[opendtv] News: High-Definition TV/ Technological Transition Or New Market?
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: OpenDTV Mail List <opendtv@xxxxxxxxxxxxx>
- Date: Fri, 21 Jan 2005 06:51:48 -0500
High-Definition TV/ Technological Transition Or New Market?
January 21, 2005 12:00am
Source: Access Intelligence, LLC. All rights reserved.
Inside Digital TV : by Jacques Bajon and Stephanie Villaret, IDATE
Euro 1080, Europe's pioneer high-definition TV=20
service, has been operational since January 2004,=20
but the "real" launch of HDTV on the continent=20
hasn't happened yet. Late 2005-early 2006 will be=20
the stage for the premiere launches of HDTV=20
packages via satellite in Europe. This=20
development marks the completion of debates over=20
HDTV that began 20 years ago as well as being the=20
end of Europe's trailing behind the United States=20
and Japan in this area.
The question of standards remains inextricably=20
tied to the HD issue. The chosen paths will have=20
a significant impact on the shape of the European=20
industry, keeping in mind that, to date, there is=20
no consensus. The European Broadcasting Union=20
(EBU), for instance, has stated its support of=20
the 720p50 standard over 1080 formats (interlaced=20
or progressive). Nevertheless, the coexistence of=20
several HD formats appears the most likely=20
outcome in Europe, as it is worldwide. In terms=20
of screen resolution, it is the XGA (1024 X 768)=20
screen that emerges as the benchmark for the=20
minimum in HD compatibility.
High definition profoundly alters the conditions=20
required to create and distribute TV services. A=20
HD service needs to rely on HD-native programmes=20
(HD production and post-production), which=20
require greater broadcasting capacities (four to=20
five times more in MPEG 2). And to view HD=20
services, users need to be equipped with new=20
HD-ready screens. HD reception is possible either=20
through integrated HD television sets (equipped=20
with a tuner) or with a HD monitor connected to a=20
high-definition enabled decoder. CRT, plasma, LCD=20
or video and rear projection technologies can=20
handle HD.
Another future possibility is viewing HD content=20
"per event" or outside the regular programming=20
grid, either thanks to physical platforms like HD=20
DVD, on-demand services (VOD, PPV) or specialty=20
convenience services (PVR). These new HDTV=20
services could, therefore, heighten a programme's=20
exposure and help convince consumers to pay extra=20
to acquire HDTV sets.
Service Deployment: Europe Lags Behind
The first research programmes on analogue HDTV=20
standards began in Japan in the late Sixties, and=20
it continued through the Seventies and Eighties.=20
It was in 1989 that the first HD trials were run.=20
Currently, some 2 million Japanese households=20
receive digital HD programmes offered by around a=20
dozen channels. In the United States, the=20
country's broadcast networks launched their=20
pioneer HD services on the terrestrial network in=20
1998. Parallel to that, the head-on competition=20
between cable and satellite pay-TV operators=20
helped pave the transition to HDTV for cable and=20
satellite channels, and the sphere of=20
multichannel subscription platforms. As a result,=20
between 3 percent and 4 percent of US TV=20
households are now active HDTV consumers.
HDTV currently is available via digital=20
terrestrial, cable and satellite networks. In=20
countries where HDTV services have been launched,=20
DTT is one of the existing HD platforms. So far,=20
general-interest channels have confined their=20
involvement in HD programming to only meeting the=20
obligations imposed by regulation. In Europe,=20
after the failure of D2 MAC-HD MAC, announced=20
launches of HDTV services have been multiplying.=20
Among the most recent are the Noos and TPS=20
platforms in France, BSkyB in the UK and Premiere=20
in Germany. Commercial launches have been=20
scheduled for late 2005 or early 2006.
The Stakes For Industry Players
On the production side of things, the additional=20
cost that HD represents is not crippling; rather,=20
it is the level of investment made in programmes=20
that will be decisive. The content industry=20
responds to demand, and it is the TV channels=20
that will need to trigger the financing process.=20
Only an evolution toward sharing rights will=20
provide the incentive for producers to supply=20
further investments in the programmes. Without=20
generating any additional revenues, HD services=20
could remain a cost centre for general-interest=20
channel operators. Proof of this can be found in=20
the fact that a number of these channels have=20
confined their HD operations to only the=20
commitments imposed by recent DTT regulations. On=20
the flip side, however, HD could help boost TV's=20
image as a medium along with helping to secure=20
general-interest channels' mass audience appeal.
TV platform operators also are involved in HDTV,=20
and a great many of them offer HDTV services in=20
countries where the technology is only just=20
beginning deployment. Along with thematic=20
channels, they are the most proactive players on=20
these markets along with being the chief drivers=20
behind the current debates in Europe. For them,=20
HDTV can be perceived as an element of=20
distinction that will help cement viewer loyalty=20
and attract new subscribers in addition to being=20
a growth relay that will allow them to increase=20
their ARPU in a pay-TV market where growth is=20
tending to stagnate. Furthermore, from a=20
service-deployment standpoint, the choice of=20
platform for broadcasting HDTV services is by no=20
means neutral.
The fierce competition that exists between=20
reception-terminal manufacturers and the=20
technologies (plasma, LCD, DLP) is expected to=20
lead to the mass production of HDTV sets. This=20
will lead to a drastic drop in per-unit=20
production costs and, therefore, in retail=20
prices. If this trend does occur, growth of the=20
base of HD-ready sets installed in homes will be=20
key to helping the HD market take off. As was the=20
transition from black-and-white to colour sets,=20
HDTV involves a fundamental change for consumers:=20
Buying a new TV set.
HDTV's European Prospects
Although it represents a new phase, HDTV=20
services will not be launching from scratch in=20
Europe. The entire TV production process already=20
is digital, and Europe currently is home to HD=20
production, even if the programmes are not=20
available to viewers in HD format. Furthermore,=20
popular events (sports, in particular)=20
increasingly are being shot systematically in HD,=20
and a host of broadcasting tests already have=20
been conducted.
The rate at which HDTV sets make their way into=20
viewers' homes will be a key barometer for=20
measuring HDTV's development potential in Europe.=20
Its evolution will depend chiefly on a drop in=20
the price of the equipment itself, coupled with=20
several other variables: the rate of replacement=20
on the flat-screen market with HD-ready sets as a=20
standard, the volume of available HD DVDs and=20
growth of the HDTV services offering.
On the supply side of things, HDTV offers made=20
available through pay-TV packages will be the=20
first line of deployment for services in Europe.=20
Here, satellite is expected to be among the=20
pioneers. The second stage will be steered by the=20
market's expansion toward Free To Air TV. Faced=20
with the limited possibilities in this area due=20
to the definition of DTT frequency plans in=20
Europe, it seems likely that it will not be until=20
the first analogue services are switched off=20
(starting in 2010) that the frequencies needed=20
for HD services will become available.
HDTV likely will lead to the emergence of a new=20
TV market in Europe, accessible mainly via pay-TV=20
services. HD as a technological transition=20
currently isn't an option, at least not in the=20
medium term, but if such a transition is to take=20
place, it most likely will begin in the=20
TV-production sector before it has an impact on=20
broadcasting.
Contact Marshall Shrago, IDATE, m.shrago@xxxxxxxxx
[Copyright 2005 Access Intelligence, LLC. All rights reserved.]
<<Inside Digital TV -- 01/19/05>>
<< Copyright =A92005 Access Intelligence, LLC. All rights reserved. >>
----------------------------------------------------------------------
You can UNSUBSCRIBE from the OpenDTV list in two ways:
- Using the UNSUBSCRIBE command in your user configuration settings at
FreeLists.org
- By sending a message to: opendtv-request@xxxxxxxxxxxxx with the word
unsubscribe in the subject line.
Other related posts:
- » [opendtv] News: High-Definition TV/ Technological Transition Or New Market?
