Last year, almost 30 million North American consumers ponied up the $1,000 or more for a new high-definition television set. But that extra $10 a month for the HD subscription service? Not so fast.
While about two in five U.S. television owners have a high-definition television, only 44% of the HDTV owners subscribe to a high-definition service package from their cable or satellite operator, U.K.-based ABI Research said in a report last week.
With the proliferation of content alternatives such as HD disc players and broadband downloading, many customers pass up the monthly HD subscription because they don’t want to pay the extra fee or are unaware that such a subscription is required for HD viewing in the first place.
“Some consumers are more interested in flat-screen TVs for the form factor, rather than the ability to receive HD content,” said Cesar Bachelet, senior analyst, multichannel video, at ABI. “Some are satisfied with the alternatives to get HD content, such as broadband video and DVDs.”
HDTV sales in the U.S. continue to ramp up as prices fall and more customers prepare for the switch to digital broadcasting in February.
North American consumers bought 10.3 million HDTVs in the fourth quarter, up 52% from a year earlier, according to NPD Group unit DisplaySearch. By 2012, more than 85% of U.S. households will have both HDTVs and access to HD signals either over the air or through a subscription service, compared to about 30% for Western Europe, according to U.K.-based consultant Understanding & Solutions.
Still, many HDTV owners are likely to continue forgoing the monthly HD bill in favor of other content sources, Mr. Bachelet said.
“Although HD package use will grow due to greater availability of content and greater awareness of requirements to obtain HD content, it will always lag behind HDTV ownership,” he said.
Del.icio.us 
Digg 
Fark 
StumbleUpon 
Comments (7)
The folks at ABI forgot one other possibility: some HDTV owners are skipping the monthly bill by simply hooking our televisions up to an antenna and receiving high definition programming for free.
Posted by Texas Tom | April 3, 2008 6:38 PM
I to have an HDTV (4 of them) and I subscribe to the monthly service from Directv. At the moment in my market Jacksonville and especially at night the transmission signal from each of my local TV stations are not that strong.I do receive the same stations via Directv and I must say it doesn't do the actors to put on makeup because the clear crisp picture see's right into their pores.The picture is Fantastic and hopefully more stations will be onboard because most of the HD channels they offer are sports related for which I don't care for.
I was the first person in this city to get the satellite dish system when it first came out and have enjoyed it ever since.Now with it hooked up to the HD system the quality is OUTSTANDING!
I see alot of people looking and trying to figure out which brand to buy but most go by the low price instead of seeing what connections the TV has or how many HDMI inputs there may be.They see the models on display and think "wow that one looks better than that one, but when you look at the connections they are not the right ones to use and so they (store) are NOT displaying the best possible picture.
All one has to do is purchase there HD package $10 and that gets them there local channels and they can take out the lower tier pkg and they come out cheaper than cable (which by the way has increase there prices 100% fold vs satellite systems prices.
When looking to purchase your HDTV look at the number of HDMI inputs because eventually all your other equipment; DVD, VCR, stereo system will eventually go that route.Make sure it's 1080 for the finest picture ever.
Posted by FL Ron | April 3, 2008 9:07 PM
Hey, FL Ron,,3 times you used THERE when you should have used THEIR,,maybe you WERE the first person in Jacksonville-really?-to get a satellite dish system, but perhaps you could have been the LAST person there to read a dictionary! And all HDTV's have 1080 capability, you want the 1080p instead of just 1080i,,just to let u know, or as youd write,,no!
Posted by FL Rons teacher | April 4, 2008 3:02 AM
It says a lot that half of us who have the money to buy a set aren't smart enough consumers to get the benefit of it. Much like the cars we drive, it's more about confirming our success than fulfilling a need.
Few HDTV owners know they can hook an antenna to their set. Of those who do, the idea of having rabbit ears in their "Media Room" is unconscionable.
Posted by Stallings | April 4, 2008 7:34 AM
Hey FL Rons teacher, not all HDTV's are 1080. Some are 720, so you're wrong.
Also, Cesar Bachelet, DVD's are 480. If you consider that an HD format, I'm curious how you became the senior analyst at multichannel video, whatever that means.
Posted by Stallings | April 4, 2008 7:39 AM
I agree with Texas Tom. A lot of people are probably just using an antenna. Where I live, there are a dozen broadcast TV channels.
Posted by Randolph Miller | April 6, 2008 3:04 PM
I think folks are just unaware of the ability to get HBO or History, etc. in HD and think they get it all just by hooking up the antenna. It's some ignorance and some cheapness.
Posted by Bob | April 8, 2008 10:05 AM