Digital TV Transition Not so Great for Cable Providers

As the digital television transition approaches (February 17th of this year), some expected predictions just aren’t happening. It was thought that many individuals would take this chance to upgrade to a cable provider, or buy an HD television. However, it turns out that people who don’t already subscribe to cable aren’t feeling the need to upgrade now. With the economy taking a downturn, many people are opting to tighten their purse strings, rather than spend more on television. This means that many are choosing to simply purchase a converter box, rather than spend money on a cable provider or an expensive TV set.

Perhaps it is the procrastinator nature of the American population, but instead of purchasing a high definition TV before the slump, many are now facing the decision on what to do come February. Between August and November of 2008, converter box sales have sky rocketed almost 50 percent. This is according to The Nielsen Company, a company that tracks consumer TV spending and behavior.

Senior Analyst of SNL Kagan in Charlottesville, VA, Justin Nielson, said “People are cutting back on their consumer discretionary spending.” He has tracked customers throughout the upcoming transition and notes “Most of the remaining over-the-air TV viewers are now going just to converter boxes.”

Though there are still some cable and satellite companies that dare to hope. The Chief Operating Officer of Comcast, Steve Burke, said “We see a real opportunity to target and attract new customers.” However, no spokesman commented on how their current sales were doing.

A spokeswoman for DISH Network, Francie Bauer, stated “We do realize wallets nowadays won’t let people get into satellite” or many other pay services for TV, such as cable. “But we have hope down the road.”