Recent News

Does Friday’s DTV Transition Deadline Matter to CE Pros?
Missed opportunity or the June 12 boon is overblown -- you make the call.
image

With its StaticAcrossAmerica.com site, Zip Express provides DTV transition information while promoting its antenna packages.


06.10.2009 — Friday, June 12 is essentially the second analog to DTV transition deadline because President Obama signed a bill to delay the original Feb. 17 deadline.

Even with a four-month extension, it doesn’t appear that the custom electronics industry has come up with a formula for capitalizing on the built-in demand for TV upgrades and knowledge.

There may be good reason for that. After all, the 2.8 million homes that still remain unprepared for the switch probably aren't electronic enthusiasts. In other words, they’re big-box store customers.

However, demand is demand and maybe that attitude is narrow-minded.

Then again, maybe CE pros are smart not to waste promotional dollars targeting an ill-fitting audience.

One thing is for sure: the DTV transition is coming at a bad time. Mired in a recession, consumers aren’t as likely to justify upgrading their TVs as they are to take the cheaper option of buying a converter box. Ironically, the economy won’t benefit with the boon it might have if it were healthier.

OnForce, a nationwide network of 13,000 service professionals, sees evidence of this, according to CEO Peter Cannone. He says OnForce is doing more service on existing TVs and obviously converter box installations, but consumers are finding it hard to justify TV upgrades.

“A year ago, we would have expected a bigger spike, but the mindset of the consumer has totally changed; it’s survival mode,” Cannone says. However, he expects pent-up demand for TV upgrades to stimulate the market in the coming months.

Promotional Ideas


So what, if anything, can CE pros do to capitalize on the transition and beyond?

One possibility is for CE pros to leverage the increased awareness and buzz surrounding HDTV, wrote Mike Hench, president of The Edge Distributors Group, in a CE Pro column.

If nothing else, the DTV transition offers CE pros an opportunity to reach out to past clients, according to CE Pro columnist Fred Harding of Capitol Sales. He suggests asking them if they need a set-top box for any extra TVs, opening the door to other product need conversations.

There are countless promotional opportunities for CE pros, according to Jeannette Howe, executive director of buying group Specialty Electronics Nationwide. She lists several, including participating in radio shows, hosting a “converter box demo day” and leveraging a “digital countdown” in local advertising.

As the deadline looms, are CE pros missing an opportunity or is June 12 just another day?

Following are tactics that some electronics outlets are using to leverage the DTV transition.

RadioShack: Education and Advice
It issued a press release indicating that it’s reminding consumers to make sure they rescan their digital-to-analog converter boxes after June 12, since some digital stations will move down the dial.

It’s also offering a DTV Transition Learning Course, which is available for free online.

OnForce: Whatever it Takes
Although Cannone acknowledges that a recession isn’t an ideal time for the transition, it does serve to fill his company’s and his network’s installation pipeline.

There is an opportunity for CE pros, he says, to become part of the OnForce network. This means they can either expand their footprints by using OnForce’s network of installers to do converter box and satellite system installations or their own technicians can keep busy during slow times doing those installations.

“Any type of work that can be done they need to say ‘yes’ to,” Cannone says. “That’s where OnForce can help them.”

Although OnForce isn’t doing any DTV transition promotions per se, Cannone says its service providers' ability to buy products wholesale allows them to be “hyper competitive” with big box stores.

Best Buy: FAQs
A section of its Web site is dedicated to answering questions about the transition. At the top, it lists three major solutions: “buy a converter box,” “subscribe to a paid TV service” or “buy a TV with a built-in digital tuner.” Click on each and it explains how Best Buy can help you go that route.

Zip Express: Interactive Site
The nationwide electronics installer has a Web site, StaticAcrossAmerica.com, dedicated to explaining, reporting on and blogging about the transition. Of course, it also promotes some Zip Express digital antenna package deals.

Amazon.com: Hype
June 8–12 is “High Def Week” on Amazon.com. What a coincidence!

The online retailer actually doesn’t link a lot of its promotion to the DTV transition. It seems to be more about Father’s Day, which is nine days later.

What are you doing? If you are doing nothing, why? Leave a comment below.

Subscribe to the CE Pro Newsletter

Get the latest news, products and more delivered straight to your inbox.

Tom LeBlanc, Senior Writer/Technology Editor, CE Pro
Tom has been covering consumer electronics for six years. Before that, he wrote for the sports department of the Boston Herald. Migrating to magazines, he was a staff editor for a golf publication and an outdoor sports publication. Now, as senior writer/technology editor of CE Pro magazine since 2003, he dabbles in all departments and offers expertise in marketing.
This entry has been viewed 1432 times.

tags
Subscribe to the CE Pro Newsletter
Subscribe to Email Alerts
Subscribe to the newsletter today! 

tagsThis Article Tagged

tagsNews Feeds

tagsSocial Bookmark
Submit to: , Digg, Delicious, Slashdot, Reddit, MyYahoo!, Google, Technorati, Learn about social bookmarking

Comments

Posted by Bryan  on  06/10  at  05:30 PM

The transition is a very minor issue for this industry.  The only issues I run into are clients with non stardard cable setups and those that do large quantities of hard copy recording. 

The issue is the cable companys have no requirement nor fixed deadline to stop their analog cable service as the transition only applies to broadcast analog…however, the challenge with this is most if not all cable providers will go exclusively digital (for the benefits of enhanced bandwidth).  The lack of information on their plans are what are causing the majority of rabid confusion in my area.

Posted by Ranger Home  on  06/11  at  06:43 AM

If a consumer is not ready they are simply stupid, lazy, clueless and/or a caveman. The government has done enough and spent enough to make everyone aware of this transition. I say STOP holding the hands of those that cant take the easy steps needed. Enough is enough.

Posted by Julie Jacobson  on  06/11  at  04:40 PM

I suspect there will be some interesting happenings in places like Minnesota, where a lot of people have cabins (ahem) and didn’t think about it ...

Page 1 of 1 comment pages
Post a comment

Name:

Email:

Choose smileys | View comment guidelines

Remember my personal information

Notify me of follow-up comments?

Please answer the question below:

Type the 2nd letter of the word "television":


Rate this article
You must be logged in to rate articles. Login or register.
  • Currently 0/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5
Average score: 0 / Total votes: 0