Digital TV Transition status of the conversion and opportunities for Marketers.

A new report released by Centris, a month before the country’s transition to Digital TV (DTV), provides estimates of the number of US households that will be affected by the upcoming digital conversion, their profile, their plans for handling the transition, and estimates of the impacted households in the top 25 US markets. The research also provides an overview of the issue, the key players in the conversion process and the programs that have been developed to address the technology conversion. Centris provides marketing intelligence on electronic communication services, including voice, video and data products.

Beginning on February 17, 2009, every major TV broadcast company will convert from analog to digital transmission. According to Centris, when this occurs the greatest adverse impact will be to Over the Air (OTA) homes that have opted to continue receiving OTA signals and are not adequately prepared for the transition.

Centris estimates that there are 33.8 million homes that will be affected by the DTV conversion. These consist of 14.6 million primary OTA households that use OTA as their primary source of TV reception, and an
additional 19.2 million households that have multiple signal connections including pay-TV.

Of the 14.6 million primary OTA households, Centris estimates approximately 6.1 million (42%) should be prepared to manage the transition assuming they have purchased a converter box and successfully install it. Centris estimates that 8.5 million primary OTA households (58%) of the total primary OTA households nationwide are located in physical areas where using existing antennas will result in trouble with signal reception (“antenna gap”) or other technology challenges. This estimate is only slightly below the company’s 9.2 million estimate released by Centris in early 2008 and reflects continued declines in OTA households. This means that a large number of TV viewers will require additional options other than the primary converter box program to continue receiving adequate signals.

According to Dr. Paul Rappoport at Temple University and a Centris consultant, “This government-mandated transition will bring about an improvement in the way many people receive TV transmissions. However, for a variety of technical and geographic reasons some homeowners may experience difficulties. The report offered by Centris provides a laser-focused look at how and where issues may arise, and translates that information into recommendations on how the industry can offer valuable solutions.”

Bill Beaumont, president of Centris notes, “Centris has been studying this issue for several years. We believe there is a continuing marketing opportunity for service providers, manufacturers and retailers that develop targeted, local marketing programs. We expect this opportunity will not end on February 17, 2009 but continue well into the year as consumers embrace new service providers and seek new TV reception solutions.”

Beaumont went on to explain: “In addition to pay-TV opportunities, Centris’ ongoing industry research indicates that certain segments of OTA households offer better opportunities than others for marketers. For
example, Centris research indicates that almost one-half (45%) of certain households segments that switch to cable also sign up for other voice, video, and data services. Finally, an opportunity also exists for companies that offer non-TV services. Retailers that offer both sales and installation of antenna and other needed equipment may also benefit from selective households wishing to retain OTA reception.”

For more information at http://www.centris.com