Hearing of House Subcommittee on Telecommunications and the Internet: Preparing Consumers for the End of the Digital Television Transition
HEARING OF HOUSE SUBCOMMITTEE ON TELECOMMUNICATIONS AND THE INTERNET: PREPARING CONSUMERS FOR THE END OF THE DIGITAL TELEVISION TRANSITION
March 10, 2005
BREAK IN TRANSCRIPT
Mr. Inslee. Sorry I was late to the meeting, but listening to what you described as a dilemma in what to say to consumers in this amorphous period, does that--does this whole situation argue for an earlier hard date as opposed to a later one for all concerned? That is a question to the whole panel, I guess.
Ms. DeSalles. Well, we would be concerned with an earlier date, because of the need for an effective transition period for public education. We believe that you need a minimum of a year in order to get the materials ready, the PSA announcements. I mentioned earlier that we felt there should be a comprehensive outreach effort toward educating consumers, and it would take a year to get the information prepared, ready, and out, distributed via PSAs, articles, for example, AARP magazine information or website information. It takes time to educate.
If I may relate a personal experience about the need for consumer education. As it happens just a month or so ago, I purchased a large screen HDTV, and before I went out to buy that television in looking at some of the ads, I thought, ``Well, good grief these televisions are awfully expensive,'' whereas here is a big screen set--I was looking for 34 inches, and I thought, ``Here is one 32 inches that is only several hundred dollars,'' you know, without really considering that this was something that is going to be obsolete. So I have had my old TV for 20 years, so I am not one of those that runs out and purchases gadgets that often. And a little investigation told me that what I really wanted was the quality of HDTV. So I went to the store and thought, because I am a cable subscriber, that I was buying something that I could hook into the cable box and have high definition. Wrong. I still needed a box to make that conversion. I am not an expert on technology, but neither do I consider myself an uneducated person. I didn't know and the salesman never explained to me what was required with that purchase.
So I am saying that a lot of detailed information in an easily readable form needs to be given to consumers. I have not seen the tip sheet, but just from this end of the table looking at it, I think it would be difficult for many, particularly older people, to comprehend.
Mr. Roberts. If I may, and I agree with you. We referred to the tip sheet. This is really the tip of the iceberg. I mean, if there was a hard date set, we would unleash some of the greatest power in this country in terms of educating the consumer, and that is the retailers. We would unleash a marketing educational program, but right now, we have nothing to market--to educate with, other than, something that may happen. And many retailers have tried that. But, you know, we are marketers. We, ourselves, spend, you know, hundreds of millions of dollars on marketing, and I guarantee you we find that our responsibility to educate the consumer and target various Latino community and seniors in particular, because those are markets that we cater to. But, I think you--all of our competitors, all of our retailers, you find an unbelievable power unleashed in terms of the educational program. That is what a hard date also would unleash.
Mr. Inslee. Sort of following up on Mr. Wynn's questions, what percentage of people coming in to buy an analog TV today know that there is some potential that in the fairly recent future--or near future there could be a cessation of that broadcast? What percentage? Any idea? Is there any objective evidence on that?
Mr. Roberts. I don't, and I would be just guessing. I think it is a confusing area, so I would say that the percentage of people who really understand what is going on is small. We make an attempt to explain that to folks. But again, we are at a price point. It is company specific. If Best Buy or Circuit City were up here, they may have some other response. We are a price point that folks are looking for something within the $70 to $250 price range. And today, they can't buy a digital alternative. They are only left with buying an analog alternative.
Mr. Inslee. So shouldn't we be a little concerned that maybe 70 or 80 percent of the people buying this product don't know that in several years this could be useless as far as broadcast situation, or at least without an upgrade?
Mr. Roberts. Well, it is not useless. Again, you know, you can hook it up to cable or satellite----
Mr. Inslee. No, no, no. For broadcast-only purposes.
Mr. Roberts. For broadcast----
Mr. Inslee. 30 percent of the TVs in my State are broadcast-only. That is it. That is all they have got. So I mean, it is not an insignificant number of people.
Mr. Mirabal. I do have information about studies about awareness. And A.C. Neilson's most recent efforts on this show that less than 5 percent of the public is aware of the transition.
Mr. Inslee. That there is any potential transition, you mean?
Mr. Mirabal. That is correct. They are unaware, completely, obviously, unaware when they go in to buy a TV.
Mr. Inslee. Those are mostly Congressional staffers then.
Mr. Mirabal. Mostly. And I should disclose that I do not have an HDTV.
Mr. Inslee. Okay. Got you. Well, let me just suggest one thing we should consider, though, and that is mandating all of the celebrity criminal trials that are broadcast should be put on analog and then have an early cessation date.
BREAK IN TRANSCRIPT
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_house_hearings&docid=99912.wais