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Mermigas: Not Ready for Digital Transition

By Todd Mundt • September 9, 2008

Diane Mermigas addresses the digital switch in her latest post, noting that while consumers are confused about the coming change, and many aren’t ready for it… the industry is in same quandary.

Broadcasters face an expected 9% loss in revenue next year, and after February 17th, 2009, every confused consumer will represent lost viewing, lower ratings, and potentially lower ad revenue. Broadcasters could fill some of this gap with revenue from new interactive services that take advantage of the opportunities afforded by digital transmission, but Mermigas writes that this isn’t happening. Many stations and group owners have no clear strategy for how to use the spectrum or how to make money from it.

What strategies are public TV stations pursuing? Public TV’s older demographic is most likely to be confused by the switch, and more likely to be cut off from viewing when analog goes dark. Beyond that difficult problem is how public broadcasters plan to achieve the revenues necessary to support 2-5 channels. And Mermigas’ post implies a bigger question: what new services can you develop that will utilize the capabilities of digital broadcasting to further your mission, while building a stronger financial future for public TV?

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    Old fashioned off the air TV works with a simple 1 – 2 – 3 process. 1, turn it on with big power knob. 2, choose channel with big knob, 3, adjust volume with other big knob. The best part, if the TV was set up right on last viewing it’s become a one step process by just turning it on.

    If the consumer finds the change to digital is too complicated I don’t think cable / satellite TV will be any less confusing. I also don’t believe this same crowd of confused consumers will leave TV because they are not likely to investigate internet streams or hook their iPod up to the TV with the $50 Apple cable from shows downloaded via iTunes. That’s what folks like you and me do while taking a break from reading feeds, listening to satellite radio channels, popping on the local NPR station, sending a text message to our pals, Tweeting a clever link on Twitter and downloading the latest DJ Deedle cast. Those we are concerned leaving due to confusion won’t leave because they will have a simple solution from their local TV shop and by local TV shop I mean awful corporate stores like Best Buy. The converter box or a new TV will be set up by their favorite grandchild this Christmas or on Easter break, unless of course grandma gets a laptop sets up a Twitter account and follows broadcasters just to berate them for messing up their TV by going digital.

    Either way, I have a lot of faith in the TV consumers to get it figured out because American’s love their TV.
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    John, thanks for your comments. I don't think anyone believes the loss in viewing will be permanent, but in Wilmington yesterday there were many people who didn't know about the change (despite a massive campaign), hadn't been able to hook up their TV's properly, or couldn't get the antennas adjusted well enough to receive a usable signal, or who had a good setup and then accidentally did something that caused a malfunction. (NPR interviewed the elderly man this morning who, after someone else set it up for him, pressed the wrong button on his remote and couldn't see TV anymore.)

    Diane Mermigas has an important point: regardless of the positive end for all eventually, Wilmington was the absolute best case switchover, and broadcasters need to do much more to prepare viewers for the change.
 

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