The document discusses the financial obstacles and technical issues surrounding the adoption of high-definition television (HDTV). It notes that producing and distributing HD content requires expensive new equipment for producers. Consumers also face high costs to upgrade televisions and playback devices. Additionally, transmitting uncompressed HD content is difficult given bandwidth limitations, and compression reduces quality. There is also consumer confusion around HDTV technology and formats. Overall, the document analyzes the market factors hindering wider production and adoption of HDTV.

1. TeaTree Systemsby Drew KesslerApril 19th, 2010Drew KesslerDaniel ZhaoBill WenrichMichael ChamberlainHDTV:Switching Costs and Obstacles to Adoption

2. AgendaFinancial Obstacles to HDTV adoptionProducerConsumerUnaddressed Technical IssuesProduction of HD contentDistribution of HD contentConsumer Reactions to the MarketplaceConclusionQuestions2

3. Financial Obstacles - Producer3Providing HD content includes a high switching costPurchase of cameras, editing workstations, video displays.Increased requirements for data storage.Production of optical discs for distributionHD DVD lost the format war, but has an established user baseDVD production facilities require significant adjustments to manufacture BluRay discs.

4. Financial Obstacles - Consumer4Full adoption requires investment into consumer electronicsConsumer electronics have a short time to obsolescenceNew television, video player, video discsAmateur production also has a high barrier to entryDemands a new camera and editing software.Space for storing HD content on a computer is quickly exhaustedNot possible to burn a BluRay disc for distribution

5. Unaddressed Technical Issues5Methods of transmitting HD contentBluRay discs provide high-quality content but require a compatible playerBandwidth for broadcast content is limitedConsumers cannot make a BluRay discCompressionHD content takes over two times the bandwidth of SDImpossible to transmit large amounts of uncompressed HD over existing networksCompression reduces size, but introduces significant loss in quality

6. Consumer Reactions to the Market6Purchase 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 terminologyHDTV and Digital TV sometimes incorrectly used interchangeablyUncertainty among consumers about whether they need an HDTV for the switch to digital broadcast televisionDifferences between HDTV televisions1080p, 1080i, 720pLCD, Plasma, DLP,

7. Conclusion7Market 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 SystemsDrew KesslerDaniel ZhaoBill WenrichMichael ChamberlainQuestions?8

9. References9Dupagne, M and Seel, P.B., “High-Definition Television A global Perspective,” Iowa State University Press, 1998http://www.lacitycollege.edu/academic/departments/cinema/images/StudioB2web.jpghttp://www.sustainabilityninja.com/wp-content/uploads/2009/03/plasma-tv.jpghttp://www.hnm.gr/ns1/images/stories/rokproduct/Blu-Ray-Logo.svg.pnghttp://www.pcworld.com/article/144800/is_hdtv_compression_damaging_picture_quality.htmlhttp://www.widemovies.com/directvcomp.htmlhttp://en.wikipedia.org/wiki/File:Common_Video_Resolutions_2.svghttp://www.pcmag.com/article2/0,2817,1899844,00.asphttp://www.pcworld.com/article/144800/is_hdtv_compression_damaging_picture_quality.html