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BEYOND THE HYPE:
HDTV A PRETTY PICTURE WITH CONSUMERS
Consumer Reports survey shows owner satisfaction
high; But, TV
fans want more HD programming
—Annual Electronics Issue Offers New Advice on Extended Warranties for TVs—
—November issue also includes Ratings and buying advice on LCD, plasma,
rear-projection and front projector televisions, digital cameras, camcorders,
and digital recording devices; Plus, a new MP3 player/camera phone—
YONKERS, NY— Experts are all but unanimous in their praise of high-definition television. At its best, HD offers sharper, more detailed images than standard television and a better audio experience. But how noticeable and valuable are those distinctions to the viewer? A survey published in the Annual Electronics issue of Consumer
Reports indicates that HDTV is actually a hit with consumers. In a nationally representative survey of about 500 HDTV owners who receive HD signals by cable or satellite, 87 percent reported that HD indeed offers superior picture quality. But enthusiasm waned when Consumer
Reports asked about HD programming: 50 percent said they don’t get enough HD channels on cable or satellite.
The positive feedback from HDTV viewers
supports the recommendation that Consumer Reports has been making for the
past year or so: Consumers who are at all serious about TV or DVD viewing,
who are shopping for a TV they plan on watching often, should consider an
HDTV.
The experts at Consumer Reports note that
there are many reasons to consider an HDTV including the fact that HDTV offers
the best picture and sound quality;
movies and sports fans will have the most to watch as these types of programs
account for much of the current HD content. The magazine also notes that
prices have fallen sharply. The average price of a digital TV has dropped
by half or more since 2001. Also, rather than invest in yesterday’s technology, an HDTV will still be a good choice in a few years. And finally, Consumer
Reports notes that with HDTVs, consumers will have the maximum choice of sizes, types and prices.
New advice on extended warranties for TVs
Consumer Reports advises that an extended
warranty doesn’t make sense for conventional picture-tube TVs and digital cameras. These products are unlikely to break during the warranty period, and if they do, the typical repair often costs no more than the warranty. The decision isn’t so easy with a flat-panel LCD or plasma TV or a rear-projection TV using LCD, DLP, or LCoS technology. These pricey sets are too new to have a track record, yet most have a one-year warranty, just like proven products.
Deciding whether an extended warranty makes
sense depends on a few factors: how likely it is that there will be a problem,
the cost of repairing the TV or replacing it in a few years at a price likely
to be lower than it is now, the cost of the warranty, and what it covers.
Consumer Reports also notes that peace of mind is a consideration for consumers
worried about the cost of a catastrophic repair.
While there’s no solid information on these new TVs, the magazine offers the following advice based on initial repair data from the 2005 survey of subscribers, data from experts, and anecdotes from the www.consumerreports.org TV forum.
- Conventional and tube-based rear-projection
TVs: Don’t buy an extended warranty. Decades of data show that conventional TVs have been very reliable, and newer HD sets of this type appear to have just as few repairs. Rear-projection sets have been slightly less reliable.
- LCD and plasma flat-panel TVs: Don’t rule out an extended warranty. Data suggest that LCD and plasma sets are no less reliable in their first year of operation than tube-based TVs. But it’s too early to know what will happen in later years. An extended warranty isn’t essential, but it’s worth considering if the price is reasonable.
- Microdisplay projection TVs (LCD, DLP, or
LCoS): Seriously consider an extended warranty. Consumer
Reports data suggest
that these microdisplay projection sets are at least as repair-prone as
conventional rear-projection TVs in their first year, and anecdotal indications
suggest more trouble later on.
How to buy a warranty For consumers who want an extended warranty,
it almost always must be bought at the time of the TV purchase. Consumer
Reports recommends that shoppers
follow these steps:
Check the terms – See when the warranty starts and what it covers. Most begin when the set is purchased, overlapping with the standard warranty for the first year. So a three-year plan might only give two extra years of coverage. But extended warranties may cover things the standard warranty doesn’t such as damage from electrical surges. The magazine also suggests checking to see if the warranty provides for in-home service, typical for larger screen sizes, and a replacement set if the TV needs to go to the shop or it can’t be repaired.
Negotiate the cost – The markup on extended warranties is high, and consumers may be able to bargain for a lower price. Consumer
Reports suggests consumers refuse at the first sales pitch for a warranty, then to signal that they may be willing to buy for a lower price.
Pay no more than 15 to 20 percent
of the TV’s cost – The magazine notes that that’s the highest cost that makes financial sense. A three-or four-year plan priced at $400 is reasonable for a $2,000 TV. For TVs that cost less than $1,500, only a very low-priced plan would be worth it.
Visitors to www.consumerreports.org can
access the magazine’s exclusive step-by-step Decision Guides to help choose the right TV, digital camera, cell phone or computer.
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