Retailers Aid Shoppers With DTV Switch

In an effort to highlight the country's upcoming switch from analog broadcast signals to digital broadcast television, Michael Abt, president of Abt Electronics in Glenview, IL, set up a display of two old, 32-inch analog television sets with signage explaining how they wouldn't work when the changeover occurs. "It looked so bad, the merchandisers made me take it away," Abt says.Such is the dilemma facing electronics retailers as the country prepares to switch away from its old "rabbit-ear" technology to a more refined digital signal. Feb. 17 is the day the switch is to occur, but lawmakers are considering delaying the changeover until June 12.While the government, local and national broadcasters, and even retailers have begun extensive campaigns to educate consumers on the switch and how they might be affected, there's no denying that selling a new television will always be more profitable than a government-subsidized converter box that retails for less than $100. "What's a retailer want to sell? A new television set or a converter box that gives you protection?" says Mark Renshaw, director of digital at interactive and digital ad agency Arc Worldwide, Chicago. "A retailer doesn't want to cannibalize the opportunity of selling a $1,000 television set."Retailers, however, say it's in their best interest to offer both the converter box as well as new TV sets, in the interest of making sure the customer is happy. In that spirit, many electronics retailers launched extensive shopper education programs, tutoring salespeople on what the change is and how consumers might be affected by it, running public service announcements on their in-store TV networks, and even venturing out into the community to ensure people are as prepared as they can be.What is the Change?On Feb. 17, federal law mandates television broadcasters change their signals from an analog format to a digital format. According to the FCC, the new digital format will provide better picture and sound quality, multiple broadcast options per station (aka "multicasting"), and free up the previously used analog spectrum for public service and wireless services. Affected consumers -- those who receive television signals through the air -- have the option of buying a new television with a digital receiver inside or purchasing a converter -- costing between $40 and $70 -- that will work with their current antenna. The government has been issuing $40 coupons to help subsidize the purchase.For many consumers, the change will be a non-event. People who subscribe to cable or satellite services will be unaffected, and new TVs purchased after March 2007 were required by law to have digital receivers. For a segment of the population -- including low-income consumers and those in assisted-living facilities -- the switch could mean their primary television sets won't work. For others -- who may be receiving cable signals on their main TV, but not one in a bedroom -- a second or third set in their home won't work. "The majority of people will be fine," says Heather Polinski, an assistant professor at Central Michigan University's School of Broadcast and Cinema Arts. "But we won't know until after Feb. 17 what people knew and didn't know."What Retailers Are DoingBecause of these nuances, retailers have been executing consumer education programs for several months.At Walmart, Bentonville, AR, the retailer has posted signs and trained associates how to speak to with consumers about whether they need to be concerned about the changeover and what solutions are available, even if that solution means a government-subsidized DTV converter, says Walmart representative Melissa O'Brien. "It's about the customer and what their needs are," she says. "If the best value for their situation is a converter box, then that's what we'll give them." One unique piece is a digital countdown clock that Walmart put on endcaps next to converter boxes in its TV department.Best Buy, Minneapolis, has also completed extensive in-store promotions to educate consumers (in addition to extensive training of its "Blue Shirt" sales staff), says company representative Brian Lucas. As soon as the converter boxes were available, the company hung English- and Spanish-language brochures in its stores and began putting messages about the transition on its in-store HDTV wall, Lucas says. In addition, the company set up tear-off applications for customers to get government discount coupons. "We know that one of the roles we play is that we're supposed to be a trusted source of information," Lucas says. "We've been very careful to make sure in all our signage in the store that the converter box is the first option."After taking down his in-store display, Abt placed converter boxes prominently in the front of the store and gave TV salespeople extensive training about the transition. For the past few months, the store conducted twice-monthly educational seminars on the digital changeover, Abt says. Plus, the company has sent salespeople into the field -- such as to nursing homes and other areas where concentrations of people might be affected -- to educate them about how to be prepared. "A lot of people who need to know don't know they need to know," Abt says. "This is the first time we've gone out to educate people on the transition."Similarly, Comcast has educated its in-store representatives about the changeover and is "helping consumers figure out what they need to do," says company representative Jennifer Allen. Comcast, which stands to gain should people decide to switch from over-the-air broadcasting to cable, has also begun offering its basic cable subscription for $10 a month if a customer signs up for phone or Internet service as well. More Bandwidth, More Competition Yet there's still some question whether these efforts -- in addition to the broadcast PSAs, Web and mobile campaigns and other efforts -- have been effective enough in getting the word out to the people that need to hear it. "I don't see a lot of anything. There's been an unfortunate lack of exploitation around this," says Shelley Palmer, managing director of media consultant Advanced Media Ventures Group. "Occasionally, when you walk through an electronics store, you might see a display."But even he says the number of consumers affected by the transition will be relatively small and the fix will be relatively simple. "For the vast majority of TV viewers, it's like Y2K. It didn't happen." The changes will be most profoundly felt, according to Palmer, after the transition when the analog spectrum will be used for other resources. Already, much of the spectrum has been sold off to wireless telecommunications companies, he says. As they start developing their next generation cellular and data networks, the effect on every retailer -- from electronics to grocery to department store -- will be profound."Every day [after Feb. 17], every retailer will be creating a place where Captain Kirk will be comfortable," Palmer says. "You don't need to be a futurist or soothsayer to predict it."The changes have already begun, according to Palmer. Already, consumers are using Web-enabled smartphones to check for competing prices on products right from the store aisles. As the networks get faster and more expansive -- thanks to the freed-up analog bandwidth -- such in-store cross-referencing will become commonplace, he says. With that, brick-and-mortar retailers will have a harder time competing on price and will have to begin selling a different experience, such as a store as a community that "stands for something," Palmer says. In any case, consumer behaviors are going to change, and "anything that impacts consumer behavior changes retail," he says. "Retailers are in a funny place," he adds. "They will have the power to promote and serve as they never have before. And there's going to be more competition than they've ever had before."

Retailers Aid Shoppers With DTV Switch

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