This may provide a glimpse of what is to come in Asia. Discovery launched its HD-ready programming a year ago, followed closely by the National Geographic Channel. Star, MediaCorp and StarHub are all HD works-in-progress. But why does it seem broadcasters and manufacturers are so excited about it, when analysts estimate that only six per cent of the region owns an HDTV?
1 HDTV deployment faces a chicken-and-egg situation, whereby rapid development is in part stunted by a combination of high equipment costs and few programming options. But given its superior — albeit pricey — quality and 'wow' factor, it's no surprise that the major drivers of HDTV are broadcasters and electronics manufacturers. There are some well-documented tie-ups — Sony and CTV, the parent company of CCTV, Discovery and Philips.
2"Governments want everyone to go digital," said David Gunson, SVP, programming and broadcasting, Nat Geo Channel. This has been most obvious in Japan, which boasts the highest HD penetration in the world. Since the early '70s, the Japanese Government has been pouring money into its broadcasters to turn all programming into HD. Singapore's regulatory body, the Media Development Authority (MDA) has taken note. Next year, apart from supporting commercial HDTV launches, the MDA will roll out a city-wide education campaign touting the benefits of HDTV.
3 But unless you're dying to be one of the estimated 10 million homes in Australasia with an HDTV subscription, don't break your piggy banks just yet.
An HD-compliant screen costs between US$1,000 to $9,000, not including subscription charges and, for cheaper models, an additional set-top box fee. Perhaps this explains why penetration outside Japan is estimated to be in the low single-digits. That said, prices have dropped quickly in the last two years — by nearly 50 per cent in Hong Kong, for example.
4 Certain sporting events have got broadcasters running on deadline too. The Olympics is an obvious nod, but Bryan Wang, an analyst at In-Stat, is watching other sports too. "I think Olympics will help moderately," he predicts, "but other annual sports events will drive it more, such as the English Premier League, 2010 World Cup, and so on." Even this year's World Cup helped HDTV take a giant leap forward — all 64 matches were produced in HD format, compared to 48 in 2002.
5 According to a November report from In-Stat, the main hindrance for HDTV deployment is insufficient bandwidth for satellite, terrestrial, cable and IP networks. For that reason, although Discovery, NatGeo and the BBC can't stop shouting about it, most private operators in mature markets are still hesitant to create HD-ready channels. Which might explain why in Taiwan this year, the Government gave public broadcaster PTS a whopping US$138 million to advance its digital broadcasting infrastructure.
6 True to the saying that adland is often reluctant to adopt new technology, most advertisers and media agencies are biding their time. According to Keiko Bang, founder of Bang Productions, it is too cost-ineffective to shoot small projects in HDTV. "Market prices are not in line with budgets," she said at the recent Asia Television Forum. In addition, few people in Asia are skilled enough to produce in HD. A mature market like Singapore offers fewer than 10 HDTV cameras for rent, compared to over 35 standard definition sets.
7 For now, the perceived benefits just don't seem to outweigh the costs: meagre programming options and high subscription rates simply don't justify the hefty price tag for
94 per cent of consumers in the region. But although the current environment looks grim, there's no telling what the players will do to meet the Olympics deadline. Already, broadcasters are lining up for what is being touted as the first Olympics broadcast in HDTV.