Experts are all but unanimous in their praise of high-definition television (HDTV). At its best, HDTV 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 ( http://www.ConsumerReports.org?source=CR24 ) 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 magazine 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 magazine 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 magazine 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 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 http://www.ConsumerReports.org?source=CR25 can access the magazine's exclusive step-by-step Decision Guides to help choose the right TV, digital camera, cell phone or computer.
Consumer Reports' Annual Electronics issue also contains a special section devoted to 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, and much more.
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Copyright Consumers Union 2005. The material above is intended for legitimate news entities only; it may not be used for commercial or promotional purposes. Consumer Reports(r) is published by Consumers Union, an expert, independent nonprofit organization whose mission is to work for a fair, just, and safe marketplace for all consumers and to empower consumers to protect themselves. To achieve this mission, they test, inform, and protect. To maintain their independence and impartiality, CU accepts no outside advertising, no free test samples, and has no agenda other than the interests of consumers. CU supports itself through the sale of their information products and services, individual contributions, and a few noncommercial grants.
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