Best Buy CEO worried on economy, digital TV transition

LAS VEGAS--Asked about the state of the U.S. economy, Best Buy CEO Brad Anderson said on Tuesday that it is clearly a concern.

"People that are getting their first (home heating) oil bills at $3 a gallon," he said, even as the U.S. mortgage crisis continues to hang over the economy. "The share of mind that the 'r word' is getting in the media has us concerned," he said, alluding to but not uttering, the word recession.

But Anderson said it was the transition to digital television that posed the biggest threat to his industry, warning of the dangers if consumers find themselves having TVs that don't work once the broadcasters end their analog signals in February of 2009.

"We're very nervous about the potential risk," Anderson said. "I think the industry will be damaged if we as an industry don't handle this well."

At the Consumer Electroncis Show on Tuesday, CEA Chief Gary Shapiro asks retail executives, including the heads of Best Buy and Circuit City, for their views on the U.S. economy, the digital TV transition, and other issues.

(Credit: Ina Fried/CNET News.com)

His comments came as part of a panel discussion of several retail executives at the Consumer Electronics Show here.

Circuit City CEO Philip J. Schoonover, meanwhile, was most concerned with his own company's performance, which has lagged the industry.

"I'm not smiling," Schoonover said, after Anderson and other retail executives beamed at their own growth last year.

"We're trying to fix the plan while flying the plane," he said. "It proved to be more challenging than I think any of us estimated."

[mlinder69]

Huh?

"(home heating) $3/Gallon" he must have one of those gasoline furnaces. (LOL) I have not watched a TV show from broadcast or cable for the past 10 months at least! Movies and games are all I care about, I bought my HD 61" Samsung for the PS3 only!

[Amairgen]

DTv Transition

Anderson really shouldn't blame anyone but himself for his concerns. I've shopped at numerous Best Buy (and competitors) for the last year and a half looking for a digital to analog converter box. I've only found one in one store (a Best Buy) for $240. This compares to the $60 +/- estimated cost by the FCC and the CE industry. If the industry would have stocked some reasonably priced models for the last year, it wouldn't be a concern. But then, you wouldn't have bought that satellite system so you could get HDTV. And how about that HD radio we've all heard about -- see any mainline component models for sale? Not as long as sat radio is paying those big marketing dollars for shelf space.

[ekracinski]

WTF??

So you are complaining about the price of a box that you do not need yet? Please!

The prices will be down into the $60-ish range WHEN THEY ARE NEEDED and not before - and the prices will always be higher in a store than on the internet anyway.

[M3 Sweatt]

Retailers worried? Certainly this helps retail sales...

A majority of Americans today receive television via cable and satellite connections: 70% are connected to cable. I wonder how many people will be really be impacted by this change over? If anything, IMHO, it would see that retailers would like to see this transition be promoted (and ultimately occur) to help spur on new TV sales in a time of a possible recession. Same for the broadband suppliers, to move even a greater number of consumers to their digital services.