Cablecos Might Get Big HD Surge in '09

In the largely marketing and sales race to offer the most high-definition (HD) channels and programming with TV services, will cablecos emerge after the digital TV transition in February with a huge lead over telco TV providers?

When you consider that moving from analog to digital technologies makes much better use of available spectrum for delivery of HD programming, the answer could be “yes.”

But why a cable edge? Because cablecos have long been providing content using inefficient analog technologies, while newer telco TV providers, with largely if not entirely digital systems have little or no analog inventory to covert next year.

Using all-digital technologies enable operators to more effectively and efficiently provide HD content, and much more of it.

In a recent presentation, Cablevision Systems Corp. (CVC) COO Tom Rutledge said the move to all digital will enable it to offer substantially more HD channels (and thus programming) that it can effectively deploy now, and while conserving precious resources.

That’s good news for those operators engaged in a seemingly mind-numbing, high-profile marketing battle over who offers the most HD channels for home viewing. Some suggest it’s not the number of channels offered in HD but which channels are offered in HD.

Nonetheless, with HD TVs of all sizes and diminishing prices flying off the shelves for the holidays and beyond, HD content can’t be dismissed as a minimal factor in consumer buying and video viewing behavior.

Fighting an uphill battle against long entrenched and large cablecos already serving broad areas, some telcos have turned to satellite TV resale to bring HD programming to areas that they have yet – or don’t plan to – serve with landline networks.

That’s perhaps why Verizon Communications Inc. (VZ), Qwest Communications International Inc. (Q) and AT&T Inc. (T) starting February 1, will resell DIRECTV Group Inc. (DTV) service, in some cases as part of multiservice residential broadband bundles.

So few would be surprised to see a re-escalation of the HD TV, radio and direct-mail marketing wars come late February.

The customer may very well win out..

Stay tuned.

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