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Technology Stocks : C-Cube

CUBE 36.52

+0.3%

Dec 12 9:30 AM EST

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To: John Rieman who wrote (30360)	3/6/1998 11:47:00 AM
From: DiViT	of 50808

Battle hots up for digital dominance... SIMON BEAVIS MEDIA BUSINESS EDITOR 03/05/98 The Guardian Page 021 (Copyright 1998) THE battle to convert TV viewers to digital television is set to erupt this autumn after confirmation that British Digital Broadcasting, the consortium owned by Granada and Carlton, will launch then in a direct head-to-head with BSkyB. BDB is expected to reveal that it has chosen four main manufacturers to make its set-top boxes - which convert the reception signal - and intends to have substantial numbers in the shops in the run-up to Christmas. The announcement will be the first concrete evidence that BDB intends to stick to its timetable for launching in the autumn with a package of up to 30 channels. But it also puts BDB in a direct battle with BSkyB for new subscribers. The satellite broadcaster - 40 per cent owned by Rupert Murdoch - has said it will launch digital satellite in June but will not start its main marketing drive until the important pre-Christmas period when it will be promoting its 150 channels. Cable TV companies are also thought to be planning to launch in the second half of the year, meaning that viewers eager to convert from analogue services will be able to choose between the three almost immediately. It is thought that Sony, Philips and Nokia will be producing set-top boxes for BDB. Pace Microtechnology, which mass produces satellite decoders, is also likely to be selected. BSkyB has signed up Amstrad, Panasonic and Grundig-Hyundai. Rivalry between the two digital broadcasters has recently intensified. BDB infuriated BSkyB when it chose to use a key piece of access software produced by Seca rather than software from the Murdoch-owned NDS. BSkyB even threatened legal action claiming that the choice of a rival system would render the two boxes incompatible and would confuse consumers. Both broadcasters are expecting to offer subsidies to bring the cost of the box down to a price of around pounds 199. Viewers who do not subscribe to pay-TV services, but wish to see digital programming from the BBC and the commercial TV companies could have to pay between pounds 400 and pounds 500 for the decoder. * The consumer magazine Which? warns today that early subscribers to digital TV could be landed with expensive technology which quickly becomes redundant.

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