets one or two channels will need a converter box.
And while it might seem like a hassle to get a converter box for a TV you only watch while cooking, that analog set that used to pick up a channel or two will get a dozen or so with the new digital signal and a converter box.
Retailers expect a surge in consumer questions once the converter boxes become available next month.
COUPON HELP
Earlier this month, the National Telecommunications and Information Administration began accepting requests for two $40 coupons per household to be used toward the purchase of the boxes, expected to cost between $50 and $70.
One box, manufactured by EchoStar, will retail at $39.99. The group has certified 25 converter boxes, according to Shermaze Ingram, a spokeswoman with the National Association of Broadcasters.
Already, consumers have taken action. The government has given out or processed requests for 3 million coupons, or about 10 percent of the coupons that will be available, according to Ingram.
But before rushing to order a converter box, first determine if your TV is digital or cable. If the TV has a turn-knob, antenna or rabbit ears, or is more than 5 years old, it is likely analog. If the TV in question was purchased within the last 3 years, chances are it's digital and it will say so right on the set.
At least one retailer is trying to calm the confusion consumers might have when going to buy a new TV. Best Buy pulled analog TVs from its shelves in October.
"When people come in, they know that everything they see will work after the transition," said Brian Lucas, a Best Buy spokesman. "It eliminated at least one element of confusion at our stores."
But not all retailers have abandoned analog TVs.
SELLING OLD TVS
The government has allowed retailers to continue selling analog TVs, but they must be labeled with a consumer warning stating that after the transition a converter box will be required to receive a signal.
Wal-Mart spokeswoman Melissa O'Brien said the Bentonville-based retailer stopped ordering analog TVs prior to March 2007, but still have less than 1 percent inventory in analog TVs left on the sales floor.
"Those few that are in stores are at a very reduced price," O'Brien said. "They will still work with cable, satellite or a converter box after February 2009, but demand for high-definition TV has been so strong that its sales overtook the analog market a while back to become the majority of what we sell."
Some sources said analog TVs remaining on the market is one of many factors complicating the issue to consumers.
POOR PLANNING?
The quick commercial spots appear to have alarmed rather than informed consumers, and the elderly -- the people most likely to be affected by the transition -- are least likely to understand it or want to invest money in free television programming.
"The consumer does lose in this, and unfortunately the education could have happened a lot sooner. This rush to educate people at the last minute is kind of unacceptable," said Lisa Carver, a retail consultant with Bentonville-based Newmarketbuilders.
Carver, who recently returned from the annual Consumer Electronics Show in Las Vegas, said she sensed at the trade show that manufacturers and retailers were frustrated by the alarm among consumers.
"It's just troubling. It creates unease and a lack of trust in technology," Carver said.
Congress has been critical of the government in the transition, saying it has no comprehensive plan.
"Not having a comprehensive plan for the DTV transition limits the government's ability to measure efforts against planned goals, set milestones, and assess risks," according to a November report by the Government Accountability Office, the investigative arm of Congress. "This raises uncertainty, including whether consumers, particularly undeserved and otherwise vulnerable populations, will have the information necessary to respond to the transition and to maintain their access to television programming.
The report went on to say that voluntary efforts in the absence of responsibility for facilitating the transition means that "accountability for a successful transition can not be assured."
AVOIDING PANIC
But there are government efforts in place.
The Federal Communications Commission has established a dedicated toll-free phone number for questions about the transition where callers can either speak to a specialist, have information mailed to them or hear a summary of information by phone.
It has also set up a Web site that explains the transition, provides answers to questions -- including information and applications for the converter box coupon program -- and a glossary of terms.
Non-governmental groups are stepping up as well. Best Buy will next month launch a toll-free phone number to address consumer questions about the transition.
"We understand there are a lot of people who are going to be confused about this and the more we can educate people about their options, the more we can avoid panic at this time next year," Best Buy's Lucas said. "We're also going to do more intensive training to make sure everyone in our home theater department is well-versed on this topic."
The National Association of Broadcasters has enlisted broadcasters across the country to participate in a digital TV speaker's bureau. The speakers will talk to Rotary Clubs, senior centers, advertising groups and other community organizations the broadcasting group estimates will help it reach one million consumers.
The public education campaign will also include on-air, online and grassroots initiatives, as well as media and advertising components. The road show element of the campaign recently launched, and is to travel to 600 locations such as shopping malls, Wal-Mart stores and sporting events.
Also included are TV ads, 30 minute educational programs about digital TV, online banner ads and news tickers during programming.
The various groups educating the public suspect there will still be a few who won't know about the transition until it occurs, but hope to get the word out now and avoid greater hysteria down the road.
So what will become of the soon-to-be obsolete rabbit ears?
"It will become one of those items in the Smithsonian," Carver said. "One day kids will be looking at rabbit ears and going, 'What is that?' and we'll say, 'That's what we used to watch TV with back in 2008, honey.'"
The upcoming digital transition sounds simple enough, but despite a major public education campaign, consumers are reacting with a Y2K-sense of urgency and doom.
Don't panic. Your beloved TV will be fine.
But it if it's not digital and you don't subscribe to cable or satellite, you'll need a cigar-sized converter box if you expect to pick up a signal after the Feb. 17, 2009 transition from over-the-air broadcast to digital signal. A government coupon program will cover most of the cost.
But for a transition that is a year away and promising to improve TV viewing, the issue has created much confusion, frustration and even panic for TV viewers.
"The industry is scaring the heck out of the public to make them think their TVs are going to be obsolete and go to black, and they are panicking," said Tommy Gomez, owner of Fort Smith-based Monty's TV and Electronics. "I don't mind selling a few more TVs, but someone needs to tell them the truth."
Even with a $7.5 million effort from the government to educate the public, and another $697 million -- yes, $697 million -- awareness campaign by The National Association of Broadcasters, people are alarmed rather than informed. And they are directing their concern to anyone they can find, from their children to their local television station.
CONSTANT QUESTIONS
"I get calls all the time from viewers asking about all aspects of the switchover," said Van Comer, president and general manager of local CBS affiliate KFSM. "I've personally taken well over 100, but I'm sure it will increase."
According to ratings veteran A.C. Nielsen Co., 43,000 people in the Northwest Arkansas and Fort Smith markets receive broadcasts through an analog signal, which accounts for about a third of the state tally of analog viewers.
The Consumer Electronics Association recently reported that more than half of U.S. households own a digital television. The Arlington, Va.-based trade group projected digital TV sales to increase another 13 percent in 2008.
But most households have multiple televisions, meaning many of those digital TV owners aren't entirely off the hook when the transition takes effect next year.
According to Nielsen data, 66 percent of households have three or more televisions. That means that while that living room and bedroom TV hooked up to cable won't require any action to get a signal after the switchover, that lone TV in the kitchen or basement that gets one or two channels will need a converter box.
And while it might seem like a hassle to get a converter box for a TV you only watch while cooking, that analog set that used to pick up a channel or two will get a dozen or so with the new digital signal and a converter box.
Retailers expect a surge in consumer questions once the converter boxes become available next month.
COUPON HELP
Earlier this month, the National Telecommunications and Information Administration began accepting requests for two $40 coupons per household to be used toward the purchase of the boxes, expected to cost between $50 and $70.
One box, manufactured by EchoStar, will retail at $39.99. The group has certified 25 converter boxes, according to Shermaze Ingram, a spokeswoman with the National Association of Broadcasters.
Already, consumers have taken action. The government has given out or processed requests for 3 million coupons, or about 10 percent of the coupons that will be available, according to Ingram.
But before rushing to order a converter box, first determine if your TV is digital or cable. If the TV has a turn-knob, antenna or rabbit ears, or is more than 5 years old, it is likely analog. If the TV in question was purchased within the last 3 years, chances are it's digital and it will say so right on the set.
At least one retailer is trying to calm the confusion consumers might have when going to buy a new TV. Best Buy pulled analog TVs from its shelves in October.
"When people come in, they know that everything they see will work after the transition," said Brian Lucas, a Best Buy spokesman. "It eliminated at least one element of confusion at our stores."
But not all retailers have abandoned analog TVs.
SELLING OLD TVS
The government has allowed retailers to continue selling analog TVs, but they must be labeled with a consumer warning stating that after the transition a converter box will be required to receive a signal.
Wal-Mart spokeswoman Melissa O'Brien said the Bentonville-based retailer stopped ordering analog TVs prior to March 2007, but still have less than 1 percent inventory in analog TVs left on the sales floor.
"Those few that are in stores are at a very reduced price," O'Brien said. "They will still work with cable, satellite or a converter box after February 2009, but demand for high-definition TV has been so strong that its sales overtook the analog market a while back to become the majority of what we sell."
Some sources said analog TVs remaining on the market is one of many factors complicating the issue to consumers.
POOR PLANNING?
The quick commercial spots appear to have alarmed rather than informed consumers, and the elderly -- the people most likely to be affected by the transition -- are least likely to understand it or want to invest money in free television programming.
"The consumer does lose in this, and unfortunately the education could have happened a lot sooner. This rush to educate people at the last minute is kind of unacceptable," said Lisa Carver, a retail consultant with Bentonville-based Newmarketbuilders.
Carver, who recently returned from the annual Consumer Electronics Show in Las Vegas, said she sensed at the trade show that manufacturers and retailers were frustrated by the alarm among consumers.
"It's just troubling. It creates unease and a lack of trust in technology," Carver said.
Congress has been critical of the government in the transition, saying it has no comprehensive plan.
"Not having a comprehensive plan for the DTV transition limits the government's ability to measure efforts against planned goals, set milestones, and assess risks," according to a November report by the Government Accountability Office, the investigative arm of Congress. "This raises uncertainty, including whether consumers, particularly undeserved and otherwise vulnerable populations, will have the information necessary to respond to the transition and to maintain their access to television programming.
The report went on to say that voluntary efforts in the absence of responsibility for facilitating the transition means that "accountability for a successful transition can not be assured."
AVOIDING PANIC
But there are government efforts in place.
The Federal Communications Commission has established a dedicated toll-free phone number for questions about the transition where callers can either speak to a specialist, have information mailed to them or hear a summary of information by phone.
It has also set up a Web site that explains the transition, provides answers to questions -- including information and applications for the converter box coupon program -- and a glossary of terms.
Non-governmental groups are stepping up as well. Best Buy will next month launch a toll-free phone number to address consumer questions about the transition.
"We understand there are a lot of people who are going to be confused about this and the more we can educate people about their options, the more we can avoid panic at this time next year," Best Buy's Lucas said. "We're also going to do more intensive training to make sure everyone in our home theater department is well-versed on this topic."
The National Association of Broadcasters has enlisted broadcasters across the country to participate in a digital TV speaker's bureau. The speakers will talk to Rotary Clubs, senior centers, advertising groups and other community organizations the broadcasting group estimates will help it reach one million consumers.
The public education campaign will also include on-air, online and grassroots initiatives, as well as media and advertising components. The road show element of the campaign recently launched, and is to travel to 600 locations such as shopping malls, Wal-Mart stores and sporting events.
Also included are TV ads, 30 minute educational programs about digital TV, online banner ads and news tickers during programming.
The various groups educating the public suspect there will still be a few who won't know about the transition until it occurs, but hope to get the word out now and avoid greater hysteria down the road.
So what will become of the soon-to-be obsolete rabbit ears?
"It will become one of those items in the Smithsonian," Carver said. "One day kids will be looking at rabbit ears and going, 'What is that?' and we'll say, 'That's what we used to watch TV with back in 2008, honey.'"