Blackfriars' Marketing

Tuesday, June 14, 2005

Expect dramatic TV pricing the next two weeks

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Mark Schubin, who writes the Monday Memo for DigitalTelevision.com has been noting that TV manufacturers are making a lot of business adjustments as one of the FCC-mandated deadlines for the transition to digital TV approaches on July 1, 2005. The deadline in question is the one where all large-screen TVs -- those with dimensions greater than 36 inches -- must have digital ATSC tuners. Further, 50% of mid-sized TVs -- those with dimensions between 25" and 36" -- must have digital tuners.

You are probably asking yourself, "So what?" Well, there's a small problem. Few manufacturers are actually producing product lines that fit perfectly with the FCC mandate. So what do those manufactures do with all those TVs with analog tuners as the deadline approaches? Like any good business people, they try to sell them any way they can prior to the deadline. And that means slashing prices in many circumstances. So if you have had your eye on one of those fancy flat screen TVs and you don't care about digital tuners because you don't get over-the-air programming, you'll see some dramatic price drops on very nice large-screen TVs during the next two weeks or so.

But there's more than one way to skin a cat, or in this case, meet an FCC mandate. Mark observers in his column:

Manufacturers are continuing to announce tuner-free monitors instead of DTT-reception circuitry to comply with the mandate. Here's a story from This Week in Consumer Electronics (TWICE) about Westinghouse dropping analog tuners to avoid the mandate:
http://tinyurl.com/b29qk

This one is a little different. It's a story from TWICE about Akai offering near identical models at about the same suggested prices with either integrated DTT reception or no tuners. The ones with no tuners will cost retailers less. I wonder which they will promote:
http://tinyurl.com/dctc2

You have to give these guys points for creativity if nothing else.