NEW KNOWLEDGE NETWORKS STUDY SHOWS HOW HIGH-DEFINITION TV RECEPTION CHANGES VIEWING HABITS; NO EFFECT ON ADVERTISING AVOIDANCE

About 50% with high-definition reception say they "always" make the effort to watch in HD; also more likely to plan viewing

Menlo Park, CA; September 12, 2007: According to a just-released Knowledge Networks study, access to high-definition television (HDTV) programming – one of the key digital technologies being embraced by mainstream consumers – significantly affects viewing behavior, making users more selective about what they watch and more likely to plan viewing in advance. High-definition (HD) reception does not seem to make consumers more likely to watch commercials, though; while they find HDTV ads more "relevant," they are just as likely to click away from them as regular ads.
The Knowledge Networks report – which is part of The Home Technology Monitor™, an ongoing source of definitive data on ownership and use of media technologies – indicates that, while 20% of homes now have an HDTV set, less than two-thirds (61%) of those homes have true high-definition reception. But the effects of having HD programming are substantial; among those who get high-definition reception signals:

• one-third always check their HD channels first when channel surfing or checking for a program
• about half "always" make the effort to watch in HD if a program is simulcast in both standard definition and HD
• about 70% plan their viewing ahead of time, compared with just over half of viewers in non-HD homes

The survey also compared advertising attitudes between HD and non-HD viewers:

• overall ad avoidance is similar among HD and non-HD persons: about half of each group say their usual response to a commercial break is to change channels
• HD viewers are more likely to agree that ads in HD programs are relevant to their needs and interests (41% vs. 35%). However, HD viewers are less likely to say they are inclined to purchase from advertisers during HD programs than non-HD viewers are from advertisers on regular TV programs (23% vs 37%)

KN's in-home ethnographic research, primarily among early-adopter homes, suggests discouraging factors for further mainstream consumer growth may include price of entry, lack of understanding of the technology, and confusing set-up and user interface procedures. Improving usability would also likely increase use of HD channels.

"The fact that those with high-definition reception habitually prefer HD programs is creating a distinct advantage for those entities that have been able to stake out this beachhead," said David Tice, Vice President of Client Service at Knowledge Networks/SRI and Director of The Home Technology Monitor™. "For advertisers, the challenge is to take advantage of this program preference in a way that is truly worthwhile; and for consumer electronics businesses or television service providers, there is still a need to address barriers perceived by consumers."
The report, How People Use® HDTV, was produced as part of The Home Technology Monitor™ and is based on:

• in-depth interviews – utilizing KN's trademarked How People Use® methodology – with 519 consumers who have access to an HD set and programming, and 195 who do not have an HD set
• in-home ("ethnographic") observation of 22 individuals with high-definition access

The Home Technology Monitor™ is the definitive source of reliable insights into consumers' ownership, use, and response to media-related technologies, from broadband to DVRs to mobile video. The program builds on two decades of research, combining top-quality nationwide surveys of technology ownership with special reports on key devices and services. These special reports are usually based on Knowledge Networks/SRI's exclusive How People Use® media methodology, a proven technique for studying the quality of media exposures.

Knowledge Networks specializes in solving complex, high-impact problems, providing extraordinary quality and service to leaders in business, government and academia. We work closely with clients to create healthy consumer-brand connections, effective marketing and advertising, sound public policies, and accurate social science research. We have established respected practices in media, marketing, advertising, and government & academic studies. KN excels in study design, analytics, and custom panel creation; we deliver affordable, statistically valid online research through KnowledgePanel® – the only available probability selected, nationally representative Internet panel.

In 2001, Knowledge Networks acquired assets and expertise from Statistical Research, creating Knowledge Networks/SRI. KN/SRI is one of the country's leading authorities on consumers' use and ownership of media and technology. The company is the leading measurement provider for Yellow Pages directories; other specialties include cross-media allocation (MultiMedia Mentor™) and studies of consumers' interactions with media (How People Use® research).

The standard error expected for a question asked of the total sample for How People Use® HDTV would be approximately +/- 4%.