At 13:05 28/09/01 +0000, Pete Vincent wrote:

(FWer)
>>>We are heading for something much more
>>>like the late 1890s, early 1900s - recession followed by
>>>growth based on the next flight of technologies in the current
>>>(new) set - fuel cells and medical biotech
(KH)
>>I agree in principle except that I see the average consumer will not go
>>much further in future years into spending on consumer products of the
>>techno sort unless they're cheap. Yes, to biotech services, of course. In
>>fact, because of the increasing needs of future health and old age services
>>(of unknown financial cost, but likely to be large), I think a great many
>>people will be increasingly hesitant to spending on big consumer items
>>(other than houses and cars) in the future. 
(PV)
>There is another fairly major spending imperative looming in north america:
>the introduction of digital/high definition television is continuing
>on schedule, with the old NTSC standard on track to be retired, and
>its frequencies reassigned, in the US, in early 2006, with Canada's stated 
>intention to follow suit with about 18 months delay. While the minimum
>requirement for the change is a set-top receiver/adapter box, new
>programs in both US and Canada are already appearing in the 16x9
>aspect ratio of the hi-def standard, and new hi-def (1100x1900 pixel)
>sets are beginning to appear for sale, albeit with very high early
>market pricing (2-20k). The new frequencies (around 650MHz) are aready 
>broadcasting in the US, and in Canada the signal is now available
>via satellite. I expect that once the tv-addicted population of north
>america gets a look at the incredible image improvement offered by
>the new hi-def standard, the demand for full capability sets will
>totally occlude the market for the minimal set-top adapters. There
>will be a wholesale upgrade of all the tv sets in north america,
>starting right now, peaking around 2006.

Experience in England, where we've had HDTV for some four/five years, is
that "wholesale upgrade of all the tv sets" has not occurred so far. Most
HDTV sales so far are to the middle class for status reasons. The
Government intended to close down analogue transmission when ownership of
digital TV reached (I think) 95% and this was expected to happen by around
the end of this year or early next. But this won't happen. At present,
ownership is around 40-50% and the sales curve suggests that it might
flatten out to about 75% ownership in the next year or two with slow
take-up thereafter -- mainly depending on younger people buying HDTV in
their first homes while the older owners of analogue are simply dying out
over the next couple of decades. There are many like me in their mid-60s
who could afford the present high-priced HDTV but have no wish to tap into
multi-channel non-public service digital TV, are satisfied with the
existing quality of the analogue screen, and couldn't care less about
"keeping up with the Jones". I think I'm right in saying that present sales
of set-top boxes (mainly to young and middle-aged working class male sports
enthusiasts) is still exceeding HDTV sales -- but these won't be able to
receive public service digital TV when analogue is cut off (not that this
particular segment of the population would care very much!).

Existing public service analogue TV (BBC and ITV) is now a precious part of
the lives of millions of older poor people, who are often lonely and
trapped in their homes most of the time, and there'd be a massive political
backlash if the Government tried to cut off analogue transmission
peremptorily within the next ten years or so. My guess is that the
Government will call a halt to analogue TV transmission when ownership
reaches around 75/80% (in, say, two or three years' time) but I'm pretty
sure that they will have to give a special "TV grant" to pensioners in
order to buy HDTV sets (in the same way that pensioners receive a "cold
weather" grant at Christmas).

As to the price of HDTV sets, yes, they're still very high (at around
US$900-1,000 compared with US$200-400 for analogue sets) as manufactured by
Western firms which are creaming off at present. But now that China is in
the WTO, I'd expect that Chinese manufacturers (which already make most of
the analogue TV sets in the world) will be flooding Europe with (good
quality), low-priced HDTV sets pretty soon. In America and Canada there
might be intensive lobbying by home manufacturers against these imports but
this won't wash much. If you think about it, cheap HDTV sets from China
will let Governments off the political hook as regards helping pensioners
to change over.

Keith Hudson
___________________________________________________________________

Keith Hudson, General Editor, Calus <http://www.calus.org>
6 Upper Camden Place, Bath BA1 5HX, England
Tel: +44 1225 312622;  Fax: +44 1225 447727; 
mailto:[EMAIL PROTECTED]
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