Nick
03-14-06, 04:27 AM
Digital TV Deadline Creates Windfall
The deadline requiring conversion from analog to digital TV broadcasting will be
a bonus for U.S. pay TV providers, according to a new report from technology
research firm Strategy Analytics (SA). The research, "Digital TV in the U.S.: 2009
Deadline Creates Windfall for Cable and Competitors," predicts that the February
2009 cut-off date will force millions of households served only by free analog
broadcasts to finally sign up for multichannel service from cable, satellite or
telecom companies.
According to the report, the number of U.S. households using some form of digital
TV will grow from 57 million today to 77 million by the end of 2008, just two months
before the new deadline. SA says cable operators are likely to benefit the most from
the transition because the cut-off date will increase adoption of digital cable.
"Having a firm DTV deadline in place will sharply accelerate the industry's migration
to an all-digital platform," says James Penhune of Strategy Analytics. "Penetration
of digital service will grow from less than half of all cable customers today to nearly
three-quarters by 2010."
The deadline also will boost adoption of satellite and telco-delivered TV, but not
on the same scale as cable, which will draw upon its huge base of analog customers.
To maximize this opportunity, the firm says, cable's strategy and pricing structure
for digital cable should target customers who have not previously used pay TV. This
means digital service pricing at much lower rates than those available today, as well
as bundled service package offerings of TV, broadband internet access and internet
telephony.
www.SkyRetailer.com - used with permission
The deadline requiring conversion from analog to digital TV broadcasting will be
a bonus for U.S. pay TV providers, according to a new report from technology
research firm Strategy Analytics (SA). The research, "Digital TV in the U.S.: 2009
Deadline Creates Windfall for Cable and Competitors," predicts that the February
2009 cut-off date will force millions of households served only by free analog
broadcasts to finally sign up for multichannel service from cable, satellite or
telecom companies.
According to the report, the number of U.S. households using some form of digital
TV will grow from 57 million today to 77 million by the end of 2008, just two months
before the new deadline. SA says cable operators are likely to benefit the most from
the transition because the cut-off date will increase adoption of digital cable.
"Having a firm DTV deadline in place will sharply accelerate the industry's migration
to an all-digital platform," says James Penhune of Strategy Analytics. "Penetration
of digital service will grow from less than half of all cable customers today to nearly
three-quarters by 2010."
The deadline also will boost adoption of satellite and telco-delivered TV, but not
on the same scale as cable, which will draw upon its huge base of analog customers.
To maximize this opportunity, the firm says, cable's strategy and pricing structure
for digital cable should target customers who have not previously used pay TV. This
means digital service pricing at much lower rates than those available today, as well
as bundled service package offerings of TV, broadband internet access and internet
telephony.
www.SkyRetailer.com - used with permission