KEY POINTS:
Digital television will go high definition next month with the launch of Freeview HD, but a dearth of programmes delivered in the high-quality format will likely limit early uptake.
Almost a year after launching satellite broadcasts of free-to-air digital TV, Freeview is using the nationwide network of transmission
towers run by state-owned broadcasting infrastructure operator Kordia to deliver a second service that can be accessed by homes equipped with UHF aerials.
Freeview is already broadcasting a test channel in high-definition, but viewers will have to purchase an HD-enabled set-top box to access it and other HD content that will be broadcast.
The service will simply be branded Freeview HD.
Just what TV content will be delivered in the format, which offers better picture quality for people with high-definition flat screen television sets, is unclear.
An estimated 300,000 flat-screen TVs capable of displaying high-definition content are believed to be in the market, over 100,000 of which were bought in the second half of last year.
TV3 is expected to unveil its high-definition programme line-up next week, while TVNZ has backed away from aggressive plans to show HD in primetime TV slots as it concentrates on upgrading its systems and launching its new digital channel - TVNZ7, which is exclusive to Freeview.
The first high-definition programming from TVNZ is likely to be coverage of the Beijing Olympic Games, which will be broadcast in HD during August and September.
"That's set in concrete as is the use of TVNZ's Sport Extra channel to run a second channel for the Olympics," said Freeview general manager Steve Browning.
TVNZ chief executive Rick Ellis said last year that up to 80 per cent of primetime content on TV2 would be available in high-definition while as much as 50 per cent of TV1 footage would be broadcast in the format.
"We've had second thoughts about that. We will do it properly which means we may travel more slowly," said TVNZ spokeswoman Megan Richards.
"The rest of the company has to have buy-in. It's going to be a longer proposition than originally we thought."
"It's an infrastructure issue, it's not about getting hold of material," added Browning.
TVNZ is undertaking a major technology upgrade budgeted at up to $40 million to prepare for the high-definition era, though Richards said employees were still "trundling around with tapes" ahead of a new digital storage system being introduced.
Only one Freeview-licensed set-top box will be available when the service officially launches early next month from manufacturer Zinwell. It will cost around $500, $200 more than the two official receivers that hit the market with the launch of the satellite service last May. Over 78,000 homes now access free-to-air satellite broadcasts.
Browning said a number of other set-top boxes were being tested for certification.
While there were initial plans to launch a personal video recorder with the high-definition service, it is now unlikely to arrive before September.
Integrated digital TV tuners, which are built into TV sets, removing the need to buy a set-top box, are expected to debut later this year.
"All four of the top TV makers are working on it," said Browning.
UHF aerials grace tens of thousands of New Zealand homes as they are used to access Sky's TV channels. Internal UHF aerials that sit on top of the TV set sell for as little as $30.
But the unofficial market for set-top boxes which flourished in the wake of the Freeview satellite launch last year is unlikely to be as active this time around.
Peter Escher of Auckland-based set-top box importer Satlink, said the use of the Mpeg4 video and AAC audio format made it harder to compete with Zinwell.
"Freeview has set the technical standards quite high, which is a good thing, but it has made it more difficult for us to get supply. The last thing I want is to import container loads of boxes that end up not working," he said.
Nevertheless Escher, who said demand for satellite receivers had slowed significantly since Christmas, expects to have a high-definition set-top box with Freeview electronic programming guide available early next month for around $390.
HIGH LIFE
* High-definition Freeview broadcasts start next month but only one official DTT (digital terrestrial television) receiver will be on the market priced at around $500.
* A personal video recorder for digitally recording programmes and flat-screen TVs with built-in digital tuners is expected later in the year.
* TVNZ will launch HD broadcasting with the Beijing Olympic Games but primetime programmes delivered in HD are further away than originally thought.
* Many homes are already equipped with the UHF aerial needed to receive Freeview, but internal aerials can be bought for as little as $30.