Lack of Standards, Consumer Wariness Could Delay Rollout of European HDTV
Europe, which failed in an attempt 15 years ago to launch high-definition TV (HDTV), is taking another look at the technology. At a Jan. 21 workshop in Brussels, the European Commission (EC) will try to create an “interoperability roadmap” for HDTV in order to have a better idea of how the market might emerge. But the fledgling industry -- there’s only one full-time HDTV service in Europe now -- faces several problems, including the lack of technical standards and HDTV content, and the need to convince skeptical consumers that HDTV is worth the price.
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
The attempt to introduce HDTV in Europe in the late 1980s/early 1990s failed “miserably” because the technology was too expensive and because govt. bodies and regulators tried to force standards on the industry, said David Mercer, Strategy Analytics vp-digital consumer practice. In 1989, the EC handed out financing that amounted to about half a billion euros for HDTV research, all of which vanished into R&D departments at Philips and Thomson, said a spokesman for EURO1080, the only full-time European HDTV service. In the end, both said, HDTV didn’t happen, and that left consumers and industry skeptical of the technology.
But 18 months ago, HDTV began to revive in Europe as the continent watched as the technology took off in the U.S. and Japan, Mercer said. It’s being driven by worries that Europe could be left behind and by the adoption by European markets of flat panel TV displays such as plasma screens, many of which are capable of displaying HDTV pictures, he said. Technology companies are anxious to sell new products and services, he said. Sony has been pushing its HDTV-capable devices and SES Astra, a major satellite company, is keen to sell more capacity, he said.
HDTV rollout could be hampered by several factors, both men said. The absence of technical standards is one potential roadblock, Mercer said. The EC appears to be taking a “standoffish” approach to HDTV standards in an effort to avoid the mistakes of 15 years ago, he said. The issue of standards is “always a sore topic,” he said, because everyone has his own ax to grind. However, he said, while the lack of harmonized European standards might cause some conflicts, it’s not clear yet if that will pose any problems because the HDTV markets of the various European Union countries are discrete.
Euro1080 wants industry standards, its spokesman said. The service, which began Jan. 1, 2004, broadcasts in 1080i at 50 Hz. Meanwhile, there’s the question of whether all HDTV providers will use MPEG 2 or turn to MPEG 4, he said. All of these technical issues confuse consumers, who will be less enthusiastic about spending money on HD sets that could be quickly outdated.
How to convince consumers of the “beauty of high definition” is another problem, the Euro1080 spokesman said. While the price of HDTV equipment has fallen steadily -- a TV is now $2,500 or less -- there’s little HD content, he said. It’s also been difficult to show potential buyers how much better HDTV is than what they're used to. Euro1080 has teamed up with partners in the Belgian market and now sends HDTV signals to more than 1,200 shops around the country so consumers can see the difference, he said.
Despite its problems, HDTV is growing steadily in Europe, the Euro1080 spokesman said. It’s not a “waterfall” yet, he said, but interest in the technology could increase as other players launch services. German pay-TV company Premiere occasionally provides HDTV programs now, and says it will offer more in 2005. Moreover, the spokesman said, in 2006, the world soccer championship game in Germany will be broadcast in HDTV, potentially giving the industry a tremendous boost.
The U.K.’s BSkyB plans to introduce a premium package of HD services in a digital satellite platform in the U.K. and Ireland in 2006, a company spokesman said. Other broadcasters will be able to use BSkyB’s platform, he said.
The growth of HDTV is likely to hurt both public service broadcasters, such as the BBC, and free commercial stations, who will struggle to compete in an HD market supported by pay-TV channels, Mercer said. There will be a clear distinction in the market between those who pay more for higher quality programming such as BSkyB and those who don’t, he said.
BSkyB is a member of the Digital Interoperability Forum, which along with the European Bcstg. Union will present a proposed roadmap for HDTV at the EC workshop, the BSkyB spokesman said.
Euro1080 is a member of the HDTV Forum Europe, which will meet in Feb. to try to craft a standard, the spokesman said. If forum members agree on a standard, he said, all TVs that meet it will have “HD compatible” stickers on them. If the EC won’t set standards, he said, ultimately the market will regulate itself.
The company is also talking to consumer electronics manufacturers. The service uses setup boxes with access guards to allow users to watch HDTV programs, the spokesman said. So far, 60,000 cards have been distributed throughout Europe, but by March 2005 that number will jump to 100,000, he said, meaning 100,000 setup boxes will have to be ready.
The EC, which is on holiday until the first week in Jan., hasn’t yet posted the agenda for its workshop.