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Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: JPM who wrote (25378)	11/17/1997 4:40:00 PM
From: John Rieman	Read Replies (1) \| Respond to of 50808

More HDTV............................ usatoday.com 11/17/97- Updated 12:22 PM ET Lingering doubts about HDTV images Cable systems and programmers love digital television. In fact, some systems are already rolling out a form of it to their customers. It's high-definition pictures they're not too sure about. Like their broadcast network counterparts, cable programmers so far seem reluctant to invest in the equipment necessary to shoot in HDTV until a sufficient number of households have sets capable of displaying high-definition broadcasts. Their lackluster response is mirrored by cable systems, which seem more interested in splitting their digital signals and offering more channels than in offering crystal-clear pictures. "The possibility of putting more product out there is more important than how it looks picture-wise and sounds audio-wise," says Ray Richmond, a TV reporter at Daily Variety. The lack of enthusiasm can also be traced to demos of the product, Richmond says. "For the most part, not everyone thinks the picture is better. (HDTV) is supposed to be the greatest innovation ever, but it will take more of a sales job. Some think it's weird or a little too clear. Just because there's better picture quality doesn't mean folks will gravitate toward it." Rollout of special equipment needed to receive and send digital cable signals should reach over half the nation within the next four years. As of midsummer, fewer than 10,000 set-top boxes capable of receiving such signals were in commercial use or being used in field trials, although that's changing rapidly. Equipment manufacturers estimate that 25% of the overall cable field is now digital-capable. That means 16 million subscribers in major markets have at least the potential of receiving digital channels. Analysts predict they'll be interested. Cable television expects 70% to 80% of customers able to receive the new digital services will buy them. And, by 2001, up to 65% of all cable homes will be offered digital cable services, analysts say. The decision to offer HDTV vs. additional cable channels, however, is "a very hot issue right now and a very confusing one for the entire TV industry," says Craig Leddy, editor of Cablevision, a trade magazine. "Usually the way the cable industry works is everyone waits for the big guys to go out there and prove that the technology works and take the arrows in the back. And then the smaller guys follow suit," he says. "That's what's going on a little bit." Tele-Communications Inc. (TCI), with its extensive holdings in cable systems and stakes in programming services, is taking the first shots. The company is testing expanded digital delivery in Hartford, Conn.; Fremont, Calif.; and Arlington Heights, Ill. TCI has committed to rolling out digital capabilities to systems covering more than 75% of its 14.2 million customer homes by year's end. The cable industry has participated in the development of standards for high-definition TV since 1987. Cable Labs, the industry's research and development consortium, conducted cable-based testing as early as 1988. However, the long-sought advanced digital television standards, adopted by the Federal Communications Commission last May 9 after years of wrangling, are more specific to broadcast than to cable, whose transmitting standards differ from over-the-air networks. Despite some reservations, the National Cable Television Association endorsed HDTV in September, although no promises were made about when, where or how much HDTV programming would be available on cable. Several cable programmers, however, have made the leap and promise to offer shows in the high-definition format. Home Box Office, owned by Time Warner, has said it will offer East and West Coast HDTV feeds of its main programming service at some point in 1998. Theatrical and HBO-produced films - more than 70% of HBO's schedule - will be offered in high-definition. HBO's other original programming will be adapted gradually as HDTV-capable households grow, according to the company. Turner Broadcasting, another Time Warner company, will offer high-definition movies and nature documentaries. By Bruce Haring, USA TODAY