This year the battle for who is going to provide consumers with their services for their new HDTV is happening in retail electronic stores.
With the more high-end customer less likely to change providers once services are bought, the two industries are going strong in their fight over consumer dollars.
The battle involves two major issues: One, is that DirecTV (DTV) and EchoStar's 
DISH (DISH) networks aren't able to compete with the bundled packages that the cable companies like Comcast (CMCSA) offer with combined telephone, Internet and television service.
On the other hand, the satellite companies have had a strong relationship with retailers like Best Buy (BBY) and Circuit City (CC), which could give them an edge as consumers buy their HDTVs this holiday season.
The major concern all parties have is that consumers will be overly confused as they buy their TV sets but won't be able to get the great pictures they see in the stores because they will have to upgrade their services. The providers are worried that there will be huge returns of the TVs if things aren't explained in a way that most consumers will understand. Sony (SNE) vice president of TV marketing Phil Abram says that this is a huge hurdle to overcome.
With Pacific Media Associates projecting that there could be over 3.2 million HDTV sets sold in the United States in the fourth quarter of this year, there is a lot at stake.
The one thing that program providers can at least feel good about is that retailers have a lot at stake also as they have incentive to make sure consumers understand what they'll need to do if they buy the TV sets, so that there will be a lower return rate.
I dont think retailers are overly concerned by the confusion. If anything, the big providers talking about HDTV helps to drive sales. Not many people return their TVs, so its really of no consequence what the consumer chooses to hook up to it. The retailers win.
Posted by: The Judge | November 26, 2006 3:06 AM | Permalink to Comment