Mark Cuban On HDTV!

(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.

(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

Click TVPredictions.com to see the rest of today's Swanni Sez.© 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.

The Swami Chats With Mark Cuban About HDTV! Listen UP Erie Media.

(Editor’s Note: The following is part one of a copyrighted--excerpted interview with Mark Cuban conducted by TV technocrat Phillip Swann. Cuban's roots are from Western Pennsylvania. Part two will be posted tomorrow, but you can always peak ahead by going to his website. Wednesday will be a special post titled, “Why Nobody in Erie Cares about HDTV”…or How To Successfully Market Consumer Technology in Erie And Become Number #1--An Erie Case Study.)

The TV Predictions Interview

Mark Cuban Speaks Out!
By Phillip Swann

Washington, D.C. (August 30, 2006) -- Mark Cuban, owner of the Dallas Mavericks basketball team, is not one to pull his punches.

Just ask NBA Commissioner David Stern. The hoops czar has slapped Cuban with repeated fines for criticizing the officiating in Mavericks' games.

However, the subject of High-Definition TV might incite Cuban even more than whether Dirk Nowitzki gets the call while driving to the basket.

Cuban, co-founder of HDNet, the high-def network available on satellite and most cable systems, believes that HDTV will revolutionize television. However, he says many industry types -- and journalists -- don't understand what Americans really want from HDTV.

Today, in part one of a two part TVPredictions.com interview with Cuban, he reveals which new HDTV DVD player he would buy….…

In part two, Cuban comments on whether 1080p provides a better HD picture;… and what's next for HDNet.

TV Predictions: The HDTV industry has done a great job of reaching males and the tech-savvy. But who does the industry need to win over before it becomes a mass product? Females? Older people? Younger people? The middle class?

Mark Cuban: In terms of TV sales, it's (HDTV) already a mass product. It's the same cycle as PCs went through. It's purely about price. When replacing or adding a TV, people try to get the most for their money. HDTV is the far better deal right now and getting better by the minute. Add to the utility of the TV, the furniture and coolness factor, and the work is already done.

If prices continue to fall, and the (Digital TV) switchover happens in (February) 2009, you will see the end of analog, except for small portable (TVs) and off off brands, within 3 years.

TVP: Are sports still the main driver of HDTV sales? Or, are we starting to see other forms of entertainment (movies, documentaries, dramas etc.) bringing in new HDTV buyers?

MC: I don't even think it's content driving the sale of the TV. It's price and picture quality. Content is the driver in the competition between video providers. As the TV becomes a bigger focal point in the living room and consumers realize they can get far better than SD (Standard Definition TV) on LCDs, they are going to startdemanding more and more real HD (not upconverted) and it will make more sense to consumers to order it from their providers.

"Why in the world would you want to do (HDTV) content built around a talking head?"

TVP: Many people are saying (particularly Swanni) that TV personalities and celebrities are becoming increasingly concerned about how they look in HD. Is this a real issue or just a fun topic for journalists?

MC: It's a fun topic for journalists and you guys are missing the point. HDTV adds wide screen ability, resolution and great audio. Why in the world would you want to do content built around a talking head?

The value in a journalist like Dan Rather (just hired by Cuban to host a weekly news show on HDNet) isn't sitting at a desk reading the news, It's being a journalist, uncovering stories and then leveraging the video and audio abilities of the medium to tell the story in a more compelling fashion.

It would be a waste to do news the way it's always been done. Which is exactly why we think we have a great opportunity with Dan Rather Reports (debuting in October) and HDNet World Report (HDNet's other weekly news program.)

TVP: There are two new High-Definition DVD formats on the market. If you were a cost-conscious consumer, would you buy a HD-DVD (backed by Toshiba) or a Blu-ray player (backed by Sony)? Or, would you wait until the HDTV DVD format war is settled?

MC: I would buy a $399 PC and connect it to my HDTV and buy and play all the Windows Media HD Content out there. And then I would buy a DVR from my provider and hack it to add a Terabyte drive and record everything and anything. But that's me.

If I had a beautiful Home Theater that I used to impress my friends, I would buy HD-DVD today and wait till the dual use boxes came out to upgrade to them.

Editor's note: A few electronics companies have hinted they will soon launch DVD players that can play both Blu-ray and HD-DVD discs; the two formats are not compatible with each other, meaning one DVD won't play on the other's machine.

"I don't even think it's content driving the sale of HDTV. It's price and picture quality."

TVP: Several cable TV operators jointly own INHD, a rival HDTV network carried on cable systems. Is cable's ownership of INHD blocking their carriage of HDNet?

MC: We are told that bandwidth is tight, which I truly believe. But as customer expectations of true HD content increases, and it absolutely will, then having more HD, and in particular original content only available in HD, will make a big difference. As will having only pure HD content and no upconverts.

(Note: Upconverting is when a TV network or provider converts a sub-HD picture to HD; the picture may be improved, but it's not real high-def.)

More HDTVs were sold than analog in 2006. The delta will increase exponentially in 2007. Even if only 50 to 60 percent subscribe to HD services, that's a big number with higher expectations.

Far more important is the growing number of educated HD consumers. The HD sub who has had their TV for several years knows the difference between HD and upconverted and every bit of research says the more HD experience, the more they want. (Editor’s Note: This scares the crap in certain Erie TV circles)

We hear every day -- and in ever increasing numbers -- from subscribers who have switched to satellite from cable (operators) who don't offer the HDNet (channels) because they prefer watching great content in HD.

Click Cuban to read part two of our interview with HDNet's Mark Cuban.Disclosure Note: HDNet is an advertiser at TVPredictions.com

Click TVPredictions.com to see the rest of today's Swanni Sez.

© 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.