(EMGR Editor’s Note: This is the second part of an excerpted copyrighted interview with mogul Mark Cuban by Phillip Swann. Wednesday “Why Nobody in Erie Cares about HDTV”…or How To Successfully Market Consumer Technology in Erie And Become Number #1--An Erie Case Study.)
By Phillip SwannWashington, D.C.
By Phillip SwannWashington, D.C.
(August 30, 2006) -- Here is part two of our exclusive two-part interview with Mark Cuban, president and co-founder of HDNet.
Today, Cuban comments on whether 1080p provides a better HD picture; and what's next for HDNet.
TV Predictions: You're always surprising the industry with your big-name hires (HDNet just signed Dan Rather for a weekly news show.) and innovative productions. What will be the next big surprise from HDNet or HDNet Movies?
Mark Cuban: The number of (original) movies we produce and the fact that we are increasing the budgets considerably. Things have worked out well for 'Day and Date', particularly at the DVD aisle. (Editor's Note: Day and Date refers to HDNet airing original movies the same day they premiere in the theater and are released on DVD. Cuban-owned companies include a film studio and a theater chain, which boosts the profits derived from the Day and Date releases.)Movies like Bubble, The War Within have shipped far more units than we expected, which allows us to reinvest that money and create more value for our subscribers.
TVP: A Microsoft XBox exec says 1080p is overrated, that 1080i offers a picture just as clear and vivid. Do you agree? (Note: Several TV manufacturers are now launching 1080p TVs, saying they will offer a better picture than past models which display 1080i and 720p.)
MC: Yes. But at the same time, it's much harder to cheat 1080p. It's far harder to steal bandwidth from it. It uses what it can get, and that leads to a better picture. (Note: Cuban is referring to the various factors that can reduce HD picture quality, including cable and satellite operators who sometime 'squeeze' the HD picture to allow for more channels to be transmitted.)
"There is going to be the biggest price and marketing war we have ever seen in this industry starting next Christmas."
I think cable and satellite are struggling with just how much picture quality matters. It matters a ton. HD consumers are getting smarter by the minute and quality of picture will be a deciding factor.
TVP: Will the 2009 Digital TV transition in the United States go smoothly? Or, will it be the technological equivalent of Katrina? (By federal law, all TV signals must switch from analog to digital in February 2009. Viewers will need a Digital TV or a converter box to watch TV at that time.)
MC: Yes, it will go smoothly, but not according to the press. The media will be littered with stories of little old ladies that can't get their favorite church sermons on Sunday morning, or 100 year old men who have been watching their favorite team since the NFL was founded and now they don't know how to do it. That's what the media does. However, that won't be the meat and potatoes of what is going on. Why? Because there is going to be the biggest price and marketing war we have ever seen in this industry starting next Christmas. There are 15 million or more households and untold number of people who won't have a clue about what the changeover means to them. Knowing this, cable and satellite will go to war trying to lure those 'analogniks' (the current Erie consumer) to their side of the fence.
TV manufacturers will be pricing their LCD and HDTVs to try to generate replacement sales'Avoid the confusion of the cut-off" "Will the cut off cut off your favorite shows?" "Buy our TV/Sat/Cable service today. Try our special $1 installation option or trade in your soon to be worthless analog TVs and we will...."You get the picture.
It's going to be very, very interesting.
TVP: What (or who) is the most impressive thing you've ever seen in high-def? Something that took your breath away?
MC: Watching classic movies on HDNet Movies. I watched the Towering Inferno last night and it looked like it was in 3D. Of course, almost any movie or show shot in original HD looks stunning. I think in 2nd place is watching news footage from Iraq and other hotspots. News really benefits (from HD) more than anyone realizes. It just costs a fortune to get equipment around the world. Which is an opportunity for us. We have stringers in more than 40 cities and growing with cameras we have provided. And we are going to let Dan (Rather) leverage the hell out of them."
Disclosure Note: HDNet is an advertiser at TVPredictions.com
"Congress passed a law on February 1, 2006, setting a final deadline for the DTV transition of February 17, 2009. Most television stations will continue broadcasting both analog and digital programming until February 17, 2009, when all analog broadcasting will stop.." FCC http://www.dtv.gov/
The EYE is STILL watching and doesn't like what they can't (W)SEE.
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