Cable Companies Commit to Speed Digital TV
By Jeremy Pelofsky
WASHINGTON (Reuters) - The top 10 U.S. cable operators committed on Wednesday to take steps to accelerate the transition to digital television, including carrying several high-definition digital channels by January 2003.
Federal Communications Commission Chairman Michael Powell last month set out a voluntary plan to give a push to the transition that has become mired in squabbling among broadcasters, cable providers and electronics manufacturers over what step should be taken first and by whom.
The cable industry is widely seen as a linchpin to the move to higher-quality, crisper digital television because so many Americans watch television via cable. However, consumers have been reticent to buy expensive equipment to receive digital, and available high-definition programming is limited.
The slow pace has caught the attention of some in Congress who are contemplating legislative moves to get the parties going. The move by the cable industry could serve to put the attention on programmers and electronics manufacturers.
"The cable industry's initiative, together with the voluntary actions of other industries as suggested by Chairman Powell, should provide an important boost to the DTV transition," Robert Sachs, president of the National Cable & Telecommunications Association, said in a letter to Powell.
"The success of the DTV transition depends upon the creation of compelling digital programming, the cooperation of the broadcast, cable, satellite and consumer electronics industries, and most importantly, consumer demand," he said.
The industry is hoping that the steps will push the broadcasters to air more digital programming, force consumer electronics manufacturers to sell digital-ready television sets and challenge satellite television providers for customers.
The commitment comes on the day the bulk of television stations were required to begin broadcasting in digital, however the FCC received 842 requests for a six-month extension and 530 have been granted so far.
CABLE COMMITS TO POWELL PLAN
Cable operators like AT&T Broadband and AOL Time Warner Inc. said they would accept Powell's challenge to carry by Jan. 1, 2003, at no extra cost up to five digital channels that offer significant amounts of high definition programming in the top 100 markets.
That could include networks, public television stations, cable channels or other value-added programming.
Tracking Powell's plan, the cable companies also agreed to begin ordering the necessary set-top boxes with digital connectors and deploying them to customers as soon as they are available from manufacturers, likely by the end of 2003.
"I am pleased that the cable companies have embraced my challenge with solid commitments and I look forward to similar strides by the other industries in the coming weeks," said Powell in a statement.
Additionally, the industry will embark on an advertising campaign to market digital television and other value-added programming that may complement services to encourage consumers to buy the new television sets and order the new service.
Sachs said AT&T Broadband, AOL Time Warner Inc., Comcast Corp., Charter Communications, Cox Communications, Adelphia Communications, Cablevision Systems, Mediacom Communications, Insight Communications and CableOne all agreed to take the several steps.
Powell's plan also called on the major television networks and premium movie channels to air half of their primetime schedules in digital by the fall season and consumer electronics makers to put digital tuners into some new sets starting in 2004.
"I am hopeful that these commitments will lead to results," said Sen. John McCain, and the ranking Republican on the Senate Commerce Committee which has jurisdiction over such issues. "If significant progress isn't made in the DTV transition, then I will introduce legislation that will not be voluntary." TELEVISION BROADCASTERS PART
Already, two premium movie channels are broadcasting in high-definition, HBO and Showtime, while Viacom Inc.'s CBS network broadcasts its primetime schedule in digital and Discovery Communications plans to launch a high-definition channel in June that offers nature, science and history shows.
Walt Disney Co.'s ABC network plans to broadcast half of its primetime shows in digital this fall. But part of the problem is few Americans have shelled out the thousands of dollars to buy television sets that will receive the higher-quality signals.
"We're pleased the cable industry is moving toward carriage of digital broadcast signals," said Edward Fritts, head of the National Association of Broadcasters. "We look forward to the day when cable operators carry all digital broadcast signals in their entirety."
Local affiliates in certain markets were supposed to begin broadcasting in digital on Wednesday though about 75 percent of the 1,300 commercial stations will not because of problems, ranging from unavailable equipment to financial difficulties. |
