Satellite providers to add AC3 sound. And they are going to make
set top box/DVD combos. David has been talking this for about 1 year.......................................
infoseek.com
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Satellite Services Preparing to Offer Ac-3 Audio in 1998
Communications Daily
Sun, Aug 18 1997
Echostar and Primestar plan to add programming with Dolby Digital AC-3 audio by first quarter of 1998, while DirecTV said it's continuing to weigh its AC-3 options. Move to add AC-3 will be timed to coincide with late-1998 digital TV set introductions with AC-3 capability and debut of combo satellite receivers with built-in DVD drives, companies said. Echostar plans integrated receiver/decoder (IRD)/DVD combo product by first quarter, Vp Engineering Mark Jackson said: "In adding a DVD player you use many of the same parts including the MPEG-2 decoder, power supply and chassis. The only thing different is you add the front end to get the signal from the satellite." Despite moving aggressively on AC-3, Primestar and Echostar concede that at start market may be limited to small audience that buys high-end products and premium movie channels. "But it will grow over time and our plans are to coincide with when we think we'll see a little bit of market growth, which is mid-1998," Jackson said. Viability of AC-3 in satellite arena is likely to hinge on whether DirecTV follows suit. While programmer has demonstrated ability to carry signal and is said to be considering dedicating 6 channels to AC-3, "the jury is still out," said executive familiar with DirecTV, who said decision will be based on such things as costs and amount of bandwidth needed. DirecTV spokesman said final decision on AC-3 hasn't been made and declined further comment. HBO, which has met several times with Dolby Labs, is said to be leading AC-3 charge on programming side, although HBO spokesman also declined comment. HBO is planning to offer some programming with AC-3 by first quarter, sources said. Meanwhile, U.S. Satellite Bcstg. Pres. Stanley Hubbard said there's "very good" chance his company will add AC-3 audio by early 1998, but will base decision on DirecTV's actions. Satellite services "all see that DVD raised the bar for them because the players are delivering {AC-3} movies and they don't want to look second-best," industry executive said. "They were trying to do better than VHS and here comes DVD and now they're not the best any more." Central issue remains how signal will be delivered to consumers. Satellite executives say that building AC-3 circuitry into IRD will be too expensive at start. Instead, Primestar will build Sony-Philips Differential Interface (SPDIF) on back of IRD to allow for connection to AC-3 receiver. Echostar said its 1998 receivers will have outputs to accommodate AC-3 technology. Among DSS suppliers, AC-3 plans seem far less sure. Toshiba is said to be readying 2nd-generation IRD with AC-3 compatibility. Thomson won't add technology before debut of 4th-generation IRD in late 1998, official said. Small installed base of pricey standalone AC-3 processors ($800-$1,200) also makes adding technology less appealing, industry sources said.
(Copyright 1997 by Warren Publishing, Inc.)
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