Interesting article.
HD battle baffles TV watchers
Carl Bialik
The Wall Street Journal
Jul. 13, 2007 08:23 AM
As Americans upgrade to high-definition television, they're being barraged by celebrity pitches for competing TV services - and dueling statistics.
Most viewers will never compare cable with satellite in their own homes. But they're asked to make the comparison in their heads, with the help of some loaded claims.
DirecTV has been the big player in this numbers game. In a current ad, Pamela Anderson, in "Baywatch"-era lifeguard garb, chastens viewers as a swimmer calls for help: "I'm putting my life on the line and you're watching me on cable instead of DirecTV?" Ms. Anderson explains: "DirecTV's picture quality beats cable, four-to-one."
How one picture quality beat another, or exactly what the four-to-one ratio represents, Ms. Anderson doesn't say; she launches into her trademark beach run.
Later, the ad clarifies that DirecTV was preferred four-to-one among home-theater installers. A company news release explains that 500 installers were surveyed by phone nationwide. Satellite was compared with cable generically, not with a specific provider. Picture quality was a convenient measure for the ad: There, DirecTV had the widest margin over cable. The margin for best overall TV experience was two to one.
Clarifying the clarity survey
Much remains unclear about the survey, including how the installers were selected. Analysts say most installers get a commission if they set up a satellite system, but not so for cable. Also, the entire survey wasn't presented in the release, so we don't know if the respondents preferred cable in some measures. Such answers wouldn't make it into the news release, let alone into Ms. Anderson's script.
Jon Gieselman, DirecTV's senior vice president of advertising and PR, said he'd like to clarify things, but some of the company's ads are tied up in court with its cable rivals. The two sides in the TV tussle are swapping lawsuits as well as competing ads. "Because of the pending litigation, DirecTV is not at liberty to discuss these issues in detail, other than to say that we stand by our own advertising," Mr. Gieselman said. A DirecTV spokeswoman did say that the home-theater installers worked with more than one TV service, including some cable companies.
Comcast Cable, in turn, has advertised that satellite customers prefer its HD picture quality over their own providers'. That claim is based on a test of two TV sets, side by side, sponsored by Comcast and conducted with the help of three outside companies. Comcast's news release trumpeted that two-thirds of satellite customers preferred its service. But its margin of victory narrows when cable customers are included in the blind test.
Not all HD created equal
Nonetheless, there are problems with a side-by-side comparison of picture quality. Not all HD channels are created equal. Some, but not all, pay carriers to broadcast their pictures at maximum resolution. And picture quality depends on how well the TVs were set up.
DirecTV has sued Comcast in U.S. District Court, Chicago, over its ads based on the survey, calling them "literally false." Comcast has said it stands by the ads, but declined to provide a copy of the full survey or further clarification, citing the litigation.
The number of available HD channels is another arena of debate. DirecTV touts that a satellite upgrade will soon provide its customers with 150 channels - three times the number available with cable. But Sanford C. Bernstein analysts stated in a report last month that there is no time frame for the expansion. Also, the company counts twice two HD channels with identical programming that are scheduled three hours apart because of the time difference on the two coasts.
Judge pulls DirecTV ads
Comcast, meanwhile, has stated its goal of 800 HD "choices." These include "every lame HD stream that a consumer could conceivably order up (think interactive HD car commercials)," the Bernstein analysts wrote.
DirecTV lost one legal round because of another use of numbers. Actress/singer Jessica Simpson suggested to viewers that DirecTV HD has the best picture quality, then added, "It's broadcast in 1080i. I totally don't know what that means, but I want it."
Apparently DirecTV want viewers to channel their inner Jessica Simpson, because 1080i is an HD standard that all the providers follow. It's like boasting that your computer monitor is capable of a 1024x768 resolution (the norm).
A federal judge for the Southern District of New York ordered the ads pulled - after they had already been stopped, says DirecTV. The company appealed. Stating that your product is better than your competitor's is deemed harmless "puffery." But "courts have recognized that scientific claims are more persuasive," Georgetown advertising-law specialist Rebecca Tushnet said. Then, advertisers must be able to back the claim.
When it comes to HD, consumers could use some help. Bruce Leichtman, president of Leichtman Research Group, based in Durham, N.H., said only half of people with HD sets watch HD programs, with many not realizing they must subscribe to a special service.
Bernstein analyst Craig Moffett adds, "This is a market that is characterized by rampant confusion, and therefore it lends itself to hyperbole and inflated claims."