• by Joe Mandese  @mp_joemandese, June 5, 2009

The U.S. TV broadcasting industry's conversion to digital spectrum, which takes effect June 12th, has been a boon for the cable, satellite and consumer electronics industries, according to research released Thursday by Knowledge Networks. The data, which comes from KN's Home Technology Monitor, indicates that 26% of U.S. TV households have invested either in new digital TV services or equipment to prepare for the transition, providing a much-needed stimulus for the industry in what otherwise might have been a down period due to the waning economy.

The effect may well be analogous to the Y2K phenomenon, in which companies invested heavily to upgrade their computer systems in preparation for the Year 2000 when many older systems were believed to have a flaw that would have caused them to cease operating or to operate incorrectly at the turn of the new millennium. Similarly, U.S. consumers have been upgrading their TV technology and services in preparation for the U.S. digital conversion, which was originally scheduled to occur in February, but which was delayed by the Obama Administration to June 12th to give consumers and the industry more time to prepare.

Knowledge Networks executives said they began explicitly tracking the digital transition phenomenon in 2006, and that new data from February through April of this year reveals that 18% of U.S. TV households have bought a new digital converter box to enable analog TV sets to receive digital TV signals. The U.S. government provided coupons that helped defray some of the cost of acquiring such converter boxes.

Knowledge networks found that 8% of U.S. TV households also bought a digital TV set specifically to prepare for the transition, while 5% of households began a new digital TV service subscription from either a cable or satellite TV provider.

The net result of all these preparations was that 26% of U.S. TV households invested in some form of upgrade to prepare for the digital transition.

Knowledge Networks executives did not venture how much American consumers spent on the upgrades, but they did say that the shifts are likely to have a profound effect on the way Americans watch television.

"The digital transition is bringing more channels - sometimes dozens more - into nearly one-quarter of U.S. TV households, vastly expanding the numbers of programs and advertisements they can be exposed to," stated David Tice, vice president-group account director at Knowledge Networks and director of The Home Technology Monitor, adding, "Our research has shown that having high-definition TV reception changes viewing behavior, prompting many people to check HD channels first when they sit down to watch TV. The result is that the digital transition as a whole seems destined to alter long-standing TV behaviors in many U.S. homes."

TV audience measurement giant Nielsen Co. has also been tracking the phenomenon and has developed plans to prepare for shifts in TV viewing, and some dislocation, that may occur as a result of the transition beginning next week.

On Thursday, Nielsen alerted its clients that it would begin digital TV transition testing on Saturday for ratings data beginning today, and noted that it might lead to "slight delays" in the release of local overnight ratings data. Nielsen also said it would begin communicating daily updates of its testing via a digital TV transition Web site beginning Saturday.

Nielsen previously announced a plan to delay the release of local TV ratings in all its metered markets for seven days after June 12 in order to validate their accuracy following the transition. That move is being made at the request of clients, Nielsen said.