[opendtv] Re: White paper from CEA

  • From: Craig Birkmaier <craig@xxxxxxxxx>
  • To: opendtv@xxxxxxxxxxxxx
  • Date: Mon, 24 Oct 2005 12:03:26 -0400

At 4:46 PM -0700 10/21/05, Richard Hollandsworth wrote:
>Analog shutdown will affect cable systems as well as on-the-air, as 
>was discussed in this thread:
>http://hdtv.forsandiego.com/messages/2/3749.html#POST19781
>Analog channel sources will soon dry up as all of the SAT, CATV and 
>OTA systems go ALL DIGITAL.
>
>Most of the cable systems have announced plans for simulcasting 
>analog channels on their digital tier, in preparation for an ALL 
>DIGITAL cable system.

Not exactly. Remember, cable offers TWO analog tiers:

Basic/Lifeline
Extended Basic

The Basic tier is primarily the OTA analog channels that are required 
for must carry/retransmission consent. With the Cox Cable system in 
Gainesville the basic tier also includes TBS and a few shopping 
channels.

What is likely to move to digital soon are the extended basic 
channels, which are not available OTA, but cost a bunch of money in 
subscriber fees that have been extorted through retransmission 
consent agreements. In Gainesville most of the lower 500 MHz of 
spectrum is still analog, except for the upstream channels that at 
the low end of the cable spectrum. We get about 70 analog channels, 
of which about 20 are the core basic/lifeline service. That means 
that the rest - about 300 MHz of spectrum could be converted to 
digital, enabling hundreds of new digital channels and/or on demand 
services.

What I expect is that most cable systems will continue to offer the 
basic tier channels in analog, either at a very low price as they do 
today, or for free, to get people into their systems. Since all 
legacy sets can tune to these analog channels there will be no need 
to provision a STB unless the subscriber decides to pay more to get 
more content. Since they already go past most of the homes that still 
rely on OTA service, the cost to give away 20 analog channels will be 
very low, with the potential to increase revenues as some of these 
former OTA viewers  become paying subscribers.

Bottom line, analog television is not likely to go away in this 
decade...it's just moving.

Regards
Craig

P.S. A digital receiver is no longer adequate. PVR functionality is 
becoming a standard feature for subscriber based systems. I expect it 
will be standard on DVB-T STBs within a year.
 
 
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