1. TeaTree Systems
by Drew Kessler
April 19th, 2010
Drew Kessler
Daniel Zhao
Bill Wenrich
Michael Chamberlain
HDTV:Switching Costs and Obstacles to Adoption

2. Agenda
Financial Obstacles to HDTV adoption
Producer
Consumer
Unaddressed Technical Issues
Production of HD content
Distribution of HD content
Consumer Reactions to the Marketplace
Conclusion
Questions
2
3. Financial Obstacles - Producer
3
Providing HD content includes a high switching cost
Purchase of cameras, editing workstations, video displays.
Increased requirements for data storage.
Production of optical discs for distribution
HD DVD lost the format war, but
has an established user base
DVD production facilities require significant adjustments to
manufacture BluRay discs.
4. Financial Obstacles - Consumer
4
Full adoption requires investment into consumer electronics
Consumer electronics have a short time to obsolescence
New television, video player, video discs
Amateur production also has a high barrier to entry
Demands a new camera and editing software.
Space for storing HD content on a computer is quickly exhausted
Not possible to burn a BluRay disc for distribution
5. Unaddressed Technical Issues
5
Methods of transmitting HD content
BluRay discs provide high-quality content but require a compatible player
Bandwidth for broadcast content is limited
Consumers cannot make a BluRay disc
Compression
HD content takes over two times the bandwidth of SD
Impossible to transmit large amounts of uncompressed HD over existing networks
Compression reduces size, but introduces significant loss in quality
6. Consumer Reactions to the Market
6
Purchase of HDTVs has increased as price goes down and the technology matures.
Given the recent format war, there is still apprehension about short cycles of obsolescence.
Confusing terminology
HDTV and Digital TV sometimes incorrectly used interchangeably
Uncertainty among consumers about whether they need an HDTV for the switch to digital broadcast television
Differences between HDTV televisions
1080p, 1080i, 720p
LCD, Plasma, DLP,
7. Conclusion
7
Market factors hinder production of HD content and the adoption of HDTVs.
Consumers are wary of the rapidly-changing market.
Compression is necessary for HD broadcasts, even though it reduces quality.
There are no provisions for consumers to share their amateur productionson optical media.
There is confusion about the benefits, costs, and justifications of owning an HDTV.
8. TeaTree Systems
Drew Kessler
Daniel Zhao
Bill Wenrich
Michael Chamberlain
Questions?
8
9. References
9
Dupagne, M and Seel, P.B., High-Definition Television A global Perspective, Iowa State University Press, 1998
http://www.lacitycollege.edu/academic/departments/cinema/images/StudioB2web.jpg
http://www.sustainabilityninja.com/wp-content/uploads/2009/03/plasma-tv.jpg
http://www.hnm.gr/ns1/images/stories/rokproduct/Blu-Ray-Logo.svg.png
http://www.pcworld.com/article/144800/is_hdtv_compression_damaging_picture_quality.html
http://www.widemovies.com/directvcomp.html
http://en.wikipedia.org/wiki/File:Common_Video_Resolutions_2.svg
http://www.pcmag.com/article2/0,2817,1899844,00.asp
http://www.pcworld.com/article/144800/is_hdtv_compression_damaging_picture_quality.html