CEA AND NAB BEGIN DTV CONSUMER AWARENESS CAMPAIGN
LAS VEGAS -- CEA and NAB Wed. announced details at CES of long-awaited consumer education program intended to spur adoption of DTV. Pilot program will name 4 cities as Digital TV Zones. Campaign in first 3 -- Indianapolis, Portland, Ore., and Houston -- is to start in late Jan. Each city is in region where all local, network-affiliated stations have made transition to digital broadcasting and there is “strong retail commitment to digital television marketing and sales,” NAB Pres. Edward Fritts said. Campaign in 4th city, Washington, is expected to start later this year. Program (CD April 10 p3) will leverage community and retailer support in each city to provide residents opportunity to see and hear digital TV firsthand, he said. HDTV sets will be placed in high-traffic areas in malls, airports, museums, govt. buildings. “Watch parties” and local station tours will be conducted, Fritts said. As part of campaign, CEA opened new Web site to provide information to public.
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Cost of program will be split between NAB and CEA, said CEA Pres. Gary Shapiro. Although details of financial split weren’t disclosed, he said commitment was “in the 7-figure range for both entities.” No further details of program expansion beyond initial 4 cities was available. Shapiro said no decisions had been made, but Fritts said NAB “considered this a multiyear effort. If the campaign works, it will be replicated nationwide.” Further support for Digital TV Zones will be in form of advertising on local stations. Fritts said he expected “significant advertising” to support campaign and NAB had under development high- quality spot to promote DTV to be made available to community. Local stations “will contribute substantial advertising time,” he said: “These are local stations that have made the DTV transition and are carrying parallel investments. The ads will promote their new digital service.” Finally, manufacturers will work with local retailers to tie-in DTV promotions with overall campaign in each city.
Shapiro in speech described successful transition to DTV. CEA estimated 1.4 million digital TV sets and displays were sold to dealers in 2001, compared with its earlier forecast of 1.1 million units. “This represents $2.6 billion in sales for a product that didn’t exist 4 years ago,” he said. CEA predicted 2.25 million unit sales in 2002, worth $3.7 billion. Numbers are misleading, Shapiro said after session: 1.4 million sold units includes all “DTV-ready” along with DTV-capable sets. Actual number of ATSC capable products sold last year that met ATSC DTV specifications numbered about 297,000, he said.
Despite disappointing amount of programming available, “today, there are 229 stations in 80 markets that serve digital content to 73% of U.S. households,” Shapiro said: “By May 2002, NAB expects that at least one digital signal will be available in markets that serve more than 95% of TV households” when 600 more stations will have digital programming online. Average DTV set price will drop to $1,635 from $1,835 in 2001. “Prices are falling rapidly to within range of more American families,” he said.
Question of cable DTV must-carry will be resolved in time, Shapiro and Fritts said. Although CEA has pressed for regulatory action from FCC, market forces are more likely to provide solution. Fritts said: “We believe cable companies will come along -- they do not have a choice.” As new campaign creates consumer awareness and DTV demand, “we'll see the cable industry, because of competition, will fall in line,” he said.