Three good reads on HDTV/Cable. [Archive] - SoundAndVision Magazine Forums

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June 16th, 2003, 15:41

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<CENTER>June 16, 2003</CENTER> 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
HDTV, the technology that once fueled the dreams of over-the-air broadcasters, has instead become a hot new commodity for the competing cable television industry. 
In a speech where he extolled growing consumer adoption of cableï¿½s broadband services and expanding viewership of cable networks, Robert Sachs, president and CEO of National Cable and Telecommunications Association (NCTA), said HDTV service has had a strong launch. His remarks were delivered at the opening of The National Show last week in Chicago, Ill. 
Sachs said as of June 1st, 78 of the top 100 DMAs ï¿½ including 18 of the top 20 ï¿½ were passed by at least one cable operator that provides a package of HDTV channels. In addition, he said that 34 markets beyond the top 100 are also being served by a cable operator offering HDTV, and a total of 55 million U.S. television households ï¿½ more than half ï¿½ are passed by a cable system that offers HDTV service, growth of nearly 50 percent since the first of the year. 
Sachs also said that, as of the end of the first quarter of this year (March 31), cable operators were serving more than 20 million digital cable, 12 million high-speed Internet, and 2.5 million cable telephone customers. 
ï¿½Broadband technology is cableï¿½s true growth engine,ï¿½ Sachs said. ï¿½As first quarter results confirm, our business is hitting on all cylinders. This is particularly impressive when you consider that cable faces strong competition in every business segment.ï¿½ 
Sachs said that the rollout of new cable digital services ï¿½ on display everywhere at The National Show ï¿½ signals optimism about the industryï¿½s future. He highlighted HDTV, VOD, subscription VOD, private video recorders, high-speed Internet access service and VOIP telephone service as products that will stimulate cableï¿½s growth. 
For more information visit <A href="http://www.ncta.com/" target=_blank>www.ncta.com</A>. 
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News Corp.ï¿½s Fox network ï¿½a longtime holdout in the HDTV warsï¿½ will test the HD waters this fall. Fox is planning to launch 720p HD services on its four HD regional Fox sports networks (FSN). The markets include Minnesota and Milwaukee; Raleigh, N.C. and Tennessee; Houston; San Antonio and Los Angeles. Time Warner is among the first MSO to reach an agreement to carry these HDTV feeds. 
Up to this point Fox has refused to carry HDTV, instead opting to provide standard definition signals in a 16:9 format. 
For more information visit <A href="http://www.newscorp.com/operations/books.html" target=_blank>www.newscorp.com</A> and <A href="http://www.fox.com/home.htm" target=_blank>www.fox.com</A>. 
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The adoption of HD television sets in the United States now stands at four percent, a new study claims. However, despite a recent surge of growth due to falling prices, the technology remains a luxury item for high-income earners, the researchers found. 
The new consumer study by Leichtman Research Group of Durham, N.H., found that current HDTV owners have an average household income of 73 percent above average, and those most likely to purchase an HDTV set in the next year have an average income 54 percent above average. The report is based on a survey of 1,250 randomly selected U.S. homes where cable television is available. 
DBS subscribers lead the pack in awareness and favorable views toward HDTV, outpacing their cable competitors. Over-the-air broadcasters were not even mentioned in the study. Of those surveyed, Leichtman found that nine percent of DBS subscribers in areas where cable TV is available currently own an HD-capable set, compared to four percent of cable subs. Another 13 percent of DBS customers said they are "very familiar" with high definition, while only eight percent of cable viewers could say the same. 
ï¿½With over 275 million television sets in US households, it will be many years before HDTV sets become the norm,ï¿½ said Bruce Leichtman, president and principal analyst for Leichtman Research Group. ï¿½Yet with prices decreasing, purchasing an HDTV set is becoming a default for the high-end TV buyer rather than an active decision to get an HDTV set. This will result in the sale of millions of HDTV sets in the next few years.ï¿½ 
Leichtman forecasted that the total number of HDTV-capable households in the US will grow to 33 million by the end of 2007. 
For more information visit <A href="http://www.leichtmanresearch.com/" target=_blank>www.leichtmanresearch.com</A>.