• by Paul Gough , April 30, 2003

High definition TV - billed as a quantum leap in technology as significant as the introduction of the color TV in the 1960s - is starting to generate serious smoke among consumers, a new study finds.

Eighty-one percent of people who responded to a survey by Boston-based Dove Consulting Inc. said they were familiar with HDTV. Forty-seven percent said they were considering buying an HDTV-enabled set within three years. Thirteen percent already have a set, including 6 percent who bought one within the last six months.

Dove Consulting's Bob Davis said the study finds that there's a market for HDTV even with the weak economy and the war just past. It's being aided by HD-style experiences when watching DVDs at home, followed by heavy pitches at consumer electronics stores, 0 % financing and falling prices. HD is also drawing interest from the high-definition channels being offered by HBO, Showtime, Discovery and at the end of the month, ESPN. Broadcast networks, like ABC, are also offering high-definition programming and broadcasters are being forced to convert to all high-definition programming in a few years.

Davis said that HD is becoming a way for cable operators to compete against their competitors and differentiate themselves in a crowded marketplace. "I know that some cable operators like Comcast, Time Warner and Insight are putting a lot of effort into video on demand because they think it's a great weapon against satellite and TiVo and it is. But I think there are other operators that believe that in terms of driving consumer revenues ... HD in a shorter time frame will pay more dividends," he said.

What drives the typical high-definition television user? The Dove Consulting study found that it was movies. People who are likely to buy a high-definition television watch more DVDs and people who have high-definition sets watch more DVDs. Kristin Rowell of Dove Consulting said that movies were by far the programming with the highest preference in HD although sports also came out ahead of the pack.

Other findings:

The availability of high-definition television is a factor in switching between cable and satellite. Fifteen percent of those surveyed said they would consider switching providers if one had HD programming and the other didn't. Among HDTV owners, 32 percent said they would consider switching providers. One in four consumers would be more interested in buying high-definition television if their provider made a set-top box available.

Three-quarters of HD owners are willing to pay more for a package of high-definition television; 20 percent of those would pay more than $10 a month. More than 60 percent would pay between $3 and $5 a month for the programming.

For more information on the study, go to www.ConsultDove.com