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Is it finally time for High Definition TV..or Digital TV (DTV) to make it into our homes? There have been a number of false starts, deadlines missed, wrangling over standards etc...BUT, last week we got this news out of Washington...in short it is being referred to the Powell Plan, for FCC Chairman Michael Powell: Cable Companies Commit to Speed Digital TV May 01, 2002 11:39 AM ET By Jeremy Pelofsky WASHINGTON (Reuters) - The top ten 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 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. CABLE COMMITS TO POWELL PLAN Cable operators like AT&T Broadband T.N and AOL Time Warner Inc. AOL.N said they would accept Powell's challenge to carry by Jan. 1, 2003, at no extra cost up to five digital channels, which 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. 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 T.N , AOL Time Warner Inc. AOL.N , Comcast Corp. CMCSK.O , Charter Communications CHTR.O , Cox Communications COX.N , Adelphia Communications ADLAE.O , Cablevision Systems CVC.N , Mediacom Communications MCCC.O , Insight Communications ICCI.O and CableOne all agreed to take 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. Already, two premium movie channels are broadcasting in high-definition, HBO and Showtime, while Viacom Inc.'s VIA.N CBS network broadcasts its primetime schedule in digital and Walt Disney Co.'s DIS.N ABC network plans to broadcast half of its primetime shows in digital this fall. END. If in fact this is the boost that Digital Broadcasting or HDTV or whatever you want to call it needed then there are going to be certain companies that should benefit. Sectors/niches could include cable suppliers, companies that participate in the satellite industry, set top box providers, transmitter/amplifier companies, certain electronics companies and so on. This will not be a world transforming event like railroads, television or the internet but it could provide a much needed boost to the telecomm industry in general. I don't have a figure yet on the total dollar cost of conversion once it is all in place but be assured it will be a hefty number once you include television sets, set top boxes and all the accompanying infrastructure that will be required. I will put some companies up here, you are welcome to do so as well, and all I ask is that we stick to the small cap arena. That arena is a helluva lot larger now than it was 2 years ago as many large and mid cap companies are now small cap depending on the market cap used. Here I would like to keep the price of the stock at 5.00 or less if possible....if not no big deal. Digital is coming at us from every direction...and Digital Broadcasting/HDTV may finally get off the ground. We may as well try and identify some of the potential winners. If there is enough interest/candidates (probably not as the mkts, except for today which will be forever known as Cisco Eruption Day, have been dead for a while now) I attached a portfolio and started it with WGNR but may not use it. As for the stocks I put up here I may or may not own them, short them, shoot them, swear at them, give them up for dead, pray for them, cheer or jeer them, wish I never mentioned them, wish I had a lot more of them, cry over them, cry over what they have done to me and my family or buy a second home with them. In other words just the standard stuff. | ||||||||||||
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