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To: VidiVici who wrote (34938)8/4/1998 8:36:00 PM
From: John Rieman  Read Replies (2) | Respond to of 50808
 
Open Standard boxes needed before consumers buy-in..................

City: Decoder war may damage launch of digital TV
The Daily Telegraph London

A CONSUMER backlash against warring digital TV rivals BSkyB and Ondigital was predicted yesterday by industry watchers.

Sky, which launches 200 digital satellite channels on October 1, and Ondigital, owned by ITV groups Carlton and Granada, are using different set-top decoder boxes. Adaptors will not be available until next year.

TBS Consultants, a media and telecoms consultancy, said: "The slightest hint of instability, box wars or equipment obsolescence will severely retard the take-up of digital television services."

TBS said in a report, "Avoiding a UK TV disaster", that consumers with memories of previous platform wars such as Sky v BSB over analogue satellite TV and VHS v Betamax in VCRs will be wary. TBS director Dermot Nolan said: "The whole market is now confused. I see the potential for a digital disaster."

A Consumers' Association spokesman said: "We are advising people not to buy yet or if you do to be aware that the equipment you buy could quickly be obsolete. There's a lot of confusion out there and we want to make sure that consumers are not ripped off."

A spokesman for TV maker Philips said: "Our worries are that the two of them, if they are not careful, will generate so much confusion that the consumer will sit back and buy nothing." Philips would prefer viewers to have a uniform platform and be able to choose programmes from either broadcaster.

These views contrast with those of stockbroking analysts, who expect digital to accelerate growth of pay TV homes from 6m today to 11m by 2003. Sky also believes its free dish installation offer and exclusive channels has eradicated any confusion. Sky and Ondigital have added to the concern this week by announcing deals with TV makers to produce integrated digital TVs which include their own decoder technology.

Adaptors will be available for these sets next year. But the plans are being examined by the Independent Television Commission, which requires broadcasters not to favour TVs that include proprietary technology over open standards sets.

(Copyright 1998 (c) The Telegraph plc, London)