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The future of American broadcast television is coming February 17^th when U.S. stations are supposed to shut down forever their analog transmitters. After then, all broadcast TV in the United States will be digital.

Too bad we aren’t ready.

We’ve had more than a decade to prepare for this moment. I did the first-ever PBS HD broadcast back in 1998 and explained then what was going to happen next month. The date was already set. But some people just don’t listen and I think the confusion we’ll see next month among parts of the TV audience will be huge.

Most of us actually have nothing to worry about because those who have satellite or cable TV, which is more than 80 percent of American TV viewers, won’t even notice a difference. That’s because the cable and satellite companies will continue to provide us with the same signals they always have, even though it means converting a digital signal back to analog.

In one sense the coming of DTV is a boon to cable and satellite companies because it may drive new customers to them. BUT IT HASN’T YET. Look at Time-Warner Cable’s recent announcement of flat subscriber growth. If customers were flying to cable because of worries about the DTV transition those TWC numbers would have been up, not flat. And they will go up, but not until the stations pull their plugs next month.

That’s the way some of us are, you know. We wait until our asses are on fire to do something about maintaining our Oprah fix

And even then you know the cable companies will screw it up because of the huge influx of new business and because, well, they ALWAYS screw things up. All those who love their cable TV service raise your hands.

Next month there will be howls of outrage from people who have somehow gone an entire decade watching TV and ignoring all those Public Service Announcements about the switchover. What does that say about the true power of advertising? Pitiful.

Just this week the Consumer Electronics Association released the results of a poll trumpeting the fact that 90 PERCENT of TV viewers now know the DTV switchover is coming. That’s supposed to be good news.

Think about it for a moment. There are 110 million households in the U.S. with televisions. According to the Consumer Electronics Association after a decade of explaining and promoting the changeover at a cost of hundreds of millions of dollars, ELEVEN MILLION HOUSEHOLDS STILL DON’T KNOW WHAT’S COMING.

And remember the CEA survey only concerns awareness and says nothing about whether people have actually prepared and are ready for the coming change in their TV service. Those numbers are undoubtedly lower than 90 percent.

Given the penetration of cable TV in this country the actual numbers probably won’t be that bad. If 80 percent of all viewers have cable or satellite one might hope that 80 percent of the clueless 10 percent are already covered, meaning those who will be surprised when Judge Judy goes dark might be as few as 2.2 million households. But my guess is that those who don’t know about DTV are LESS LIKELY to have cable or satellite so let’s approximately double that at-risk figure to four million households.

All these people have to do, of course, is get a digital converter box and maybe a new antenna to be able to watch DTV on their old ATV. The government even has a coupon program that will give us $40 off on up to two converter boxes per household. That’s up to two $40 coupons per household if I wasn’t clear. With some boxes costing EXACTLY $40, this means switching to DTV can be free! That is IF it works.

I live in Charleston, South Carolina, right downtown in the historic heart of the city. The day after Christmas 2006 I bought on sale a very nice Samsung HDTV and a Terk HDTV Pro indoor antenna – an antenna that WOULDN’T be covered by those $40 coupons. Though apparently many analog antennas are fine for DTV, I didn’t have an antenna at all, so I had to buy one.

In December, 2006 I was able to receive with acceptable quality ONE broadcast HD station on my HDTV. As of this morning – two years later — I am able to receive TWO acceptable HD signals.

I don’t live in the boonies. I don’t even live in the suburbs. I live less than seven miles from all five local HD transmission towers. I live in a colonial city that limits to 55 feet the maximum height of any building in my part of town. I have a name brand TV and a name brand antenna. Now my guess is that in the last two years digital receivers and antennas have both improved somewhat, but I should be able to get more than 40 percent of the signals that are supposed to be available.

Based on this experience my guess is that a lot of people are going to be disappointed with their new digital broadcast TV service. The FCC estimates that the possible TV audience will shrink by two percent, which is to say that the DTV signals won’t make it to two percent of the audience currently receiving analog TV. The FCC is hoping that most of those two percent have cable or satellite or maybe don’t give a damn. They are hoping, too, that their two percent estimate is too high. But my experience suggests that it is actually too low.

Here’s what I think is going to happen over the next two months. First, we’ll run out of converter coupons. Coupon supplies are already low and more haven’t yet been authorized because, of course, they represent a financial obligation – one that requires Congressional approval. Interestingly there are plenty of converter boxes available, which means that people have coupons they haven’t yet used. Maybe they are hoarding coupons. Maybe they are just lazy. Maybe, like mail-in rebates, lots of converter coupons are lost and will never be used. Whatever the reason there is going to be a big blow-up when up to four million households suddenly want converter boxes and can’t get coupons.

But even when they get their coupons and their converter boxes some percentage of the broadcast viewing audience is going to be dissatisfied with their new DTV service. I will be surprised – REALLY surprised – if this number is under 10 percent of those who don’t have cable or satellite, which puts us back with somewhere around two million really unhappy VOTERS.

Two million pissed-off people is a LOT of pissed-off people in a nation that is essentially governed through popularity polls. Two million angry people could have ended the war in Iraq. You can bet two million angry people will cause a tsunami of too-late over-reaction in Congress.

The politicians know this is coming. There are proposals right now in Congress to allow some TV stations to keep their analog transmitters running awhile longer. But this just delays the problem and doesn’t solve it.

This too shall pass, of course. People will survive a short time without Dr. Phil. But don’t be surprised if Congress grabs money from the Fiscal Stimulus wallet and starts handing out subsidized basic cable subscriptions or even HDTVs to those people who waited.

Maybe they aren’t so dumb after all.

Microsoft

Microsoft may or may not make a deal for Yahoo’s search service.  What neither firm realizes yet is there is a better way to do searches with value advertising.  It will be easier than what Google is doing and can produce more tangible results.  Right now both firms are in the mind set of “competing with Google” instead of being creative and innovative.  When they start thinking independently and start tuning into what the customer needs, Google will have some competition.

Apple

If Apple would port its Mac software (iWork, iLife, Final Cut, etc) to Windows it could quickly OWN the software market.  Microsoft’s competitive advantage is not Windows — it is Office.  Apple could take them out if it chose to.  They won’t in 2009.  But if the economic crisis really hurts Apple’s 2009 business, taking business away from Microsoft in 2010 could become a real consideration.

Google

Android, Google’s phone software will suddenly become much better and will become the preferred software platform for the cell phone industry.  Competitors of the iPhone will jump on the Android bandwagon and rush many new products to market in 2009.  This will force AT&T and Apple into some uncomfortable decisions.  Should AT&T be open to iPhone competitive products?  Should Apple open up to other telco providers?

IBM

Thanks to the economic crisis, the IT industry will take a beating.  To survive many IT providers will cut costs and services to the point of driving away customers.  IBM is more diversified and has deeper financial reserves.  In time customers will begin to return to IBM, but with some new expectations.  They’ll be willing to pay more for help desk workers who speak understandably.  They will want to see more people on site, more face-to-face support.  This won’t stop the rush to offshore IT jobs.  It will however signal a change in the direction of the pendulum and will force IT providers to rethink their business model.

So far IBM and most IT providers have cut support costs by shipping work offshore to lower paid workers.  Someone in the industry will finally realize there is another way to cut — by using quality improvement techniques to reduce the occurrence of problems.  This will become a game changer in the industry.  Sadly IBM is too big, too bureaucratic, too set in its ways to catch this wave.  What will happen instead is firms will start in-sourcing their IT again.  Watch for this in the next 5 years.

Yahoo

Someone will buy a controlling interest in Yahoo.  There will finally be a big house cleaning of Yahoo’s board and senior management.  Then either of two things will happen.  The new leadership will unlock Yahoo’s value and creativity — and Yahoo will soar again.  Or, Yahoo will flounder and continue to become less relevant over time.

DTV

There will be problems with conversion to DTV.  It will take months, perhaps a couple years for the problems to become apparent.  The original NTSC system was basically an “open” system.  All stations, satellite, and cable providers used it and it worked on every television made.  With DTV content providers will attempt to introduce proprietary technology in an attempt to “lock in customers.”  Only open-air transmissions will use DTV.  Cable and satellite will use different and proprietary digital communications.  Cable and satellite will start increasing their prices to the point where consumers start spending less.  To make matters worse, the Internet will become a big provider of DTV content and it will also use “different” technology.  At the same time ISP’s will implement bandwidth restrictions to thwart DTV content that is not their own.  It won’t take long for the S consumer to get very upset with things.

Internet Centric devices

Theft of smart phones and Internet centric devices will become a big problem.  Thieves will figure out how to steal identity information, raid bank accounts and investments, and so on.  This will become a big problem.

Intel/AMD

Intel will launch an 8-core processor for the PC market.  It’s price point will be too high for the consumer market and the product will languish — forcing Intel to lower the prices of its product line.  Worse, Microsoft will limit its support of this chip to Vista.  While we can expect Vista to continue to get better and better, the extra cost and hassle of Microsoft’s software, Office upgrades, etc will limit sales.  Apple will swoop in and take more market share.

Obama

As a result of all the economic problems and scandals on Wall Street, I predict the Obama administration will propose a comprehensive financial monitoring system for the banking and investment community.  It will be proposed in 2009 and will take a few years to implement.  With it government agencies will have the means to thoroughly monitor and regulate the industry.

The Obama administration will move forward, as promised with a national program to computerize medical records.  They will however, miss one of the greatest values of such an effort.  Because of privacy concern, government ignorance of technology, etc the system will not have the ability for the medical industry to do data mining.  With computerized records we will finally have the ability to spot drug interaction problems and perform research on the effectiveness of treatments.  With data mining with patient privacy protection, our health care system can be greatly improved.  We will miss that opportunity.

The Obama administration and/or Google will create a new Google Gov service.  Like its news service, Google Gov will start tracking everything going on in Congress.  Committee hearings, votes, discussion of bills and amendments will be captured by Google and made public within days.  We will finally be able to see in real time what our elected leaders are really doing, who is influencing them, etc.  This will be a game changer.