Awareness of U.S. Digital Switchover is Up, So is Consumer Confusion

LOS ANGELES, March 24:
Although the transition from analog to digital broadcasting in the U.S. will
take place in less that a year, only six in ten Americans, or 80 million, are
now aware of the scheduled change.

By February 17, 2009,
American households will have to either buy new HD TV sets or add converters to
their existing ones in order to receive digital broadcast signals. According to
a Frank N. Magid Associates online tracking study, many consumers are still
confused about what they need to do.

Magid Media Futures
tracked more than 1,000 consumers’ educated awareness of the digital-broadcast
transition and their adoption of high-definition television. With less than 11
months to go until the actual transition date, many organizations involved in
broadcasting, cable, satellite and consumer electronics are concerned about
consumer preparedness.

Initial findings suggest
that the combined efforts of the U.S. government and the many industries
committed to educating consumers about digital television are having a positive
impact on both awareness of the transition and specific details about the
impact of the transition on TV viewers. After languishing in the 30- to
40-percent range for several years now, consumer awareness of local
broadcasters' digital signals jumped from 34 percent in September 2007 to 59
percent in February 2008.

“With a true countdown
upon us now, this growth in awareness proves the power of the coordinated
education effort among all parties involved,” said Maryann Baldwin, the VP of
Magid Media Futures. There is
still much work to be done, but the initial progress is encouraging."

In a similar study
conducted in 2002, 42 percent of consumers said they were aware of digital
television. That awareness dropped to a low of 28 percent in 2004; however, in
2008 it has more than doubled. An encouraging finding here is that those
residing in “over-the-air-only” homes—those most significantly impacted
by the analog-broadcast shutoff—show a higher level of awareness at 63
percent, up from 35 percent last fall.

Also evident in the Magid
study is consumers’ ability to identify statements that accurately characterize
the impact of the digital transition. “Our findings last fall were definitely
cause for concern, with only one-third of consumers aware that some people
would not be able to receive local television transmissions, and only 12
percent aware that a government program would be available to assist those who
need to acquire a digital receiver,” reports Baldwin.

Highlights from
results-tracking findings from September 2007 to February 2008 include:
awareness of the fact that some consumers, with current TV reception
arrangements, will not be able to receive TV signals after the transition
increased from 35 percent to 52 percent.

And secondly, satellite
and cable customers aware they will be able to receive local TV signals through
their provider’s service after the transition, regardless of their TV tuner
type, grew from 27 percent to 45 percent.

Another concern emerged
from the study. The group of consumers who believe that the digital transition
means that all television programming will be available in high definition also
grew during this period, from 23 percent to 29 percent. While digital
transmission will make the delivery of high-definition content possible over
the air, it does not mean that all channels and networks will actually offer
all of their programming in high definition.

“If this trend in consumer
expectations continues, cable and satellite television providers will want to
prepare for an onslaught of customer questions in the coming months,” said Jill
Rosengard Hill, the VP and managing director at Frank N. Magid Associates. “If
a large proportion of HD customers expect that their entire channel lineup will
be presented in high definition on February 17, there will be customer
frustration and the switchboards will light up.” Currently, 32 percent of those
who subscribe to cable or satellite HD service believe this to be true.

—By Anna Carugati