Unity Motion Launches First 24-Hour HDTV Satellite Broadcast; Digital TV Station Rollout Begins November 1998

By Dale Cripps · 1998

Mentioned: Kim Gamel, Dale Cripps, Samantha de la Vega

Summary

Unity Motion began 24-hour HDTV satellite broadcasting on September 26, 1998, marking the first around-the-clock high-definition programming available across the United States. The launch, alongside a November 1998 digital broadcast rollout covering major markets, was seen as a critical step in generating consumer momentum for HDTV adoption.

CBS To Broadcast NLF

&

First In The World For 24 Hour Day HDTV Satellite Broadcast

"Our mission is to make HDTV a reality in the U.S."

September 24, 1998

Like with the launch of color television in 1951, Unity Motion now makes entertainment history as it begins 24-hour HDTV broadcasting, Saturday, Sept. 26, 1998. This marks the first around-the-clock high definition programming available throughout the United States and should end the problem of demonstration programming for retail marketers as HDTV moves into the commercial phase.

Unity will air HD-1, its general entertainment channel. HD-1 features movies, sports, travel, children's programs, animation, art, music, and special features. By the end of 1998, Unity will transmit two additional HD channels, one each for movies and sports. To meet their programming commitment, Unity Motion will spend $250 million on movies alone through the year 2000.

"We're buying from film distributors, movie studios and independent filmmakers,'' said Kim Gamel, director of communications." Now that we're broadcasting 24 hours a day, seven days a week, we welcome the opportunity to work with anyone interested in bringing quality HDTV shows to North America."

"Our mission is to make HDTV a reality in the U.S. in a way that makes winners of consumers, high end home theater dealers, broadcasters, manufacturers and programmers," said Gamel. "This broadcast launch is one of many steps we will take toward achieving that goal."

The first feature to be shown is "Austin Powers."

Unity Motion

Vol 13, No 1
FCC

The HDTV Newsletter (ISSN: 0892-5771) is published 10 times a year by

Advanced Television Publishing

753 East Fall Creek Road

Alsea, Oregon USA 97324-9504.

Phone (541) 487-4186

Fax (541) 487-4187

Email: [email protected]

WWW: hdtv/hdtvnews.com

Publisher and Editor:

Dale E. Cripps

Contributer:

Samantha de la Vega

Copyright 1997 by Advanced Television Publishing. All rights reserved. For address changes, send current and new address to ATP at the above address. Subscription rate $387 (US, Canada, Mexico), $427 overseas.

Federal copyright law (17 USC 504) makes it illegal, punishable with fines up to $10,000, to make a copy of this publication or any portion of its content, by any means, without our written permission. For additional subscriptions, reprints, or reprint permission, please contact ATP

List of Stations that will

have digital broadcasting beginning

November 1, 1998.

New York, WCBS-TV

Los Angeles, KABC-TV, KCBS-TV, KTLA-TV and KNBC-TV

Philadelphia, WPVI-TV, KYW-TV, WTXF-TV and WCAU-TV

San Francisco, KGO-TV, KPIX-TV, KTVU-TV and KRON-TV

Boston, WCVB-TV and WMUR-TV (Manchester, NH)

Washington, WJLA-TV, WUSA-TV, WETA-TV and WRC-TV

Dallas, WFAA-TV, KDFW-TV and KXAS-TV

Detroit, WXYZ-TV and WJBK-TV

Atlanta, WSB-TV and WXIA-TV.

Houston, KHOU- TV

Seattle, KOMO-TV KCTS-TV and KING-TV

Miami, WLRN-TV

Portland, OR, KOPB- TV

Indianapolis, IN, WTHR-TV

Charlotte, NC,WBTV-TV

Raleigh, NC, WRAL-TV

Cincinnati, OH, WLWT-TV

Milwaukee, WMVS-TV

Columbus, OH, WBNS-TV

Harrisburg, PA, WITF-TV

Honolulu, KITV-TV

Madison, WI, WKOW.

1 800 999-HDTV

Vol 13, No 1

_Without HDTV there is less to be said in favor of DTVat least that which is delivered terrestrially. If with the
coming of DTV we will only be getting standard definition, what's the point? A good NTSC or PAL receiver
today with a cable or satellite feed is fairly compelling and a very cheap thrill. DTV is still a one-way system when delivered by air. Any upstream is limited to the bandwidth available from outside medias, such as telephone or cable. If that bandwidth is available already in the home for video, why bother with adjusting the antenna for every channel click?

US Broadcasters understand this because they require an audience for digital television and plan to use HDTV as the bait. In other words, HD will serve the purpose of motivating consumer interest in the marketplace. Perhaps, after becoming interested in DTV, consumers will reconsider the price for high performance and opt for lower performing systems with lower price points. However, in order to generate the momentum it takes to make any such transition and move briskly beyond the difficult beginning, inertia must be replaced by a vital interest so HD will penetrate enough of the population to be a successeven if it ends up a niche market, which many seasoned experts conclude it will be.

Another factor for broadcasters to consider is competition. It is not yet formidable but it soon may be. Unity Motion, a new example, has upped its stakes with both sports programming and movies-all slated to be delivered in high definition. Unity has 200 hours of programming and is still not a viable business, but that can change as subscribers mount.

Unity has a view that many have adopted of late, which may bring them all to harm. Of course, this publication is unabashedly bias in that our name suggests we faove high-definition, though we tolerate . Its officials believe that 480p is the right choice for the consumer who is thinking of buying a display. As a result of industry pressure, they have decided to broadcast in 1080i or 720p even though they are not overly supportive of these two formats. With their willingness to pay but $500 per minute for original programming, they claim to need only a 100,000 or so subs to break even.

Unity may or may not have the strength to be a major player, but with ever-stronger partners merging into its banquet, it is likely to grow into a key merger candidate. HBO, and now Hubbard's USSB, have decided to launch HDTV services as well. Existing dish owners will each need to buy an additional dish, but this is of little consequence to those who really want and can afford HDTV. Primestar and Echostar have plans for HDTV as well and some cable companies think it may be a way to recover business lost to satellite services.

So, before the bell sounds, government policies must be fully formed allowing us to have competing channels from space and ground that will serve HDTV signals to all parts of the nation. Will this lead the way to a new golden era in broadcasting or will broadcasters serving up tasteless Clinton Jokes on the Jay Leno Show mean more to the American public in HDTV than gold? It is unlikely that HDTV will ever be popular among the general public under the best of conditions. The world is stratified in technology and taste more so than ever. Robert Wright, president of NBC said in a recent Washington, DC conference that television is now forever segmented and networks will need multiple outlets to remain a viable force. While it is tempting to think of oneself as a broadcaster, the truth of the matter is that everyone is becoming a narrow caster. Understand whichever segment you wish to serve, serve it well, and leave the rest to the other segments. The day of one community established by the influence of three major networks is over and while there may be a nostalgic feeling for the good old days, they don't exist in the future. The Internet and the computer exist in the future as does the television set. While they may use some parts of each other to enhance their respective franchises, they are forever kept from becoming one if for no other reason than they do not have common roots. TV segments are distinctly different from Internet segments, though they cross over at times as guests often do.

I have been rooting for HDTV for 12 years because I believe it will contribute to the betterment of society. Media is clearly a primary means for cultivating people and with the coming of HD, quality programming can be spurred to present a new and more attractive era. As has oft been stated, HD programming should include the arts, nature, and sports shows that are designed to emerse the viewer, inviting the viewer into new worlds formerly unattainable. The viewing experience will be transformed, and with it culture.

With HDTV finally in the dawning, I can now begun to step aside and allow others to contribute and report more on the transition. Samantha de la Vega, who has been writing articles for the Newsletter, is taking on more responsibility and I will continue on in the capacity of publisher and advisor. Samantha's interest in the evolution of HDTV is refreshing and her energy can only be a welcome addition to the ranks working that are hard for its launch.

Dale Cripps

Vol 13, No 1

The Evolution of HDTVA Historical Overview

by Samantha de la Vega

In the last couple of years the HDTV battle has reached a crossroads. Issues including cost, video formats, TV/PC convergence, the chicken and egg standoff between broadcasters and manufacturers, tower erecting problems, and roll out time frame, are primary concerns for those involved in this transition.

According to actions by major players in the television industry, it seems that digital and HDTV implementation will be successful though maybe not as quickly as some might hope. Surprisingly, despite the unsettled status of the aforementioned issues, we are now nearing the fall of 1998, and consumer electronics manufacturers are producing HDTV product lines scheduled for distribution around this time. In addition, Matsushita Electric Industrial Co., addressing the issue of programming, is talking with Hollywood execs about co-producting HDTV shows to air along with its primary distribution of HD sets.

There appears to be general acceptance that roll out will take longer than originally expected and the Federal Communications Commission (FCC) appears to be listening to reason. It is logical that broadcasters voice concern about, among other things, tower-erecting barriers that will stall implementation of HDTV must-carry. This and other issues will have to be addressed more thoroughly before HDTV's true colors successfully shine through.

The public, on the other hand, waits readily for HDTV, still protected from the knowledge of what is ahead. The average American family will not be able to afford early HD sets. Some, however, may be willing to dish out additional cash for decoder boxes that will enable them to continue using their current NTSC sets while viewing new digital and HD programming via satellite. The problem here is that formatting for these boxes is still not standardized because the ATSC standard for video formats was not adopted by the FCC, nor has there been a standard set for the 1394 firewire which will serve as a connector to certain set top boxes and other equipment such as VCRs. Additionally, HDTV transmissions will be overkill for those televisions which are not equipped to receive the HD picture.

Also vieing for position in the race for the digital transition, are those in the computer industry that are pushing for PC/Television convergence. Interactive PC/Television and educational programming are hot topics for these folks. The Consumer Electronics Manufacturers Association (CEMA) predicts in its January issue of Sales and Forecasts, that with the exception of Set-top Internet Access Devices, TV/PC combinations will reach a high of $325,000,000 worth of sales in 1998, with an average unit price of $2,600. That means unit sales of 125,000, which is more than double what they predicted for 1997.

Toward the end of 1997, more than 40 representatives of the TV, PC and associated industries got together in Indianapolis to attempt to develop a cross-industry standard for the interface between large-screen televisions and personal computers. Then in January, on another front, a successful transmission was made of digital television (DTV) programming to a personal computer. The test was conducted by WETA, Washington, D.C., and Intel Corporation to study the delivery of digital television, with added data such as interactive educational materials, to PCs.

WETA, however, is also one of six public television stations committed to the early adoption of DTV. In July of 1996, WETA received authorization from the FCC to broadcast DTV signals on an experimental station, Channel 34. WETA has also produced programs in high definition for national broadcast on PBS including three programs focusing on works of art.

Roll Out: Where Do We Go From Here?

To see where the industry stands in the digital transition, we have only to look at the directions its players are taking. Small stations are laboring to erect towers to carry the new signals, and creating facilities designed to handle HD production. Consider Seattle's KCTS TV9, recently partnered with American Production Services (APS) on the joint development of a new digital high-definition post-production facility in Seattle. Another is Hawaii's KITV, which materialized its digital interests last year when it erected the state's first HD-capable facility.

Vol 13, No 1

In addition, PBS went before congress in January to ask for public funding for its stations in order to comply with FCC pressure to gear up for digital television. However, the House Appropriations Labor Subcommittee on June 23 voted against funding for the PBS DTV conversion in fiscal 1999 ($75 million had been requested). Furthermore, the Corporation for Public Broadcasting is prohibited from using its allocated funds for DTV conversion. (Note that one of PBS's concerns regarding the digital transition is that many of its viewers live in Canada where signals don't yet correspond with those from the US.) Canada reception info here.

Live satellite HDTV demonstrations are being made in the US and abroad, and members of CEMA are designing HD lines with price points that are becoming more accessible to buyers.

In late 1997, there was an experiment in live satellite HDTV relay from a theater in Lyon, France to large screen theaters screens in Paris, London, and Brussels, and digital formats were demonstrated at the January Consumer Electronics Show (CES).

Critics stress format problems as a key barrier to HDTV's 1998 roll out. A topic of discussion since the incession of the HDTV debate, format is a major technological pot hole. However, no one seems to expect the road to the digital transission to be anything other than bumpy, and each day new ideas come to the forefront as we continue on in the uphill climb toward the the HDTV peak.

Apparently unshaken by the many technical problems there are concerning format, towers, and other broadcasting issues, various consumer electronics manufacturers are lining up for the oncoming exodus of high def competition. At the January CES show, HDTV products were featured by Ampro, Hitachi, JVC, Mitsubishi, Panasonic, Philips, Pioneer, Proton, RCA (Thompson), Runco, Samsung, Sharp, Sony, Unity Motion, Vidikron, and Zenith, and 19 sets have already been sold by Matsushita.

Who to Target?

A key factor when considering roll out of digital/HD products, is the target audience. What attitude does the public have about HD? There is a basic ignorance amidst the consumer population regarding technical facts about coming consumer electronics products. HDTV sounds good to people, but will they buy it? And importantly, to whom will manufacturers direct their advertising and promotions? In an article written for Vision Consumer Electronics, Gary Shapiro
mentions that "CEMA's own numbers imply that younger males are the primary buyers, but few males make major purchases without consulting women. If advertisements and editorials are targeted at women, they are not only more likely to have an opinion when consulted by their partners, they are more likely to want to buy our products." Shapiro goes on to say that senior citizens make up 40 percent of the total household wealth of our nation's population, and the non-white population, which gets left out of polls, now represents 27 percent of the population and is growing.

What's Being Done?

Needless to day, broadcasters, manufacturers and others in the television industry are busy making plans for the digital transition. Crucial technical advances are being made and it is becoming more and more apparent to many that DTV/HDTV is a shared-risk venture that will only succeed if the various factions involved work together on finding solutions to the plethora of problems that exist. The Digital Video Broadcasting Project, (DVB) a consortium of over 200 broadcasters, manufacturers, network operators and regulatory bodies in more than 30 countries worldwide, is working diligently on designing a global standard for the delivery of digital television.

Although the different US, Japanese and European Digital Terrestrial standards all make use of the same MPEG-2 options for compressing their images, there are considerable differences in terms of modulations, sound coding and service information. This means that countries outside Europe, Japan and the US have a difficult decision to make. Each system requires a different implementaion strategy.

However, for whichever modulation standard broadcasters choose, be it ATSC 8 VSB, DVB-T COFDM, or the NHK-proposed Japanese ISDB standard (also using COFDM), manufacturers will deliver MPEG-2 HDTV and SDTV encoding equipment compliant with their choice of modulation technology.

MPEG-2, the global standard for digital video compression designed by the Moving Pictures Experts Group (MPEG), is a flexible toolkit offering a variety of "profiles" and "levels" for encoding High and Standard Definition television. DVB, the Japanese proposal and the ATSC system all use MPEG-2 for image compression, whether for a single HDTV program or for multiple standard definition channels.

Vol 13, No 1

The market for digital transmitters is estimated to be $2 billion. Manufacturers have yet to see a very big piece of that. Bob Mancuso

"There's not really been a rush to digital technology," said Bob Mancuso, president and chief executive officer of Acrodyne Industries, Inc., Blue Bell, PA "This business is still analog. It does not hurt [stations] to go replace their old analog with new analog. They can just swap out the modulator. They're buying retrofitable analog," Mancuso concluded. "That's what's really driving this markea new generation of analog equipment that's retrofitable to digital. It isn't a function of whether all this digital equipment is available, it's the cost."

Senate Commerce Meeting

Capitol Hill Senate Office Building

Senate Commerce hearings were held last month. The testimony given there sums up the inter-industry DTV bickering in the US. While other technical problems dog the launch of DTV, the all-important "must carry" question was central to the meeting. Elizabeth Murphy Burns was there representing Washington based AMSTV, as well as her Washington state TV stations. She began by saying that like her father she is prepared to make "risky, but far-sighted investments in smaller communities." Now on the brink of the DTV era she said that "if Congretional goals are to be met [for the return of the analog channel], consumers must have easy access to DTV signals over their cable systems, as well as over-the-air.

On July 10, 1998, the Federal Communications Commission released a Notice of Proposed Rulemaking (NPRM or Notice) requesting public comments about the effects the transition to digital television (DTV) will have upon cable system operators and subscribers. Comments are due on October 13, 1998 and reply comments by November 24, 1998. Through current "must carry" and "retransmission consent" requirements, the signals of full-power commercial and noncommercial broadcast television stations must be carried on local cable systems in order to ensure the successful introduction of digital TV, minimize the disruption and costs to cable operators, programmers and subscribers, and provide compatibility between cable and broadcast digital television systems. For public interest advocates, the rulemaking provides a valuable opportunity to help shape the future of television. Nearly two-thirds of US households subscribe to cable TV. The results of this proceeding will determine: consumer access to digital TV signals, availability of stations and channels are over cable systems, cable subscriber rates, and future of noncommercial video outlets (i.e. PBS, C-SPAN and public assess cable).

"Must Carry proved to be one of the most benign pieces of legislation in communications history," claimed former CBS president Gene Jankowski in his 1995 book Television Today and Tomorrow, Oxford Press. "Cable operators," he said, "acquired $6 to $7 billion worth of product at no cost, for which they in turn charge their customers." Like buying water rather than drinking from the tap, cable subscribers are paying to watch free television "because of improved reception."

In her testimony Burns offers, "The commission has long known that the DTV transition depends on three components.

1) DTV channel assignments

2) The DTV transmission standard

3) Cable carriage and compatibility

The first two are, of course, done. That leaves the third to be settled. "There is no assurance that the DTV signals will be carried on cable," said Burns. "There is no assurance...in fact it seems unlikely...that the pricey DTV sets sold in November (1998) will be able to connect with the digital cable systems."

This concern led FCC Chairman William Kinnard to insist by letter written in the first week of August, that something concrete be established, i.e., fix the problem. Firewire, the interface known as IEEE 1394, is the likely answer which Kinnard and others have been looking for. It answers all peripheral device requirements with headroom. Another point not mentioned is that pricey DTV sets are being sold without decoders. They are now sold seperately.

Stressing concern over cable's role, Burns added that there is no assurance the cable set top boxes of tomorrow will be able to process DTV signals. Today's new cable set top box passes the HDTV signal through without decoding it. Rather, the HD signal must be decoded at the TV or by an additional set top box.

Most recall that TCI Chairman John Malone railed against the idea of passing through the 1080I signal, claiming at the NCTA annual conference and briefing that it was too spectrum-extravegent and that 720p was a better choice. His comments were brushed aside by CBS and NBC as politically motivated stemming from TCI's well-known involvement with the computer industry.

Back to the hearings: Ms. Burns bluntly asked for swift FCC action to insure consumer access to DTV signals. "First, the FCC should promptly adopt carriage rules that do not unduly burden cable systems. The law re

Vol 13, No 1

quires the commission to adapt today's must carry rules to insure that cable does not act anti-competitively with respect to local broadcast signals."

A wait-and-see attitude is bound to result in DTV penetration levels that fall short of congress's transition bench mark.

"Cable has the power to exclude, degrade or otherwise disadvantage our stations. Frankly, DTV will not even have a chance unless clear carriage rules are in place very shortly."

Her lament is clear. "I can't even get in the door to negotiate with cable systems, and there's nothing to stop the systems from importing the DTV affiliates from Seattle rather than carrying local stations. Cable Systems should not limit the public's choice of broadcast signals."

She believes the FCC should take a more active roll in the issue of cable compatibility. This fall, multiple DTV signals will be on the air in at least ten major markets and DTV sets will be on the showroom floors. These sets will not have the right ports to connect to the new digital cable set top boxes. "Thus, the people who are most likely to buy a DTV set will not be able to receive the over-the-air signals through their new set top boxes."

The cable industry has not wholly settled on a common transmission technology. Neither cable nor manufacturing industries have agreed on a standards interface, like a phone jack, to transport digital material from the cable systems to the DTV receivers. The DTV set, cable box, and VCR communicate with each other...but not yet.

"The FCC needs to step in and set deadlines as it has done in other areas."

Accredited industry standard-setting bodies such as the ATSC, IEEE, and SMPTE are working on these standards, but the process has languished. "The FCC needs to step in and set deadlines as it has done in other areas. Unless the FCC plays a forcing function, broad
casters will be throwing a party but very few people will have the transportation to come."

Burns expressed her fears saying, "We are committed to DTV but we worry that factors outside the broadcasters' control may maroon our signals between the transmitter and home." She added, "We only hope that the FCC's action is fast and effective enough. A wait-and-see attitude is bound to result in DTV penetration levels that fall short of congress's transition bench mark."

"If the transition falters, it will not be because consumers saw and rejected broadcast DTV, but simply because they did not have a chance to see it."

Elizabeth Murphy Burns

Committee Chairman Senator John McCain turned to Curcuit City CEO, Alan McCullough asking him when he would have HDTV sets ready for sale. McCullough said HD sets will be available by November at a cost between $5,000-$8,000 dollars. Responding to questioning concerning VCR usage in conjunction with new HD sets, McCullough stated that today's VCRs can't record or play HD but that the HD set will output to the VCR in standard NTSC.

Circuit City is a member of the Copy Protection Technical Working Group actively working on the 1394 connector standard. McCullough went directly to the heart of the concerncopywrite infringementsaying that the easiest solution would be to migrate the digital cable functionality to the television set, thus removing the problem entirely. He went on to say that eventually this capability will exist although not as early as this fall.

McCullough went on to say that there are digital VHS machines available today. "The difficulty isn't in producing a digital VCR, but moving the signal in digital form from the VCRs to the display device." Both JVC and Hitachi have digital VCRs available and some are using them in DSS recording. The decoder still resides in the DSS box. The signal moves across encrypted and allows users to record digitally. "The question is: How do you get the digital signal from the box to the display device?"

Vol 13, No 1

The senator then asked NAB representative Greg Schmidt if he thought Mr. Lamb's (C-Span) concerns about being thrown off cable were legitimate. Schmidt denied that this problem had anything to do with must carry. He stated that the NAB is pursuing a reasonable must carry policy designed to be transitioned over time. As cable capacities grow, their must carry grows as well. He concluded that only quick and clear mandating by the FCC will insure this.

Senator McCain then asked Mr. Lamb how many viewers he had lost as a result of the 1992 must carry act. Mr. Lamb's response is that overall there were 5 million homes affected directly from must carry.

The senator then commented that if Mr. Collins didn't drop C-Span in New York, it would be due greatly to his largess, thus putting the ball entirely in the hands of the broadcasters and leaving program providers essentially powerless. He went on to say that it seems inevitable that someone will be squeezed out whether it be Mr. Lamb or someone else.

Mr. Schmidt responded that there are many difficult decisions to be made, this being only one example. He continued by saying that unless there is an agenda concerning must carry, small broadcasters might well be squeezed out, and went on to deny that there was sufficient proof of C-Span's having been bumped in 1992, stating that it was not a substantial issue. According to Mr. Schmidt, Time Warner's current system utilizes an average of 750 megahertzapproximately double what existed in the early 90sand the cable capacity will again double by the year 2004, thus making obsolete Mr. Lamb's present concerns.

Mr. Lamb, referring to the first ammendment, stated that about 98 percent of broadcast stations are carried on cable systems already, and that in 1992, in many instances others such as shopping channels and public broadcasting stations, were aired instead of C-Span. He reminded the committee that at that time, local operators had far more limited channel choices to make, and still the result was that C-Span wasn't aired. Today, according to Lamb, there are at least eighteen channels for local operators to choose from and the results could be disastrous for C-Span and many other popular channels that might find their way off the air. He finished by expressing complete exasperation with the idea of hurrying the imposition of must carry, saying that if this were to occur, customers would see a blank channel where C-Span might be and would then be required to buy expensive new television sets ($5,000-$7,000) in order to view it.

"Broadcasters are under pressure of forced march and without the cooperation of local operators the deadlines won't be met."

Returning to Mr. Schmidt, Senator McCain asked him about his thoughts on the importance of the strike force headed by FCC Commissioner Ness. Schmidt, although not entirely familiar with the strike force's activities, stated that Commissioner Ness has been very supportive in trying to get certain issues resolved; one of them being the incompatibility of certain pieces of equipment. The strike force is necessary, in Schmidt's view, to prevent localities from becoming mini FCCs and regulating towers and transmitters on the basis of RF radiation or interference, or any other concerns. He went on to say that broadcasters are under pressure of forced march and without the cooperation of local operators the deadlines won't be met.

Does he believe the analog channels would be returned by the year 2006? Schmidt said he does not believe that is a realistic schedule. "Mr. Collins would have a better idea of what penetration levels to expect."

Mr. Collins in response said that the public would have to stampede to buy HD sets in order for that [return] to happen. He reminded the senator that those who maintain use of their current analog sets will have blank screens should the signals be returned in 2006 and went on to reinforce Schmidt's statement that the cable industry will have the capacity and the capability to carry vestidial analog signals so that the transition may take place with more fluidity.

Mr. Lamb then mentioned that....based on history...he does not believe that broadcasters will ever give up the analog channels if they aren't required to do so. He agreed with Mr. Collins that the cable industry will be capable by the year 2006 of dealing with these problems. His main concern, he stated, is the immediateness of the situation.

Ms. Burns opined that if we don't have must-carry and don't have the ability to get the digital television signal to the consumer, there will be absolutely no chance of a turnback in 2006.

Curcuit City's Mr. McCullough was in agreement but added that the proper ingredience do exist for the success of this endeavor and the only question is what we do now to make it happen. He concluded that neither Congress nor any other elected body is going to allow or support a situation where millions of American television sets go blank.

Vol 13, No 1

Commission Subcommittee Chairman Senator Conrad Burns, drawing on his own background, asked Mr. McCullough if recording and playback on disk will be the wave of the future. McCullough responded that we will probably migrate to recording on a CD-type product and/or DVD-type product as the technologies evolve.

Next Sen. Burns addressed the issue of interface asking how far along talks are to date, and McCullough replied that there was still quite a way to go before standards would be set. He mentioned that set manufacturers are working on combining certain functions such as DSS and high definition, but finished by saying that the 1394 discussion was still not complete. Mr. Collins then added that there had been a recent meeting in which people from the cable industry gave a set of draft specifications to the consumer electronics manufacturers precisely to further this 1394 firewire interconnection issue.

When asked if he could quell Mr. Lamb's apprehensions concerning being taken off the air, Mr. Collins stated that he was more concerned about the threat to broadcasters saying, "The trouble with giving consolation to any particular programmer is we would have no control over the timing and so whenever the broadcaster says we now want our must carry station, whatever services we didn't have under contract at that point and required us to carry them, would have to be what we took off. So there would be enormous uncertainty.

Mr. Lamb then said that under the circumstances, it is not necessary to feed a digital signal, adding that his channel would continue to operate analog with cameras and other equipment for the near future.

Mr. McCullough added that new sets will include the capability of receiving analog signals as well as new digital transmission conversion. However he made it clear that it is currently unclear how the technology will be integrated.

When asked if the situation with digital sets could be likened to that of the Betamax video machine, McCullough expressed his faith in current standards stating that they will not allow for the obsoletion of new sets. He went on to say that there will be differMr. Lamb then said that under the circumstances, it is not necessary to feed a digital signal, adding that his channel would continue to operate analog with cameras and other equipment for the near future.

Mr. McCullough added that new sets will include the capability of receiving analog signals as well as new digital transmission conversion. However he made it
clear that it is currently unclear how the technology will be integrated.

When asked if the situation with digital sets could be likened to that of the Betamax video machine, McCullough expressed his faith in current standards stating that they will not allow for the obsoletion of new sets. He went on to say that there will be differences in picture quality depending on individual display capabilities and the decision will be up to consumers.

Mr. Schmidt's response to this statement was one of agreement. His concern, however, is that standards for connectors between current set top boxes and receivers have not been set, and some cable systems are not going to be set up to pass broadcast signals through their analog boxes. Consumers will be forced to buy additional equipment in order to make new receivers work. He went on to say that "...in many places, cable will be the only solution because there won't be good enough off-air reception to insure that an AB switch alone will work for an outdoor antenna."

Sen. Stevens then asked Mr. Collins if Time Warner's advanced digital set top box would be able to successfully receive and transmit full 1080i to the television set. Collins said that his system has been designed to receive whatever broadcasters transmit, including high definition formats. He then stressed the importance of setting the 1394 firewire standard, explaining that protocols in the firewire will allow the television or set top box to know whether analog or digital signals are available, and choose accordingly, which one to transmit. "It will allow the remote control to be just one remote control and to control both the set top box and the digital set."

When questioned about the affordability of new digital sets, Mr. McCullough, using computer prices as an example, said that consumer electronics, though they may start high, are historically known to deflate rapidly. This, he assured, would be the case with digital/HD television sets.

When asked if broadcasters are prepared to handle must carry, Ms. Burns said that her concern is that if she doesn't get must carry on her digital channel, it won't be seen. "I worry that if my digital signal is not carried through the transition period and HBO, Showtime, and the Disney Channel are all in digital television, it's going to be like watching the movie Titanic on HBO in color, and NBC in black-and-white...I think it's a different argument for local broadcasters and the networks."

When asked whether consumers will be able to buy one set that handles all signals from both cable and

Vol 13, No 1

over the air, Mr. Collins stressed again the importance of setting the 1394 firewire standard saying that once the standard is set, functions that are now relegated to set top boxes will be incorporated into the actual sets.

Mr. McCullough then said that first generation sets will not have the 1394 firewire nor will they have a port that can be hooked up when the standard is developed. According to him, when these sets were being manufactured to meet the November deadline, there was no set standard so the firewire was simply left out of the production. Those who invest in first gen sets will have to eventually buy equipment that serves the purpose of the firewire.

When asked about the functionality of the AB switch between cable and broadcast channels, Ms. Burns said it is difficult to assure that it will work on all sets in the home. McCullough quickly retorted that this problem can easily be solved with a universal remote that Circuit City will offer. He reminded Burns that people already have systems in their homes that require some manipulation in order to receive, for example, local or satellite signals. To switch back and forth between signals, many use remotes which communicate with the built-in capability of their sets.

On the subject of must carry, Ms. Burns said signal delivery is the issue that cable systems need to address. Her belief is that must carry is necessary in order for her small station to get the eyeballs it needs. Viewers will then be able to make the choice between cable or broadcast.

Concerning broadcasters, she knows of quite a few that use multiplexing and are not using all channels for HDTV at all times. She stated that currently her concern was not whether or not multicasting would be better, but that her station is guaranteed high definition carriage.

Should cable operators be allowed to degrade the HD signal? Says Mr. Collins: "It would be shooting ourselves in the foot to degrade the HD signal because those who invest in HD sets are our best customers. They're the ones willing to pay $7,000 for a set and should be able to count on HD signals being delivered at their full potential."

What if the consumer buys an HD-ready set in New York, then moves to Denver and TCI's set top box degrades the signal so it's not getting through to his display in full HD? Is that fair? Says Collins: "I think TCI won't let that happen. They'll want him to have the best picture he can get."

When asked about plans for datacasting, Mr. Schmidt stated that broadcasters' plans are still fuzzy, but if they decide to provide customers with such a service it will be motivated by their desire to keep up with the competition. Next question: What should the FCC do to approve the transition to digital? Says Schmidt: "It's important to discuss must carry, but over-the-air transmission is also a big problem. Most people at the beginning of the transition will be getting signals over the air and we have to make sure that receiver standards are sufficient to bring through a ghost-free picture. We need the FCC to dictate certain minimum requirements for receivers that assure that people who pay $7,000 dollars for a set and buy an antenna are really going to be able to get a picture wherever they live."(And that is clearly going to be the way that most people in these early-adopter days are going to get their picture...and we have got to make sure that the receiver standards have a sufficiently good noise figure and an adaptive equalizer which is a device that helps get rid of ghosting on the pictures. )

Mr. Collins then said: "I guess I'm kind of amazed this morning to find out that one of the greatest public gifts in American history is not enough. Broadcasters, having received an extra channel for every channel they already had, now feel that everybody; the consumer electronic people, the cable people, etc. has to give them some additional help in order to make things work...I think the roll of the FCC ought to be to keep its eye on the process to encourage everybody to work together...But by and large I think the correct way to have high definition actually happen in this country is to let the marketplace work."

Mr. Lamb then said that the issue of programming is being neglected and taking its place is discussion of better picture alone. Says he: "...our viewers, the people watching this hearing, will be without raw, no-frills information that they've had for the last twenty years in millions of homes throughout the United States. I can't say it any stronger than that." Point taken.

Ms. Burns responded that now that many stations have gone so far to gear up for the digital/HD transition, "...there's a possibility that [they] will not be seen in the early adoption years or that the $7,000 or $10,000 dollar sets will not allow [them] to be seen via other options." Her suggestion is that the FCC be a part of a deadline-setting system that pushes everyone towards a solution that is good for the public. "I don't see this as a perk to broadcasters. I see it as the way that the public is finally going to be able to get digital local broadcasting."

Vol 13, No 1

Senator McCain then went on to say what many have been thinking for a long time: "In all due respect Ms. Burns, you left out an important factor here and that is that you got tens of billions of dollars worth of free spectrum that was given to you over my vociferous objections, and now you're complaining about the fact that we expect you to put that spectrum to good use in a timely fashion. The great little secret was that all along, I knew, you knew, and the broadcasters knew that there wasn't a snowball's chance in Arizona that you were going to meet the 2006 deadline. The broadcasters didn't have to worry and neither did you, because no Congress and no FCC was going to let television sets all over America go blank because they're not equipped to receive HDTV. So I must say that your complaints about this deadline's being imposed ring a little hollow when you received for free, billions of dollars of something that would never be given away. No other commodity owned by the American people...not our national parks, not our public lands, not anything...would have been given away as this incredibly valuable commodity was to the broadcasters. So the broadcasters entered in to some kind of agreement which we all knew was phony." Now we can all breathe a sigh of relief!

Mr. McCullough? "We need to ask the broadcasters to take the spectrum that was entrusted to them and deliver the very best picture possible. In addition, we need to take advantage of the FCC rules which were just released and incorporate cable functionality into multi-function devices to make life easier for the customer and give him a reason to convert. And we have to find a way to deliver that signal to them."

"What we haven't talked about here today is that we need to find alternate delivery methods...I'd like to see the government's energy and the FCC's energy devoted to figuring out how we develop more programming and how we develop rapid alternative forms of delivery at low cost for the customer."

Senator Snow then began her line of questioning expressing concern for the consumer: "I would expect that most consumers are not aware of what they can expect down the road to make this conversion one way or the other; either through the purchase of a TV or a converter box and so on, and it could be a very expensive transition. Mr. McCullough, how do you expect to inform your customers about this transition?"

The gist of his reply: Circuit City has spent millions of dollars on professionals who are trained to do just that. Part of the education includes offering possible consumers the opportunity to actually see the difference in demonstrations by distributors. They will suddenly comprehend. They have but to witness a game that
usually would not be shown on television, such as Ice Hockey, (because the puck is too small to see on an NTSC set), to understand what they will be gaining if they buy an HD set. In other words, the education is in the experience.

Senator Snow replies that the transition will not be that simple because there are certain technical issues that also need to be understood by the consumer, including connector problems and equipment compatability. She then moves on to the subject of tower construction. How many need to be built? Who will build them?

The fact is, it seems there is no real answer to these questions. Guess-timating, Mr. Schmidt suggests approximately 800 need to be built across the country.

We all know the problems surrounding the building of towers. The biggy? It's all new to us, there really aren't many qualified teams, and it's dangerous work. However, as we also know, (and Mr. Schmidt points out), there are many who see a lucrative business in tower building.

Ms. Burns when questioned on the subject adds a new light. It's not just a question of where you're going to put your towers or who's going to construct them, but where you're going to get the steel.

One thing is clear, and that is that the average cost to a small station to make the transition to digital/HD, is in the hundreds of thousands and not all of them have it. Many worry they'll go under if forced to proceed in such a short amount of time.

Turning her attention to Mr. Lamb, Senator Snow asks him what he thinks would ease the transition and his reply is, "No must carry." His view is that it's unconstitional to force this on anyone. He also makes an interesting point about a possible consumer reaction to the transition, stating that when current cable viewers invest even ten more dollars in order to get 40 more stations, that's a big deal to them. They really don't know what they're getting into where digital and HD are concerned. How are we going to say to consumers, "you're going to pay more and get less channels and a better picture." It's going against everything that's been occurring for them since cable became big.

Sen. Snow then finished the session by saying that she was in agreement. People, she believes, will not take to the transition quickly.

The key is that the MPEG-2 decoder chip which will be found in all digital receivers. If enough of these chips are ordered from manufacturers, the cost of the

Vol 13, No 1

(Continued from Page 5)

digital receiver will decrease for the rollout of DTV worldwide. According to a recent report from DVB, an active market already exists in Europe, the US and around the world for MPEG-2 SDTV chips. SDTV receivers can be modified for HDTV simply by replacing the MPEG -2 SDTV chip-set with and HDTV enabled one. Here we can see how the worldwide consensus to use MPEG-2 for DTV images makes it possible for global manufacturers to market their solutions worldwide.

A Word from the Editor...

Ours is a diverse population with financial possibities unprecedented by most countries. We have the ability to do anything we wish if it's done with forethought. With proper education via hard-hitting advertising campaigns that get straight to the point with imagery designed to reach specific markets, consumers can get on the DTV/HDTV bandwagon with little or no pushing. The interest is there and with proper direction, can be productive for all.

It has been mentioned that those from the many different industries involved in the DTV/HDTV production work together, much can be accomplished. This is a shared risk venture with endless possibilities.

Vol 13, No 1

For example, viewers watching CNN Headline News can click on the Wink icon to obtain additional information about a specific national or local news story. Similarly, viewers watching a Wink-enhanced commercial could request information packages, product brochures or coupons from the advertiser. If a viewer registers a credit card with the Wink Response Network, an enhancement can enable the viewer to purchase products by using the remote control.

New Alliance Formed

A group of companies representing broadcast and cable networks; television stations; cable and satellite service providers; and the consumer electronics, PC and software industries has announced a draft specification for enhanced television programming. The authors of the specification are CableLabs; CNN; DIRECTV, Inc.; Discovery Communications, Inc.; The Walt Disney Company; Intel Corporation; Microsoft Corporation/WebTV Networks, Inc.; NBC Multimedia, Inc.; Network Computer, Inc. (NCI); NDTC Technology; Public Broadcasting Service (PBS); Sony Corporation; Tribune Company and Warner Bros.

The group, called the Advanced Television Enhancement Forum (ATVEF), has defined protocols for television programming enhanced with data, such as Internet content. The goal is to allow content creators to design enhanced programming that may be delivered over any form of transport (analog or digital TV, cable, or satellite) to all types of broadcast receivers that comply with the proposed specification.

Wink Supports ATVEF

Wink Communications, Inc. announced in late July support for a draft specification for enhanced television programming created by a group of companies representing broadcast and cable networks; cable and satellite service providers; and the consumer electronics, PC and software industries. The group, called the Advanced Television Enhancement Forum (ATVEF), has defined protocols for next-generation television programming enhanced with data, such as Internet content.

Wink Communications offers a simple-to-use, low-cost enhanced television broadcasting system named Wink Enhanced Broadcasting, that adds interactivity and electronic commerce opportunities to traditional television programming and advertising. Wink allows broadcast and cable networks and advertisers to create interactive programming and commercials to which viewers can respond by requesting information or ordering products through a remote control. The Company's Wink Response Network is designed to aggregate these responses and forward them to advertisers. Wink enhancements can provide additional

HDHow to Deliver?

According to certain broadcast executives, the price to see the new digital television service could be going up due to the fact that major television networks and cable TV company Tele-Communications Inc. are discussing deals in which TCI's cable systems would charge subscribers an additional fee for the new format, which is set for introduction this fall.

Although major details remain unresolved in the talks, the discussions suggest that broadcasts could wind up as "premium" service on some cable systems, with subscribers having the option of paying $10 or $12 per month more to receive it.

However, the idea of charging extra for broadcasters' HDTV shows drew criticism from some. Noting that TV stations were given free slices of the airwaves to offer digital broadcasts to the public, Ken Johnson, a spokesman for House telecommunications subcommittee chairman W.J. "Billy" Tauzin (R-La.), said: "It wasn't the intent of Congress to give away the spectrum for HDTV only to have consumers charged for the privilege of watching it."

Unity MotionDemonstrates High Definition TV at Baseball Stadiums

Following its successful national satellite broadcast of high definition television (HDTV) programming in June, Unity Motion took its show on the road and demonstrated HDTV at select minor league baseball stadiums in July.

Vol 13, No 1

During each game, Unity Motion used its high definition camera to show the game live on HDTV monitors at locations within each respective stadium. All fans were able to see how their team looked on HDTV, ask questions, and learn more about high definition television at these locations on public concourses. Private viewings werealso be held on the suite concourses in each stadium.

Unity Motion conducted their demonstrations from the time gates opened until they closed on game days.

The baseball stadium broadcasts were the next step in Unity Motion's plan to bring HDTV to America. On June 23, Unity Motion became the first company to broadcast HDTV signals nationally via satellite. This summer, Unity Motion is broadcasting a variety of high definition programming in both progressive and interlaced format. Simultaneously, Unity Motion is selling high definition television viewing equipment through high-end home theater dealers.

This all-format, all-scan system is the first high definition distribution system of its kind in the United States, displaying high definition programs via satellite to a national subscriber base. Beginning Sept. 20, Unity Motion will broadcast two channels of 24 hours a day.

More About Unity Motion...

Viewers Respond Positively to First Nationwide Broadcast of HDTV Programming

Those who viewed the first nationwide satellite broadcast of high definition television (HDTV) programming in late June, gave the technology rave reviews and provided important feedback on how it may be received once on the market.

On the evenings of June 23, 24, and 25, Unity Motion successfully made nationwide satellite broadcasts of general entertainment, sports, and movie programming, and demonstrated it has developed a reliable HDTV delivery system able to transmit signals from any programmer to a national audience equipped to receive and view progressive and interlaced signals.

The broadcasts were viewed at a number of locations across the country. One third of the guests at a large VIP viewing event in Seattle on June 23 were asked a series of questions to scientifically gauge their opinion of high definition television. All survey results were posted on Unity Motion's web site.

Multimedia Research Group Announces New Report

A new multi-client report by MRG Inc. (Multimedia Research Group) highlights the DTV plans for the top 150 U.S. stations, reaching over 52% of U.S. TV households. In the conversion to the new DTV standard, stations are considering how to use the various service capabilities available. The options include: HDTV (High Definition TV), SDTV (Standard Definition TV), Multi-channel (or Multi-casting), and Data-casting.

The report, DTV Broadcasters' Strategy, ROI, and Market Analysis, shows that networks have already chosen their DTV formats, but the network affiliate stations have greater flexibility to use DTV's various services. How stations will use this flexibility to their competitive advantage directly impacts decisions about production, advertising, and capital budgets.

Station executives also discuss their greatest DTV-related requirements for services and products over the next three years. The detailed analysis of costs, revenues, and ROI (Return On Investment) for DTV programming helps further clarify where capital budgets will be used long-term.

DTV Broadcasters' Strategy, ROI, and Market Analysis -- HDTV, SDTV, Multi-channel, and Data-casting 1998-2006 is available in both English and Japanese versions for $8,000.00 each, or $1,995.00 per section. It contains 170 pages and over 60 tables, charts, and illustrations.

Those interested in this report may contact Marc Leon-Guerrero at [email protected] or 408-524-9769 for additional information.

Frost & Sullivan - Move to Digital Means Long-Term Growth for Consumer

According to new strategic research from Frost & Sullivan (www.frost.com), U.S. Consumer Television Markets, product replacement is the driving force behind market growth, prompted by revolutionary technologies.

Frost and Sullivan's latest study discusses in great detail the impact that the HDTV standard will have on this market. It is made apparent in the report that while there will be a transition to digital, it is doubtful that it will happen overnight. This is because "an analog TV will always work with cable, satellite dishes, DVD and VCRs" according to Frost & Sullivan ana

Vol 13, No 1

lysts. In addition, most consumers will first purchase set-top boxes that deliver digital TV broadcasts to analog TV. Finally, the initial cost of digital TV will be too high for mainstream consumers, limiting sales to niche early adopters. For these reasons, "the changeover from analog to digital TV will be gradual and will take place over a period of several years," say Frost & Sullivan's telecommunications analysts. However, in light of the fact that an estimated one in five U.S. consumers can be labeled as an early adopter, it is expected that some HDTV revenue will be generated as early as this year.

New Report From Phillips

New reports reveal that with the advent of digital and on-demand television, Electronic Program Guides (EPGs) will become the critical promotional and branding vehicle in television broadcasting.

EPGs in the television domain will determine which channels are viewed the most and which can successfully target niche audiences.

Phillips Market Intelligence Services offers a 220 page report titled Electronic Programming Guides: The Gateway to On-demand Television.

This report provides numerous figures and tables and offers insight into EPG growth opportunities, technologies, regulatory and standards issues, as well as worldwide forecasts for deployment up to 2005.

To obtain a copy of this report, contact Tandy Williams, Director of Client Services at 301.340.7788, x5410 or via e-mail at [email protected].

New DTV Report

According to a new report from Communications Industry Researchers, Inc. (CIR), Digital Television (DTV) will be a major driver for fiber-rich local network architectures and that will boost the bottom line of the leading telecom equipment vendors.

The report titled "The New Television 2: Digital Television, HDTV, and the Future of Digital Video Networks" shows that high definition televsion is still very much a speculative technology, but the success of standard definition digital television is assured, because the transition from analog to digital television (SDTV) will be mandated in many countries, led by the United States. While much attention has been given to the fact that this will mean an entirely new generation of televisions and settop boxes, CIR believes DTV will also require a complete refurbishing of the cable television industry's infrastructure with hybrid fiber coax (HFC) networks.

The report predicts that the advent of DTV will spur the telephone companies to try their hand once more at becoming television distribution businesses, and this will mean that the telcos will speed up their deployment of digital access technologies, such as ADSL and fiber-to-the-curb (FTTC). As a result, equipment vendors specializing in such areas may experience a "boom market" in the next five years.

New IDC Survey Reveals Strong Consumer Interest In DVD Players and DigitalTelevisions

Among the many new types of digital consumer electronics products introduced in late 1997 and early 1998, DVD players and PC/TV combinations have captured the highest consumer awareness, although consumers indicated that they were most interested in purchasing digital televisions (HDTVs), DVD players, and NetTVs within the next twelve months, according to a new survey report published by International Data Corporation (IDC).

By contrast, consumers were much less aware or ready to purchase products such as Internet smart handheld devices, Internet screen phones, and on-line gaming consoles. NetTVs fell squarely in the middle of the range of market awareness and intent to purchase, with 26 percent of U.S. households stating they are familiar with the concept and seven percent stating they were likely to purchase one in the next 12 months.

But mass awareness and acceptance are not necessarily required for products to be successful. Internet screen phones and Internet smart handheld devices are shipping well over a million units per year.

This new study...which examines cross-product consumer awareness, interest, and the intent to purchase old and new types of digital consumer electronics products...also revealed there is a significant and growing number of multiple device households. With over 54 percent of homes running 3+ televisions, and with more than 12 percent running 2+ PCs, IDC believes there is a tremendous opportunity to provide home networking solutions if vendors can pick the right combination of performance, features, and ease-of-use.

Vol 13, No 1

in Brazil to decompress the audio/video signals to maintain the highest quality images and sound.

Comark is also working with the Japanese broadcasting company NHK to shoot World Cup matches in HDTV using their Hi-Vision cameras that are being transmitted across the Atlantic Ocean via satellite.

SCRI Reports Broadcast DTV Purchases Rising

According to a recently published survey by SCRI International, Inc., over four in ten broadcast and production facilities (42.6%) have already purchased and/or expect to purchase H/DTV Production / Broadcast equipment by the year 2000.

With a third of respondents still unsure as to when they might purchase, the actual purchase numbers are likely to be even higher.

The survey is conducted on SCRI's website (www.scri.com) among broadcast station and professional video facility engineers, worldwide. The current results are part of the 1998 Mid-Year Industry Trends Report.

Joint Digital TV Platform Idea Agreed Upon in Spain

Telefonica and Sogecable, respectively the main shareholders in Via Digital and Canal Satelite Digital, the two digital satellite television platforms in Spain, have reached an agreement on their intentions to develop a joint platform which will begin operations as soon as possible.

As a result of this agreement in principle, both companies have begun the judicial, financial and commercial work needed to make this goal possible, in order to benefit their clients, suppliers and shareholders. The agreement, established on a parity basis, will be submitted to the appropriate authorities and its contractual terms should be completed by September 30 of this year, without prejudice to the requirements those authorities may establish.

In addition, the report notes that with television becoming part of the digital mainstream, the fiberization of access networks can be expected to grow rapidly and that this is, in fact, already happening. The cable companies' strong commitment to deploying HFC networks is, of course, well known. Less well known is the degree to which even xDSL technologies are dependent on fiber. In some cases, ADSL has been deployed from a remote fiber hub. And in its most evolved form, xDSL will take the form of VDSL, with short copper drops from small fiber hubs, making VDSL the first standardized FTTC architecture.

This report discusses in depth how xDSL, HFC, FTTC and other related technologies are being adapted to meet the needs of high quality video transmission for the coming DTV era. However, the impact that DTV will make on the information infrastructure is not the only topic covered in depth in the report. The report also contains discussions of how the major industrialized nations are making their transformation to DTV and HDTV; detailed profiles of the DTV/HDTV strategies of the leading cable companies, satellite companies, telephone companies, terrestrial broadcasters and other service providers, as well as of those vendors who make equipment for these service providers; and ten-year forecasts of global DTV/HDTV equipment sales, broken down by product type and service provider type. Equipment forecasts cover both settops and other customer premises equipment, as well as the network equipment used by the service providers themselves.

Mitsubishi Electric and Comark Team Up On HDTV Broadcasts of World Cup

The high definition television (HDTV) broadcast of the 1998 World Cup soccer tournament in France was made possible in part by technology developed at Mitsubishi Electric Corporation and distributed by the Digital Broadcasting Business America division of Mitsubishi Electric America Inc.

The Mitsubishi Electric MH-1000 HDTV codecs are part of a production package provided by Comark Digital Services to broadcast World Cup '98 soccer matches in Brazil. The MH-1000E encoder is being used in the international broadcasting center in Paris and initial support in its operation was provided by a Mitsubishi Electric engineer. After compression, the HDTV signal is sent via satellite to San Paulo, Brazil and feeds to a digital UHF transmitter for over-the-air transmission to several viewing sites in the city. Mitsubishi MH-1000D decoders are also being used

Vol 13, No 1

Deal With Mexico and Canada

The United States entered into separate agreements with Mexico and Canada that remove a regulatory obstacle for stations in Los Angeles, New York and other top markets to air higher quality digital broadcasts.

Federal Communications Commission Chairman Bill Kennard announced the agreements recently. Five Los Angeles TV stations are affected under a memorandum of understanding Kennard signed Thursday with Mexico's Secretariat of Communications and Transportation.

And, 17 stations in New York, Boston, Chicago and Detroit are covered under a series of agreements the FCC has made with Canada over the last few weeks.

Before broadcasting in digital, these border stations needed an agreement with Mexican and Canadian regulators that their signals would not interfere with broadcasts in those countries.

The FCC said the agreement will permit the U.S. stations to meet the commission's deadlines for beginning digital broadcasts.

In Los Angeles, KABC-TV, KTLA-TV and KNBC-TV plan to start their digital

broadcasts in November. KCBS-TV and KTTV-TV are required by the FCC to begin on May 1, 1999.

The 17 stations covered under the Canadian agreements are slated to begin airing some digital broadcasts this fall and on May 1, 1999. A list of these stations was not immediately available from the FCC.

Additional agreements, however, will be necessary to cover other U.S. stations on the Canadian border which will begin airing digital TV at a later date, FCC officials said.

As part of this MOU, the companies will work to develop and promote new enhanced televisions (eTVs), which include an electronic program guide and support for interactive television programs. Microsoft will provide HTML-rendering technologies based on the Microsoft Windows CE operating system for use in these eTVs. The new eTVs will provide consumers with an integrated TV receiver, in both analog and digital versions, that provides access to the types of interactivity only available today through set-top boxes.

Also, as part of the MOU, Thomson will license and sell WebTV set-top boxes under its RCA brand in the United States and the Thomson brand in Europe.

In support of these efforts, Microsoft and Thomson plan to collaborate on products and services related to the future of television with a common U.S.-based team. One focus of this effort will be the development of products and services for digital television that combine WebTV technologies with Thomson technologies for satellite and cable operators.

30% Of Thomson Sold

The French Government agreed recently to sell as much as 30 percent of Thomson Multimedia, one of Europe's largest consumer electronics makers, to industrial partners including the Microsoft Corporation, which is expected to use the investment to expand its push into delivering Internet services via television.

The Government said that Microsoft and the DirecTV unit of the Hughes Electronics Corporation, which is part of General Motors, along with the NEC Corporation of Japan and Alcatel S.A. of France, would each be allowed to buy 7.5 percent of the state-owned Thomson Multimedia, which has been losing money for years. The financial terms of the sale were not disclosed.

DVD Gets Down To Business

Sonic Solutions announced the widespread use of its DVD production systems to prepare DVD-based training, sales presentations, promotions, and other industrial content for companies such as Philips, General Motors, Steelcase, Sea World, Mattel, McGraw-Hill Medical, and dozens of others who are taking advantage of the qualityand flexibility of DVD for their corporate video productions.

The first system designed specifically for corporate applications, Sonic's DesktopDVD System is the leading system for corporate DVD production.

Microsoft and Thomson Deal

Microsoft Corp. and Thomson Multimedia announced recently they have signed a memorandum of understanding (MOU) to develop and promote interactive and enhanced television products and services, and to accelerate the adoption of digital television globally.

As a part of this relationship Microsoft proposes to take a 7.5 percent interest in Thomson Multimedia and one seat on the Thomson board of directors, and also sit on a newly formed strategic committee of Thomson multimedia. In parallel, NEC, Alcatel and DIRECTV Inc.

Vol 13, No 1

Digital Video Conference

Miller Freeman, Inc., a leading producer of trade shows in the U.S., announced in mid-July, that the 2nd Annual Digital Video Conference & Exposition will be held October 13-16 at the Pasadena Center in Pasadena, California.

The Digital Video Conference & Exposition is a targeted technical conference and product exposition focusing on the synergy of art and science in digital video production technology. With the sponsorship of industry leaders such as Sun Microsystems and Digital Video Magazine, the DV Expo will draw over 3,000 digital video professionals from all over the world for this event.

Over 50 technical and design conference sessions ranging from beginning to advanced level will cover topics significant to the business and art of digital video production. Session topics include: storyboarding and visual pre-production, animation and video for the web, video compression, editing, creating special effects, transitioning to HDTV, business and legal issues, and much more. Cutting-edge technologies will be explored and evaluated, and case-studies of several successful digital video productions will be presented.

KRON Goes HD

Television by Design (TVBD) recently announced the completion of their first HDTV graphics project for KRON in San Francisco. The project marks the first in what promises to be a steady flow of requests from clients converting to DTV in the coming months.

In addition to announcing the 'KRON DIGITAL Clearly Better Television' slogan, the animation features an arrangement of four NTSC 720x486 clips of San Francisco scenes used at full resolution within the larger HDTV composition. Spanning four across, the scenes present a dramatic visual size comparison between the two formats. The four scenes also serve as a representation of the multi-channel possibilities available through DTV.

WNET Moves To Digital HD

Thirteen/WNET has taken a step toward introducing full digital video and audio production with the acquisition of Sony's HDVS (High Definition Video System) production system (including the new HDCAM recording format) and Sony Digital Betacam cameras, VTRs, switchers, editors and mixers for state-of-the-art edit suites and studios in Thirteen/WNET's new broadcast facility in New York. The investment positions Thirteen/WNET as a PBS leader for DTV programming and as one of the few HDTV broadcast facilities in the country.

When the station is not using the edit suite for its own productions, it will make the facility available to other public television stations.

Tele Danmark PPV

Tele Danmark has selected the digital video Movie System from SeaChange International, Inc. to anchor its 15-channel cable television pay-per-view service, which will offer feature-length movies to 765,000 subscribers throughout Denmark. This is the first Movie System installation to meet the emerging DVB (digital video broadcasting) standard, and is also SeaChange's first installed system for Copenhagen-based Tele Danmark, an international telecommunications company.

The SeaChange Movie System is an MPEG-2 video server solution that television operators worldwide are using in support of diverse video output formats including analog, serial digital and now DVB, a cable and broadcast standard for multiplexed digital video transport streams. With the DVB-compliant Movie
To receive a catalog on the Digital Video Conference & Exposition, please call 800-789-2223 or visit DV Expo on the web at www.dvexpo.com. For more information on the Media Masters Awards, contact DV Magazine at www.dv.com or write to DV Media Masters Awards, 411 Borel Avenue, Suite 100, San Mateo, CA 94402.

KTVU-Oakland and WSB-Atlanta Buy NDS High Definition Encoders

KTVU-Oakland and WSB, both owned by Cox Broadcasting Inc., are two of the most recent television stations to purchase NDS's high definition encoding system. The encoder contracts are of the first awarded to NDS by a Cox Broadcasting television station. The high definition encoders will be delivered to KTVU and WSB in time to meet their targeted November on air dates. The complete encoding systems include the NDS E5810 HDTV encoder, StreamServer PCpro management system, and a microwave DS-3 interface for the Studio Transmitter Link (STL).

Both KTVU and WSB will integrate the NDS equipment into their studio operations to broadcast a 720p/60 high definition signal beginning November 1.

Vol 13, No 1

System, SeaChange provides either Single Program Transport Stream (SPTS) or Multi-Program Transport Stream (MPTS) support, including the associated and DVB-required system information (SI) data. With MPTS support, the SeaChange system helps customers reduce the cost of deployment by eliminating downstream DVB multiplexing equipment. In addition, SeaChange's technology enables seamless DVB-compliant splicing of video clips within a movie as well as interstitial clips between movies.

The HDTV satellite transmissions were accessed again at Napa, demodulated and decoded into HDTV format using the vendor's integrated receiver/decoder and displayed on a high definition television monitor. PanAmSat is also providing bit error rate analysis to measure HDTV transmission quality.

The satellite transmissions complied with MPEG-2/DVB, the latest international video standard for compressed digital video services.

DSS In Japan

According to a recent magazine story, Japanese digital TV broadcaster DirecTV is losing customers to its rival SkyPerfecTV, causing industry analysts to worry about DirecTV's competitive edge.

Some analysts believe the weak customer response could mean that neither of the digital pay-TV platforms will be successful in Japan, where analog satellite services are prospering and have already penetrated 11 million households.

DirecTV, which is partly owned by Hughes Electronics Corp. of the United States, launched a multi-channel pay-TV service with much fanfare in December last year in Japan, more than a year after rival SkyPerfecTV.

But industry circles say customer response to DirecTV's service has been slow and has fallen since May, when Rupert Murdoch's Sky Broadcasting and Japan's PerfecTV merged to create SkyPerfecTV.

DirecTV has promised to give free tuners and dishes to about 100,000 subscribers of its partner satellite broadcaster SkyPort, which will terminate its analog service at the end of September.

The Japanese monthly magazine "Foresight" reported in its June issue that about 30,000 to 40,000 viewers who were given free DirecTV tuners and dish sets chose instead to join SkyPerfecTV by purchasing hardware costing nearly 60,000 yen.

SkyPort and DirecTV declined to confirm the figures given in the magazine.

Israel's Digital Cable

Harmonic Lightwaves, Inc. announced in late July that Golden Channels and Co., Israel's largest cable television operator, has chosen Harmonic's TRANsend digital headend to deliver digitally-based video and data services to its 420,000 subscribers throughout Israel.

Golden Channels is currently upgrading its nationwide network as part of its ambitious to provide subscribers with an array of interactive services. Initially the upgrade will allow the delivery of more channels with higher-quality pictures, with high-speed Internet access, Near-Video On Demand (NVOD), Electronic Program Guides (EPG), home shopping, home banking and other advanced services to follow shortly.

PanAmSat First HDTV Live

In mid-July, PanAmSat Corporation convened more than a dozen top broadcasters and the leading developers of high definition television (HDTV) technology in a live demonstration of multiple HDTV systems via satellite. During the two-day forum, HDTV vendors conducted tests of their HDTV systems from PanAmSat's Napa teleport over the PAS-2 Pacific Ocean Region satellite. Broadcasters and programmers viewing the HDTV demonstrations included CBS, Disney, HBO, NBC, Sony Pictures Entertainment, Turner Broadcasting, Univision and Viacom.

HDTV vendors conducting system demonstrations were Mitsubishi-Tektronix, NDS, NEC, Sony, Tiernan and Thompson. Each demo began with high definition source material at a 1.5 gigabit per second data rate. Using the vendor's HDTV system, the material was encoded into a post production quality video signal at 45 megabits per second or distribution-quality video signal at 19.3 megabits per second. The video was then uplinked from the Napa facility to PanAmSat's PAS-2 satellite in either the 1080I or 720P high definition formats. The satellite transmissions complied with MPEG-2/DVB, the latest international video standard for compressed digital video services.

Vol 13, No 1

Sky Television DTV Launch

Mark Booth, Chief Executive of British Sky Broadcasting Group plc the UK-based pay-television broadcasting group, announced at the end of July that Sky's Digital Satellite service will be launched to new customers on October 1st.

This will ensure that Sky is the first company to launch digital television services and will benefit from the key Christmas selling season. Existing Sky customers will be offered the opportunity to upgrade from analog to digital services at an earlier date.

Sky also unveiled a series of deals and initiatives to enable it to derive maximum advantage from the digital age. These cover the key aspects of the Sky Digital proposition: the hardware, the programming and the packaging of channels.

Panasonic Is First To Market HD Sets

Matsushita recently put the first digital-television sets on sale in U.S. electronics stores, and the first American to buy was Sandor Hasznos of Denver, CO who purchased the set, due for delivery the second week of August, at Ultimate Electronics, Inc. Matsushita's North American subsidiary has just started shipping its Panasonic-branded model with a 56-inch, high- definition, cinema-style wide screen, from its factory in Tijuana, Mexico. The sets can sell for $5,500 to $6,000.

Though Panasonic is the first to get a digital TV out of the lab and the factory, the set by itself can't pick up the digital signals that stations will begin to transmit in November. The company is selling a digital receiver, or set- top box, separately. The first of which will go on sale in October, with an expected price between $1,400 and $1,700, according to the Wall Street Journal.

Most other manufacturers have said they will roll out digital TVs this fall, but none has given a firm shipping date.

By November, Panasonic also intends to sell a $1,700, 32- inch model and a $3,000, 36-inch model. Both will be traditional, tube-based TVs, while the 56-inch model is a projection system, the newspaper said.

Manufacturers and retailers forecast sales of only 10,000 or so digital TVs by the end of the year, a tiny drop among the 23 million TVs U.S. consumers will buy this year.

Vol 13, No 1

Faroudja, Inc. Announces Second Quarter Results

On July 23, Faroudja, Inc. announced revenues of $3,353,000 and a net loss of $754,000, or $0.06 per share on 12.1 million diluted shares for the second quarter ended June 30, 1998. For the second quarter of 1997, Faroudja posted revenues of $4,279,000 and net income of $285,000 or $0.03 per share on 9.3 million diluted shares.

For the six months ended June 30, 1998, Faroudja recorded revenues of $6,711,000 and a net loss of $746,000, or $0.06 per share on 12.1 million diluted shares. For the comparable period last year, the Company reported revenues of $7,864,000 and net income of $534,000, or $0.06 per share on 9.2 million diluted shares.

More on Faroudja...

Yves Faroudja, founder and chief technical officer of Faroudja, Inc., received the prestigious Charles F. Jenkins Lifetime Achievement Award from the Academy of Television Arts & Sciences at the Engineering Awards Presentation in Beverly Hills, Calif.

The Engineering Emmy was given to Faroudja for the development of key patents in the arena of NTSC processing, encoding, decoding, enhancement and noise reduction. Mr. Faroudja was instrumental in developing the Sony U-matic, S-VHS and Hi-8 video recorders, and the product applications of his inventions enjoy wide recognition by broadcasters and production houses.

EchoStar Demonstrates HDTV Broadcast Technology

At the Nashville Satellite Trade Show held in July, Consumer Electronics retailers were able to witness a live HDTV satellite broadcast demonstration during the Satellite Broadcasting and Communications Association's (SBCA) retail convention. EchoStar broadcasted high-definition television programming at the DISH Network(TM) booth at the SBCA trade show onto a 16:9-ratio HDTV screen. This HDTV channel is currently broadcast on a 7 x 24 H basis.

Unlike other DBS providers, EchoStar will continue to offer its high-definition format on the high-powered, convenient 18-inch dish. In anticipation of broadcasting HDTV formats, EchoStar has developed a separate, next-generation set-top box that can receive HD satellite programming.

Tiernan Selected to Supply Encoders to Major Network

Tiernan Communications, Inc. has been selected to provide high-performance digital encoders and decoders that will enable a major US television network to meet their 'on-air' target for delivery of 720p HDTV services in November 1998.

Tiernan's THE-1 Modular DTV Encoders process both HDTV and SDTV services. The TDR6 Modular IRD can be configured to support HDTV and SDTV services and can be operated in either satellite or terrestrial networks. The modular design of Tiernan products enables them to be configured in a 'Plug-and-Play' manner to provide the required video, audio and data services. As a result, the initial investment is protected and the cost of meeting future requirements is minimized.

Tiernan Communications has also announced that its Encoders and Decoders, supporting both 1080i and 480p, will be ready in time for the scheduled on-air date beginning November 1, 1998.

DTV Express Visits Philadelphia, University City, and NYC

From In July the Delaware Valley was given the opportunity to preview the future of digital as the DTV Express, a 66-foot, 18-wheel road show featuring the latest digital television equipmen, paid its only visit to Philadelphia on the Drexel University campus.

The vehicle features DTV demonstrations and scenarios of the living room of tomorrow, the classroom of the future and a digital television station. Philadelphia was the ninth stop on a 40-city national tour.

Questions that will be answered at the show include: What will DTV mean to the average Delaware Valley viewer? What impact will DTV have on education? How soon can the viewer expect DTV? Will the viewer be able to receive DTV on their current TV or will they need special equipment? What is the reaction to digital television of those touring the DTV Express?

Vol 13, No 1

DirectTV Financial Results on Direct-To-Home Broadcast

For the quarter, revenues increased at DirecTV by 42.5% to $401.5 million from $281.7 million in the second quarter of 1997. The increase resulted from continued strong subscriber growth and average monthly revenue per subscriber, as well as low subscriber churn rates. Domestic DIRECTV propelled this growth with quarterly revenues of $368 million, a 49% increase over last year's second quarter revenues of $247 million. With 227,000 net new subscribers in the second quarter, total DIRECTV subscribers grew to 3,755,000 in the United States as of June 30, 1998. The Company's Latin American DIRECTV subsidiary, Galaxy Latin America (GLA), had second quarter revenues of $32 million compared with $13 million in 1997. With the addition of 49,000 net new subscribers in the second quarter, total DIRECTV subscribers in Latin America were 387,000 as of June 30, 1998. In addition, DIRECTV Japan(TM), a 32% owned equity affiliate, had a total of 140,000 subscribers by the end of the second quarter.

The segment operating loss in the quarter was $40.2 million compared with an operating loss of $47.9 million in the second quarter of 1997. The lower operating loss in 1998 was principally due to increased subscriber revenues that more than offset higher sales and marketing expenditures. The second quarter 1998 operating loss for the domestic DIRECTV business was $7 million compared with $21 million last year, and GLA's second quarter operating loss was $32 million compared with $33 million last year.

Ortel Announces Multiple Dwelling Site

In mid-July, the Ortel Corporation announced its system solution for the transmission of direct broadcast satellite (DBS) services in multiple dwelling units (MDUs)Ortel's LightLink.

Ortel's LightLink incorporates linear fiberoptic links into a highly flexible architecture that offers a simple, cost-effective method to provide DBS services to a large number of subscribers from a single antenna. In addition, Ortel's LightLink family of products enables both satellite and local channel signals to be transmitted over fiber from the antenna site, eliminating the need for a coax overlay for "off-air" channels.

Alternative fiberoptic MDU solutions currently offer limited flexibility in their architecture and installation design. Ortel's LightLink provides its customers with the option to purchase a system solution or simply the core fiberoptic products.

ers with the option to purchase a system solution or simply the core fiberoptic products.

For those customers with installation experience and access to Ortel qualified ancillary equipment, they may find it more cost-effective to simply buy Ortel fiberoptic products. For those customers who desire a system solution, Ortel can provide it, with a detailed installation guide.

Comcast First in New Jersey to Offer Digital Cable Service

Beginning this month, Digital Cable from Comcast will be offered to Comcast subscribers in parts of Middlesex, Union, and Essex counties. Innovations offered by fiber-optic technology and Digital Cable from Comcast include over 150 digital and analog channels with sharper video images, CD-quality audio and a host of other services such as an on-screen Interactive Program Guide; 40 commercial-free music channels in a variety of formats; and a wide array of premium and Comcast Home Theater pay per view options.

Comcast, the fourth largest cable operator in the nation, and the largest in the state of New Jersey can offer digital television service because its upgraded cable distribution system includes advanced fiber-optic technology. Comcast has deployed hundreds of miles of fiber optic cable throughout central and northern New Jersey.

According to company execs, those who choose Digital Cable from Comcast will pay only a few dollars more each month than they pay for their current premium cable package. No expensive equipment...such as a satellite dish...must be purchased up-front. The signal is fully compatible with current analog television sets.

Sharp Redefines Marketing Practice to Address Evolving Digital Technology

Needs of Consumers

Sharp Electronics Corporation, announced in early July the creation of a new sales and marketing group, the Digital Products Division (DPD). DPD, which is comprised of product planning, marketing and sales, will focus on future digital consumer electronics products, including the further development of Sharp's digital television products (DTV) for the U.S. market. The first of these DTV products will be branded under the innovative, technologically advanced SharpVision line.

Vol 13, No 1

DPD was formed by merging key members of the Consumer Electronics Group's Marketing Department, the Multimedia Development Center and the SharpVision Consumer Sales Departments. DPD, which will be a part of the Consumer Electronics Group (CEG), will be headed by Bob Scaglione, Associate Vice President, who will report to Doug Koshima, Executive Vice President, CEG.

SharpVision DTV products, including the TU-DTV1000 DTV decoder and the newly announced 64-LHP5000 rear projection HDTV set, will be distributed to regional retailers and audio/video specialist dealers nationwide. Purchasers of SharpVision products will have access to a high level of customer service and benefits, including custom design and in-home installation (from authorized SharpVision dealers). In addition, the SharpVision salesforce will provide tailored training to retailers and dealers, and a dedicated toll-free number for consumer inquiries will be established shortly.

The Open House presentation of post-production solutions and HDTV workflow, including demonstrations of film-to-HD data transfer via the Spirit DataCine, HD editing and compositing with Discreet Logic's fire and inferno, and a comparison of 1080i and
720p, covers the entire realm of film, video, animation, visual effects production and post-production.

Panasonic Receives Award for D-5 HD Recorder

The International Teleproduction Society (ITS) recently honored Panasonic Broadcast & Digital Systems Company (Secaucus, N.J.) with its 1998 Monitor Award for Special Achievement in Engineering Excellence for the development of the D-5 High Definition (HD) recorder.

The ITS is the prestigious trade association of the worldwide professional community of businesses providing creative and technical services in pictures and sound.

The D-5 HD Recorder was the industry's first full-bandwidth high-definition recording system. Panasonic is the sole recipient of the 1998 Engineering Excellence Award.

The D-5 format combines advanced intra-field 4:1 compression with high-density recording technology to produce 8-bit or 10-bit HD digital recordings on compact 1/2-inch cassette tapes. Panasonic offers a family of D-5 HD recorders: the switchable AJ-HD2700 1080I/720P VTR; the AJ-HD2000 1080I VTR; the portable AJ-HD2200 1080I VTR; and a two-piece system consisting of an external AJ-HDP500 high-definition processor connected to the standard AJ-D580 D-5 recorder.

More on Panasonic...

Complete Post Selects Panasonic D-5 HDTV System for Its High Definition Editing Panasonic Broadcast & Digital Systems Company (PBDSC) announced recently a sale to Complete Post, Inc., a Hollywood, CA post production facility, for the purchase of a complete Panasonic HDTV post production editing and effects system.

Complete Post will purchase six AJ-HD2700 1080 Interlace/720 Progressive switchable D-5 High Definition VTRs with AJ-DFC2000 480P down converters; an AV-HS3100 1080I post production switcher (complete with Digital Video Effects, Keyer, Chroma Keyer, Shadow Generator, Frame Memory Card, 525I/625I board and analog output options; one AT-H3015W 30" master HD monitor, and three versatile DT-M3050W 30" 16:9 multi-format monitors.

Wiztec Solutions to Support the First Launch of Digital Terrestrial Television in the World

Wiztec Solutions Ltd., a leading provider of Subscriber Management Systems (SMS) for pay television and convergence companies, announced recently that it had signed a multi million dollar contract with British Digital Broadcasting (BDB) to provide its WIZARD Subscriber Management and Billing System to support all customer care and billing services for the upcoming launch of BDB's Digital Terrestrial Television (DTT) services in the last quarter of this year.

In addition, Wiztec Solutions also announced that it has signed an agreement to provide the WIZARD system to an existing multi-national Direct Broadcast Satellite (DBS) operator. This second agreement includes the delivery of the WIZARD system for the customer care and billing services for all subscribers of this operator in more than 5 different countries of operation. Revenues from this project are expected to exceed 2 million dollars over a three year period.

Discreet Logic and Tape House Team Up For HDTV Event

Discreet Logic, The Tape House Companies and Silicon Graphics recently teamed up to hold a high definition (HD) Open House in New York.

Vol 13, No 1

ments of tomorrow's digital television servers and workstations.

TARGA HD makes it possible for PC-based media servers to acquire multi-channel video and audio in a wide range of compressed and uncompressed formats and simultaneously distribute that content scaled to a variety of client formats and target

bandwidths. Workstations will benefit from TARGA HD's processing power in non-linear editing, compositing, paint, and effects applications.

Unity Motion Q & A Results

During a recent live online question and answer session hosted by Unity Motion, approximately 24,000 people logged onto the company's Web site to learn about high definition television (HDTV). Those interested asked questions of a panel of experts consisting of Unity Motion's chief of special operations, 3+Maurice Weilbacher; Unity Motion's chief technical officer, Yoshi Asahi; and Turner Engineering president, John Turner.

Questions from site visitors ranged from wanting to know about technical aspects of HDTV to seeking information on the kinds of programming Unity Motion will be broadcasting when it moves to 24 hour service this fall.

Interestingly, the Q & A was cut short when lightning struck the building at Washington University in St. Louis that houses the Internet server used by Unity Motion. However, the session was so successful that Unity Motion plans to hold similar live, on-line Q & A sessions on its Web site in the future.

Text of the Q & A is available on Unity Motion's Web site and can be accessed by going to the site and clicking "Q & A Archives." The Web site address is www.unitymotion.com.

American International to Acquire Electronic Pictures California

American International Industries Inc. (formerly Energy Drilling Industries Inc.) announced in late July that it is acquiring Electronic Pictures California Inc. (EPC). EPC, a California corporation, will capitalize on the emerging market for high definition television (HDTV) programs.

EPC's plans are to specialize in the conversion of 35mm film to HDTV as well as the production of original HDTV documentaries and programs. Currently, EPC is working in conjunction with Cinema Research Corporation to develop a CRC HDTV production department. EPC is engaged in discussions with a number of documentary production companies about joint productions and is developing programs for NHK and other broadcasters.

Tiernan QPSK HD & Pan AmSat

Tiernan Communications confirmed its leadership in HDTV encoders and decoders at the demonstration of High Definition Television Technology, hosted recently by PanAmSat at their Napa teleport. The event showcased encoding and decoding equipment from six companies, operating with various modulation schemes (QPSK, 8PSK and 16 QAM) as applied to satellite distribution of HD signals.

Tiernan successfully demonstrated its equipment with QPSK at rates of 45 mbps and 19.39 mbps. Additionally, 16 QAM was demonstrated with two carriers side-by-side on one transponder at 19.39 mbps. Both signals were brought up, and the carrier levels were then reduced to show the effects on demodulation. The Tiernan THE1 Encoder and TDR6 Decoder/Receiver provided the most stable picture right down to

threshold. Unlike some rival products, the THE1 Encoder and TDR6 Decoder have been specifically designed for HD with a pathway for support of SDTV through the most advanced "plug-and-play" architecture.

Tiernan's THE1 Modular DTV Encoders process both HDTV and SDTV services. The TDR6 modular Integrated Decoder/Receiver (IRD) can be configured to support HDTV and SDTV services, and can be operated in either satellite or terrestrial networks. The modular design of Tiernan products enables them to be configured in a "plug-and-play" manner to provide the required video, audio and data services. As a result, broadcasters' investments are protected and the cost of meeting future requirements is minimized. Further, Tiernan Encoders and IRDs are the smallest and lightest weight such products on the market. Their compact design allows them to fit into the most crowded studio or mobile environments, while their light weight makes them easy to handle and install and reduces the gross weight of mobile systems.

Vol 13, No 1

Shooters, Post & Transfer/HD

Early this summer, "Shooters, Post & Transfer" will put Philadelphia on the forefront of high definition television (HDTV) production. By installing a digital/High Definition TV editing suite to work in concert with a film transfer system it acquired last year, Shooters gains the ability to produce high definition television programming and commercials. The company's level of capability will then be matched in just a handful of cities throughout the U.S.

The systems' technical abilities...online, non-linear, noncompressed digital and High Definition TV editing...enable an editor to put together images and create effects more quickly, more accurately, and more flexibly than any other technology.

The soon-to-be-installed system was chosen as Product of the Year in 1997 by the readers of Post magazine, a leading publication in the television industry.

Acquiring the new editing system is the latest among technological leaps Shooters has taken. Just about a year ago, the company boosted the area's digital television capability by installing a sophisticated all-digital film transfer suite, where film can be prepared for digital/High Definition TV broadcast. The suite's equipment includes a "telecine" or film scanner and a "color corrector" (which does what its name implies), but the Shooters models feature a technical level that's matched in few places in the U.S.

GI Record Earnings

General Instrument Corporation recently reported record earnings per share on strong earnings growth for the second quarter, which ended on June 30, 1998. EPS grew 58% year over year to $0.19 (per diluted share) in this year's second quarter from $0.12 (per pro forma share before restructuring charges) in the second quarter of 1997. Net income for the second quarter was $30 million, compared to pro forma net income before restructuring charges of $17.6 million for the second quarter of 1997.

Operating income was $49.4 million in the second quarter, compared to pro forma operating income before restructuring charges of $32.2 million for the same period last year. Operating margin of 10.1% in the sec
ond quarter of 1998 compared to 7.1% excluding restructuring charges in last year's second quarter.

Sales were $489 million for the quarter, compared to $450 million in the second quarter of 1997. The sales increase reflects more than a tripling in digital cable TV revenues, partially offset by continued weakness in sales of private/commercial satellite products and the expected decline in basic analog product revenues.

Orders for the second quarter of 1998 totaled a record $550 million, up from $493 million in the second quarter of 1997 and $508 million in the first quarter of 1998. The Company's backlog on June 30, 1998 stood at $595 million, compared to $508 million a year ago. Cash generated from GI's operating activities during the quarter exceeded $100 million.

TV revenues, partially offset by continued weakness in sales of private/commercial satellite products and the expected decline in basic analog product revenues.

Discreet Logic

A growing number of facilities are investing their HDTV future in Discreet Logic's award-winning advanced editing and effects systems, Fire and Inferno. Casablanca Finish, CBS Television, Charlex, Crawford Digital, GTN, The Tape House Companies, Toy Box, Nice Shoes, Video Post & Transfer, and Shooters are just a few of the high-end US facilities that have recently purchased combinations of Inferno and Fire to handle current NTSC jobs and the increasing demand for HDTV resolution work.

Fire and Inferno are currently the only editing and effect solutions to offer a fully integrated data interface to the Philips Spirit DataCine, as well as the unique capability of viewing the images during transfer for monitoring purposes. Discreet is also working closely with other key third party manufacturers, including DVS ProntoVision, Sierra Research and Pluto Technologies for HDTV DDR, YEM for a real-time HDTV output converter; and Viewgraphics for HDTV I/O.

Discreet Logic develops advanced systems and new media software used in the creation of digital imagery and serves three key markets: visual effects, editing and production. Discreet Logic products are used to

Truevision TARGA HD

Truevision recently announced TARGA HD, its third-generation TARGA architecture designed to meet the demanding real-time, multi-stream processing require

Vol 13, No 1

develop imagery for video, broadcast, HDTV, the web, new media and feature films, including 1998 Summer blockbuster Godzilla, the 1998 Visual Effects Academy Award winner "Titanic"; as well as previous Academy Award winner "Independence Day".

Insight Communications

Insight Communications has signed an MSO-wide agreement with Source Media's Interactive Channel, and plans to launch a new Interactive Channel service that provides a local content package which will be a portal for local interactive and Internet-sourced content before the end of 1998. The Interactive Channel, a developer, and packager of local content in digital cable systems, also provides localized links to guides, addressable advertising, interactive multimedia as well as rapid access to the Internet itself for display on TV. Insight plans on using General Instrument's DCT family of digital set-tops beginning with the first generation DCT1000 already deployed in some Insight markets.

The Interactive Channel digital application will be deployed in Insight Communications' new digital cable service tier, serving as the electronic "on-demand" navigator for a wide variety of digital programming options such as digital audio channels, more pay-per-view channels, an electronic program guide, and additional 'plexes' of branded pay TV services.

version products (PC to TV, and HDTV to NTSC) for the high-end pro AV, and Broadcast marketplace.

The Company's first product, the HyperConverter, broke new ground as the first device capable of converting high resolution, true color S-VGA output to broadcast quality NTSC/PAL available for less than $5,000. Priced from $1395, it offered an affordable solution to the desktop video environment. After a successful first year, and in response to customer needs, the HyperConverter product line expanded to include higher resolution capability (up to 1280 x 1024) with full multi-platform compatibility (PC, Mac, Sun, SGI, HP, DEC, IBM, E&S, etc.) at a base price of $2995 (formerly the exclusive domain of $10,000 - $30,000 units.) Introduced in 1996 was DoubleScan, a line doubler that converts interlaced video input to a non-interlaced, flicker-free progressively scanned video signal, affordably priced from $1395. VIDisplay, released in 1997, is a Video Interface Display that shows full-motion, true-color, television-compatible composite (NTSC/PAL/SECAM) and Y/C (S-VHS) video as well as VGA, S-VGA XGA graphics on popular flat panels. Most recently released is the QuadScan line quadrupler. Currently in development are high resolution zooming and panning scan converters ZoomConverter and ZoomConverterHD (with HDTV capability.)

Located in Silicon Valley, PC Video Conversion also specializes in designing custom computer and video interface products. The Company's most recent project is the design of a video conversion device for Polycom's latest presentation product.

PC Video Conversion is a entrepreneurial corporation operating out of Morgan Hill CA, focusing on quality designed high-end professional video conversion products. PC Video Conversion sells to systems integrators, VAR's, and OEM customers in the North American Markets.

Circuit City Goes Trekkie

On August 4, Circuit City Stores, Inc. introduced New York City consumers to digital broadcasting by demonstrating a consumer high definition television and HDTV programming. Actor James Doohan, "Scotty" from television's original Star Trek, was on hand to discuss the digital technology and sign autographs.

Circuit City is teaming with the Philips Consumer Electronics Company to show high definition programming on a consumer-grade HDTV.

addressable advertising, interactive multimedia as well as rapid access to the Internet itself for display on TV. Insight plans on using General Instrument's DCT family of digital set-tops beginning with the first generation DCT1000 already deployed in some Insight markets.

FOCUS Enhancements Buys Video Conversion Corp.

FOCUS Enhancements announced that it has signed an agreement to acquire the assets and liabilities of PC Video Conversion, Corp. from Morgan Hill, CA.

Founded in 1992, PC Video Conversion Corporation is a developer of high quality professional video con

Vol 13, No 1

Comcast Launches Interactive

Scientific-Atlanta, Inc. announced recently that Comcast Cable Communications, Inc., will offer Charleston, S.C., consumers interactive digital services using Scientific-Atlanta's Explorer(R) 2000 advanced digital set-tops and interactive network. Comcast is the fourth-largest cable system operator in the United States, with 4.4 million subscribers.

The Charleston cable system, serving 80,000 homes, is the third Comcast system to deploy digital interactive services using Scientific-Atlanta's interactive network and advanced set-tops.

Comcast is also launching services using Scientific-Atlanta technology in its Baltimore, Md., and Chamblee, Ga., systems. Consumers in all three cities will be able to enjoy Internet access, video-on-demand and IP telephony via the TV when these applications become available.

Comcast expects commercial deployment beginning in the third quarter of calendar year 1998.

(See "Products" information, page XX for detailed description of Explorer 2000.)

Scientific-Atlanta Capacity

Scientific-Atlanta, Inc. announced early this month that the company is doubling its capacity to produce Explorer 2000 advanced digital set-tops at its manufacturing facility in Juarez, Mexico.

The facility is the first to support high-volume production of advanced digital set-tops. Advanced digital set-tops comprise a whole new category of home communications terminals featuring Internet Protocol-based technology and computer-like capabilities for instantaneous two-way interactivity.

DirecTV & Thomson Deal

DIRECTV Inc., a unit of Hughes Electronics Corp., and Thomson Multimedia recently announced that the two companies have signed a wide-ranging and long-term cooperation agreement.

The memorandum of understanding commits DIRECTV and Thomson Multimedia to the joint development and distribution of advanced direct broadcast satellite (DBS) receivers and integration of DIRECTV reception capability in Thomson digital televisions. The advanced devices will be released under the respective brands of Thomson and DIRECTV.

Williams VYVX

Williams Vyvx Services announced that it has acquired a permanent lease of 9MHz of capacity on INTELSATís 806 satellite located at 319.5 East. This strengthening of Vyvxís portfolio is a strategic diversification that will enable Vyvx to offer existing and future customers services for data communications, Internet and interactive VSAT, as well as its established video transmission services.

The INTELSAT 806 has an extensive global-style footprint that covers most of Western Europe, North America and Latin America. It can be uplinked to or downlinked anywhere within the beam, both regionally and internationally, and is the only satellite for the Americas with an Eastern European reach. The satellite boasts a strong existing Latin American broadcast community, and with reservations from both European and Latin American broadcasters looking for contribution/distribution of programming on both sides of the Atlantic, it provides a unique opportunity of cutting broadcastersí costs. Additionally the high-powered C-band transponder provides a transmission channel highly suited to data communications, Internet and interactive VSAT applications.

More On Williams...

NTL and Williams Vyvx Services (known in the UK as Vyvx International Ltd.), two of the world's leading video transmission services providers, announced recently an alliance to deliver comprehensive occasional video services to the global broadcasting community. The new alliance combines the best of European and North American infrastructure and expertise to offer instant end-to-end video feeds anywhere, anytimewith a single phone call. Financial terms of the agreement were not disclosed.

And More...

Williams Vyvx Services announced the opening of an office in Miami as a centre for international video transmission services to and from Latin America. Vyvx's operation in Latin America is headed by Carmen Gonzalez-Sanfeliu, who joins Vyvx from PanAmSat.

The market for broadcast and occasional-use video transmission services to and from Latin America is expanding rapidly due to de-regulation and liberalisation of the industry as a whole. Vyvx is offering a portfolio of end-to-end video transmission services using its range of international satellite options, array of four U.S. teleports and 11,000 mile U.S. fibre optic network, which is set to expand to 20,000 miles

Vol 13, No 1

by 1999. Vyvx's global satellite capacity can provide transmissions with footprints covering North and South America, Europe, the Pacific Rim, Asia and North Africa. Carmen Gonzalez-Sanfeliu has considerable experience in the broadcast services market in Latin America. She joins Vyvx from PanAmSat where, as senior director, she was responsible for Latin America sales for services such as data, Internet, radio and full-time broadcasting. Previous positions include regional director at INTELSAT, covering Mexico, Central America and Andean Pact countries.

Microvision Demonstrates Laser Projection Television

On July 20, Microvision announced that it had successfully conducted its first demonstrations of a laser projection television display. The full color 17" image projected by the prototype system has the resolution of a VGA computer monitor and provides full motion video. With additional development, the company plans to increase the size of the projected image and to improve resolution to extremely high levels, exceeding high definition television (HDTV). Additionally, with advances in high powered miniature laser technology, coupled with Microvision's current miniature image scanner, the company ultimately envisions that the entire system could become pocket-sized.

Cable Hackers Claim Electronic Control of Time Warner Cable Network

A group of computer hackers claims to have cracked into a critical TV control systems at Time Warner Cable in the Los Angeles area, where they say they can move broadcast satellite downlink dishes and send text messages scrolling across home television screens.

The four "crackers" as the computer hackers are called, who go by the names of Optiklenz, "flemming," "tip," and "aphex", are members of a group called Legions of the Underground, also had help from an anonymous member of the group Masters of Downloading.

Local TV On Satellite Hires Jeffrey McIntyre as Vice President - Broadcasting

Local TV on Satellite, LLC (LTVS) announced recently that Jeffrey B. McIntyre, a broadcasting executive with 20 years of industry experience, will join the company as Vice President - Broadcasting, a new position.

Mr. McIntyre, 42, will work with the national broadcast networks, their affiliates, and all independent and public television stations nationwide to implement LTVS's plan to deliver all local television stations in the U.S. via satellite, giving consumers alternatives to their cable providers. He joins LTVS from Gateway Communications, where he was General Manager of WTAJ, Johnstown-Altoona-State College, Pa. Previously, in a career spanning two decades at CBS Television Network, Mr. McIntyre's positions included Vice President, Marketing of the Affiliate Relations Division, and Network Operations Supervisor. Mr. McIntyre holds a B.A. degree from Colgate University.

Falco New President Of NBC

Randy Falco has been named President of the NBC Television Network. The announcement was made by Bob Wright, President and CEO of NBC, to whom Falco reports. Falco previously served as President of Broadcast and Network

Operations for NBC and begins his new assignment September 1, replacing Neil Braun. Falco will continue to serve as chief operating officer of NBC's Olympic broadcast group.

Falco became the President of NBC's Broadcast and Network Operations division in February 1993. In that position, he has overseen the facilities and operations of the NBC Television Network worldwide. Falco was responsible for overseeing the design and creation of the "Today" show's "Window on the World" studio, MSNBC's state-of-the-art broadcast facilities in Secaucus, N.J., and the digital conversion of the NBC Television Network.

Fujitsu & COCOM DVB/DAVIC MAC

Fujitsu Microelectronics and COCOM of Denmark, have announced a collaborative agreement to develop the world's first Medium Access Control (MAC) integrated circuit compliant with the DVB/DAVIC standards. Co-operation between the two companies will result in a PCI based MAC IC meeting the DVB/DAVIC standard, which serves as a basis for European cable modem standards for fast Internet connections and other data services up to 700 times the speed of today's fastest conventional analog modems. The new device is based on COCOM DVB/DAVIC compliant core modem technology, achieving highly efficient silicon implementation and significant cost-performance benefits demanded by consumer broadband equipment manufacturers for cable modems, satellite data modems, interactive cable and satellite set top boxes.

Vol 13, No 1

Unity Motions 24Hr/Day HDTV

In early August, Leaders at Unity Motion announced at a news conference today in San Diego that the company will begin broadcasting high definition television (HDTV) programming nationwide 24 hours a day via satellite starting September 26.

Unity Motion will become the first company in the United States to broadcast high definition programming 24 hours a day. Unity Motion programming will be broadcast on one general entertainment channel. A high definition sports channel and a movie channel will be added later this fall.

Details on the 24-hour high definition programming will be announced by Unity Motion latersome at the Custom Electronics Design & Installers Association Expo in New Orleans, Sept. 9-13.

Good Guys/Best Buy Demo HD

In an attempt to prepare customers for the digital/HD transition, The Good Guys on Washington's Puget Sound, and Best Buy in Chicago have both demoed HD sets.

More on The Good Guys...

In addition, after years of anticipation over the arrival of high-definition television (HDTV), the wait is over! Consumer digital televisions became available for demonstrations and for sale at The Good Guys Beverly Connection store in Los Angeles on August 20. Additionally, The Good Guys will be doing to same in San Francisco, CA. True high definition content is being used to display the incredible sharpness of the new sets.

In the days ahead, additional The Good Guys stores will be displaying and selling the new sets. The Good Guys has also announced that this month they will be able to demonstrate HDTV full-time in all their stores with a proprietary programming system, affording them a capability few, if any, retailers will have.

Acrodyne Transmitter/KCPT-TV

Acrodyne Communications, Inc. recently announced an agreement for the sale of a dual standard UHF transmitter to Public TV 19, Inc. The agreement requires the delivery and installation of an Adjacent Channel Technology (ACT) Transmitter capable of transmitting one analog channel and one digital
channel through the same high power output amplifier. The sale is valued at approximately $750,000.

Acrodyne will install the transmitter at KCPT-TV in Kansas City, MO, to be on-air by November 1, 1998. The station presently broadcasts on channel 19 and has been allocated channel 18 for DTV. The Diacrode equipped UHF ACT transmitter is configured to deliver power outputs of 60kW NTSC and 3kW DTV to meet FCC ERP requirements. Using ACT, an Acrodyne exclusive, KCPT will broadcast two channels from one transmitter, through one antenna.

NetTV

NetTV recently announced its new low-cost digital entertainment system for home users: An all-digital system which includes a DVD player and PC technology for under $3,000. The new entertainment system, comprised of the company's ExtremeDVD players and DTV PC+TV monitors, purports to deliver five times the resolution of DVD discs played on typical analog television, the company said in a statement.

The company's DVD players start under $1,000, with digital monitors starting under $1,900. Digital televisions are expected to cost around $5,000, without DVD capability. According to company officials, DTV monitors accept inputs from PCs, VCRs, cable television, laser disc players, digital satellite receivers, and video recorders, in addition to DVD.

Additionally, the monitors feature a 125 channel television tuner for digital television signals. Net-TVs ExtremeDVD systems come with a 56-kbps modem, Windows 95, wireless remote keyboard, and start at $999. The most robust version of the ExtremeDVD, The Headliner, features a 300 Mhz Pentium II, 64MB of memory, and a 56 GB hard drive for $1,999. The new 34-inch DTV progressive scan monitor from NetTV will be priced under $1,900.

Ovum Report Says Broadcasters To Seek Alliances

New research on the opportunities for content exploitation over digital television and the Internet, published recently by independent analysts, Ovum, reveals that broadcasters will be under increasing pressure to form alliances with content providers and to reinforce their brands. Increases in capacity and quality alone are unlikely to translate into commercial advantage. Broadcasters must have access to content to develop programming packages that viewers find compelling. The findings come in a major new report from Ovum, Digital Television: How to Survive and Make Money.

Vol 13, No 1

In the report, Ovum introduces the concept of "walled garden" services, interactive services that are operated as a broadcast service within the broadcaster's environment. By 2005, Ovum predicts that "walled garden" interactive services will represent about 20% of the total revenue of digital broadcasters. Digital TV significantly changes the balance of power between content owners and television distributors. Ovum points out that large, monopolistic, vertically integrated corporations dominate both content production and distribution in today's media industry.

In addition, Ovum predicts that over the next ten years, Internet and TV environments will be driven closer together as user demand becomes increasingly driven by content rather than basic communications services. However, Ovum also points to a number of technical limitations that restrict developments. Each application that a user may want to access over either TV or the Internet has its own pattern of demand for network resources.

Digital Television: How to Survive and Make Money examines the factors that will determine how this new market will develop and provides Ovum's vision of the likely outcomes worldwide.

Harvey Electronics

Harvey Electronics, Inc. recently announced increases in net sales and comparable store sales for the three and nine month periods ended August 1, 1998.

For the thirty-nine weeks ended August 1, 1998, the Company's net sales aggregated $13,142,000 and increased approximately $1,540,000 or 13.3% over the forty weeks ended August 2, 1997. For the three months ended August 1, 1998, net sales aggregated $4,207,000 and increased approximately $798,000 or 23.4% from the same period in 1997. Comparable store sales increased 18% and 18.2% for the nine and three month periods ended August 1, 1998, respectively, as compared to the same periods in 1997.

Pioneer Global Future

Pioneer Electronic Corporation has announced its "Vision 2005." Targeting aggressive sales growth, streamlined worldwide operations, enhanced customer service, and continued innovation in leading-edge convergence products, Pioneer aims to double overall revenues by 2005.

At a recent press conference, Pioneer outlined its roadmap to the future and unveiled a bold new corporate logo, reflecting its new attitude and aggres
sive market outlook. The company also announced a global image advertising campaign to communicate its commitment to the change. As part of its commitment to Pioneer's vision for 2005 and beyond, the company identified four business objectives to harness its heritage of superior optical and display technology: Establish global leadership in DVD, achieve a successful business in next-generation display systems, secure a leadership role in Digital Home Networks, continue strategic development of key technologies and components.

Pioneer has responded to the trend towards new market niches and new products by forming four distinct operating units: Display Products Company (DPC), Home Entertainment Company (HEC), Mobile Entertainment Company (MEC), and Business Systems Company (BSC).

Pioneer's Convergence Technologies

Display

Pioneer's Display Products Company (DPC) will launch the world's only true XGA-quality plasma monitor in September. The company plans to introduce its first HDTV-ready rear-projection television later this year, providing consumers with the option to convert to a digital broadcast system. Pioneer continues to expand development of organic EL display technology and forecasts growing global markets both for consumer products and commercial applications.

Optical

Pioneer plans to establish itself as a leader in developing and producing DVD applications. Pioneer will create various new products including: DVD-Video, DVD-ROM, DVD-Recordable and soon-to-be-released DVD-Audio.

Digital Home Network

Pioneer's Vision 2005 also directs the company to develop new products in the burgeoning arena of Digital Home Network, combining entertainment and information. The company is able to produce every necessary component of a Digital Home Network, from display devices and set-top boxes to the software needed to run them.

Fujitsu Develops HDTV

Fujitsu said recently that it had developed a technology called alternate lighting of surfaces for high-resolution plasma display panels which is suited for high-definition televisions (HDTV). The technology incor

Vol 13, No 1

porates a new plasma display structure and drive method that displays up to 31.5 million dots and more than 1,000 scan lines, more than double the current 480 scan lines.

According to a company spokeswoman, Fujitsu will start production of the new plasma display panels in April 1999 with a monthly output rate of 2,000 units to supply HDTV makers at home and abroad. The company has applied for more than 10 patents related to the new technology.

USSB To Carry HBO/HDTV

U.S. Satellite Broadcasting (USSB) recently announced plans to distribute HBO HDTV nationwide by leasing transponder space from DIRECTV at the 95 (Degree) west longitude fixed satellite location. The new orbital location is the same location from which DIRECTV will deliver HDTV programming as well. This announcement reaffirms that the system used by USSB and DIRECTV to deliver programming is the market leader in the direct broadcast satellite (DBS) industry.

U.S. Satellite Broadcasting will initially preview HBO HDTV programming in retail showrooms in late 1998. When HBO begins providing residential HDTV, USSB will carry it for its digital satellite system subscribers. HBO plans to deliver HDTV content in early 1999.

Pioneer Alliance

Pioneer Electronic Corp. has formed a worldwide strategic alliance with CANAL+, the French pay-TV giant; C-Cube Microsystems, a leading provider of digital video silicon solutions; and DiviCom, a leading developer of compression systems for digital televisions; to produce an end-to-end, interoperable, digital system solution for the cable-TV industry.

Under terms of the alliance, the companies will develop an end-to-end digital system solution that will interface with cable companies' legacy billing systems while providing user interfaces on subscribers' set digital set top terminals. The system will support open standards such as MPEG-2, DAVIC, DVB, ATSC, HTML, JavaScript and Java in order to maintain interoperability.

At the heart of this new system is the client/server applications platform environment that will provide digital video and interactive television applications such as an interactive program guide, Web browsing, video-on-demand, network games, home banking, online shopping, and data and digital download capabilities.

The arrangement includes adapting CANAL+'s MEDIAHIGHWAY middleware and MEDIAGUARD conditional access systems to the U.S. market. The system will employ C-Cube's silicon-based technology for advanced set-top applications and head-end equipment supplied by DiviCom. Pioneer will market this end-to-end system solution in the United States through Pioneer's industrial sales and marketing company, Pioneer New Media Technologies Inc.

Additionally, the system will comply with the OpenCable standard and will help form the standards for software and applications interoperability. OpenCable is an effort under Cable Labs, the consortium of cable companies that defines the standards that will support digital cable systems with an open design and well-defined specifications to allow interoperability and promote competition among system suppliers.

Pioneer, CANAL+ and DiviCom will be system integrators, while Pioneer and CANAL+ will develop software applications for the system. Pioneer and CANAL+ software development efforts complement one another by combining interactive software developed by each company. CANAL+ will also participate with Pioneer and C-Cube in the development of the set-top box and will provide middle layer software from its MEDIAHIGHWAY/MEDIAGUARD technologies.

ATI Chips Used By GI

ATI Technologies Inc. recently announced their selection by General Instrument Corporation to provide graphics chips for General Instrument's next-generation advanced interactive digital cable set-top terminal, the DCT-5000+. This is ATI's initial entry into the consumer electronic space.

According to the terms of the Purchase Agreement, GI will purchase ATI's RAGE graphics chips for use in its DCT-5000+ advanced interactive digital set-tops. GI expects to supply major cable operators across North America with at least 15 million of GI's advanced digital set-top terminals over the next 3-5 years at an estimated value of $4.5 billion. To date, GI has deployed more than 1.5 million interactive digital cable set-top terminals, along with more than 600 headends. The DCT-5000+ is scheduled to begin commercial deployments throughout North America in 1999.

The ATI RAGE PRO TURBO graphics chip provides bilinear and trilinear filtering, alpha blending and fogging, gouraud and specular lighting effects, Z-buffering, front and back-end scalers, antialiasing, horizontal and vertical filtering, and overlays. These graphics

Vol 13, No 1

features will allow cable operators to implement advanced 3D applications and user interfaces.

ATI has comprehensive software technology for the emerging consumer electronics markets, including support for operating systems like Windows 95/98/NT, MacOS, and the Windows CE OS that is designed for set-top boxes. ATI also markets its Video Player application that enhances the TV viewing experience with features such as Instant Replay, Channel Preview, TV Magazine, Video Capture and Hot Words.

ATI will be providing GI with state-of-the-art multimedia software solutions for its components that are used in the DCT-5000+.

CBS Buys HyperSpace HDTV

Pluto Technologies recently announced that four CBS owned and operated stations have purchased HyperSPACE High Definition Digital Video Recorders for commercial insertion. Those stations are KYW-TV in Philadelphia, WCBS-TV in New York, KCBS-TV in Los Angeles and KPIX-TV in San Francisco. HyperSPACE will be used as a high definition spot server operating under Louth protocol.

Pluto Technologies International Inc. is based in Boulder, CO, and designs and develops computer based video storage and networking solutions for post production, broadcast and other high bandwidth industries.

Sony HDTV at Iowa Fair

Nearly one million visitors were able to view the future of television when Iowa Public Television demonstrated high definition television (HDTV) at the Iowa State Fairone of the nation's largest state fairs.

With help from Sony, this year's demonstration was the first time Iowa Public Television had shown true digital high definition to the public on a prototype consumer HD display.

Iowa Public Television displayed the tape, "Over America," using Sony Electronics' HDW-500 digital high definition VTR (HDCAM recording format), two Sony PFM-500A1WU widescreen flat panel displays and a prototype Sony 32-inch high definition FD Trinitron Wega flat screen television. Additionally, using Sony's HDW-700 digital high definition camcorder (also HDCAM format), Iowa Public Television recorded parade scenes, as well as other footage from around the fair and throughout Des Moines.

Lucent Encoder To Harris

Lucent Digital Video, a wholly-owned venture of Lucent Technologies, announced the first shipment of its production-quality HDTV encoder to its strategic partner Harris Corp [NYSE:HRS - news]. The encoder, the first of many that are scheduled for delivery to Harris in the next two months, will be delivered to one of the U.S. television stations that have purchased equipment from Harris Corp. to begin digital television (DTV) broadcasting on November 1, 1998.

Designed by Lucent Digital Video, the encoderwhich is sold by Harris as the FlexiCoderis the only MPEG-2 encoder that allows broadcasters to migrate from standard definition to high-definition video with the addition of a single video module. The encoder delivers crisp, clear pictures in either the 1080-line interlaced or 720-line progressive mode of HDTV transmission and also supports Advanced Television Systems Committee (ATSC)-compliant multichannel audio.

Consumers Confused

Only a small majority of U.S. adults (59%) have heard of or read about digital TV, and their perceptions of exactly what it offers differ widely. This combination of non-awareness and confused awareness may offer some huge marketing opportunities in the near future, according to INTECO Corporation, a market research firm that specializes in tracking consumer-level mind-set about the Internet, digital TV and other interactive technologies.

According to INTECO, those who view digital TV in terms of offering greater choice and information are more likely to have children, be younger and less affluent, while those who think it's the same as HDTV are slightly older, more affluent and less likely to have children. They are also much more likely than the "choice and information" group to delay buying any large-screen TV until HDTV is more widely available.

CEDIA Show

The Custom Electronic Design and Installation Association (CEDIA) unveiled its "Home of Electronic Lifestyles" at CEDIA EXPO '98, this month in New Orleans. The showplace home demonstrated the ultimate in home-systems integration. Built by Exhibit Creators, the EXPO '98 showcase home featured 13 of the country's hottest custom electronics manufacturers, designers and installers, spotlighting the industry's cutting-edge products as well as integrated systems that are designed to transform any home into a family's vacation destination.

Vol 13, No 1

Forbes/Gilder Gathering

Technology's top executives and influencers gathered this month at the second annual Forbes/Gilder Telecosm Conference to debate the global issues and opportunities bandwidth presents to the future of telecommunications.

Presented by Forbes Magazine and George Gilder, this year's conference titled "The Bandwidth Blowout: High Bandwidth is Here for All of Us" offered executive presentations and panel discussions. Topics and insights into orbital technology included wireless megahertz, inventions, broadband's software environment, investment opportunities and the information-age potential for misinformation.

The three-day conference will began with an opening address from George Gilder, industry influencer and president of Gilder Technology Group, and Steve Forbes. The agenda also incorporated networking opportunities and outdoor activities to offer delegates an alternative venue to exchange ideas within the group.

"Lazy" Interactivity For TV

Interactive TV will reach 10 million viewers by 2002, but a new report from Forrester Research, Inc. concludes that television providers and interactivity vendors have completely misunderstood the promise of the new medium. For interactive television to succeed, programmers must embrace lazy interactivity an approach designed for short-attention-span TV viewers.

Led by first-generation electronic program guides, lazy interactivity will eventually extend to commercials and other quick-hit applications like buy-the-CD on MTV and responding to talk show opinion polls. These applications will offer a natural extension of viewers' point-and-click activities without demanding too much thought or effort.

Several recent developments are accelerating the maturation of interactive TV. The promise of advanced functionality is being reinforced by the emergence of new consumer platforms, including Web TV and PCs with TV-tuner cards. Meanwhile, the adoption of Internet protocols for interactive content ensures a standard format for uniform delivery. The key to interactive TV's success, however, will be the arrival of digital cable, which provides a two-way connection with viewers.

With WebTV projecting 800,000 viewers by year-end and America Online developing its own TV service, the audience for interactive television is showing signs
of real growth. However, WebTV's and AOL's early lead won't last. Digital cable rollouts scheduled to begin next year will make interactive TV available to the masses. By 2002, Forrester predicts that nearly all of the 6 million digital cable subscribers will click into interactive TV services.

Forrester interviewed more than 50 television producers, advertising agencies, cable operators, and interactive product developers for its "Lazy Interactive TV" Report. Of the TV programmers interviewed, 25% believe that more than half of the programming in 2001 will have an interactive component.

Brinkley at VidTranS '98

Joel Brinkley will be a featured key note speaker at the VidTranS '98 conference and exhibition. In his address, Mr. Brinkley will review the business and regulatory issues that have led to the current state of digital television today, and then discuss the broad implications of digital television for video transport as it relates to the telecommunications industry. VidTranS '98 will be held October 4-7, 1998 in Miami, Florida.

California Microwave

California Microwave, Inc. announced in August that its Microwave Radio Communications (MRC) business area has introduced the TwinStream microwave radio system, which reduces the cost and simplifies the implementation of digital television studio-to-transmitter links.

The TwinStream radio is the first dual carrier radio for transmission of uncompressed legacy NTSC plus ATSC signals in a single 25 MHz RF channel. Featuring the MRC patent-pending "Gemini IF" approach to combining analog and digital signals as offset "intermediate frequencies" (IF) in microwave system design, the TwinStream radio is ideal for studio-to-transmitter links (STLs), transmitter-to-studio links (TSLs), and satellite backhaul requirements. Both California Microwave's Terrestrial Wireless and Satellite Communications divisions provide transmission solutions for the television broadcasting market.

California Microwave's MRC team has worked closely with three major network broadcast groups to provide advance versions of the TwinStream radio for their November DTV sign-on requirements. The TwinStream radio also is ideal for other evolutionary transitional digital transport requirements such as digital and analog programming feeds to cable headends and digital and analog.

Vol 13, No 1

Digital Dents Sky Profits

Satellite broadcaster BSkyB's profits have taken a dent as the group prepares for the launch of its digital TV service this autumn.

BskyB digital is due to go on air on October 1, with a basic programme packages starting at £6.99 a month. The family package will cost £11.99 a month and the actual Sky Digital systems will be available for £199.99 for new customers and £159.99 for existing customers. Installation will be free. Digital television will also be available later in the year on terrestial television, although a set top box will also be needed.

The cost of paving the way for the multi-channel service meant that BSkyB profits fell 14% to £270.9m. Sky's pricey Premier League football contract also contributed to the decline. Sky has the rights to live broadcasts of all matches.

Sporting rights now account for 42% of all programming costs, up from 31% last year. But the group stressed it had enjoyed a successful year, with advertising revenue and numbers of viewers both increasing significantly.

Growth of home satellite systems was held back by the impending launch of Digital, but cable subscriptions continued to rise. Subscribers to the satellite broadcaster now total almost seven million, a rise of over half a million on last year.

Two thousand telephone operators are being trained at the group's customer management centres and 1,200 installers are being recruited and trained to meet the expected demand.

Set-top box manufacturer Pace is now in production and BSkyB anticipates at least 200,000 of the boxes needed to receive digital satellite TV will be with retailers before Christmas. The group has also reached agreement with seven consumer electronics companies to develop TV sets able to receive digital satellite TV without any extra set-top equipment.

In the year to June 30, BSkyB made £270.9m before tax on £1.43bn turnover. This compares with £313.7m on £1.25bn during the previous 12 months. One reason for the healthy 15% rise in turnover was an improvement in advertising revenue which grew by almost a third to £195m. The total dividend for the year has been maintained at 6p.

Cintel Demos C-Reality

Cintel Friday announced that it will be demonstrating C-Reality, a new high-end telecine that scans film
and converts the images into digital video signals for video recording, at the International Broadcasting Convention (IBC) in Amsterdam, Sept. 11-15, 1998.

Also being featured at IBC is Cintel's URSA Diamond telecine, recognized as the benchmark for standard definition telecine transfers. Cintel will also announce the details of its reorganized customer support services. The new scheme provides worldwide 24-hour support.

Video Services & WNET

Video Services Corporation announced in August that a subsidiary, A.F. Associates, Inc., has been awarded a multimillion-dollar contract to design and build an entire new, all-digital broadcast and operations facility in New York City for the PBS member station, Thirteen/WNET. A.F. Associates is the leading systems Integrator in the broadcasting industry.

The new facility, located at 450 West 33rd Street in Manhattan, will comprise all live and taped studio production, off-line and on-line linear and non-linear post production, graphics, on-air operations, interstitial and logo insertion, transmission and electronic field production. The facility will also house new media production and all production and operations management personnel.

FCC Says Fix It

Federal Communications Commission Chairman Bill Kennard has asked the cable industry and television manufacturers to resolve technical problems involving new digital TV sets by November.

Some cable customers who buy pricey new digital high-definition TV sets this fall may not be able to see cable TV shows in the razor-sharp HDTV format because of technical and copyright issues that have yet to be resolved, said FCC officials, speaking on condition of anonymity. But they would be able to watch these shows in quality similar to what they see on regular TV sets.

Kennard's Nov. 1 goal puts pressure on all the players to act more quickly in ensuring compatibility among new digital TV sets, digital cable boxes and other consumer electronics equipment.

The FCC has been meeting with industry representatives during the past few weeks on the matter.

Vol 13, No 1

nteractive Movies

Sonic Solutions announced that its DVD Creator system has been used to produce what are believed to be the first two truly interactive movies for DVD"Tender Loving Care,"an award-winning psychological thriller produced at DVant Digital for Aftermath Media, and "I'm Your Man," a live-action film produced by Zuma Digital in collaboration with Planet Theory.

These two titles have, for the first time, exploited the fuller features of the DVD format by offering multiple story lines and complex navigation that allow the viewer to interact with the characters and their surroundings.

Working closely with DVant, Zuma, and other interactive media developers, Sonic Solutions has added interactivity tools to its DVD Producer authoring system. These new features include sophisticated multi-angle story authoring, DVD command scripting, and interactive story controls.

"Tender Loving Care" is a provocative, psychological thriller designed to take full advantage of the multimedia capabilities of DVD technology. Starring two-time Oscar-nominee John Hurt, TLC's design is unprecedented in that the viewer's psyche is the invisible director of the tale, determining both character and plot development every step of the way.

Through a series of questions during the course of the game, a set-top or PC-based DVD player generates a psychological profile of the viewer and uses this profile to create a virtually unlimited range of alternative outcomes. In several portions of the game, the viewer is free to move about and explore the house where the story takes place.

All of these capabilities were formerly limited to PC-based CD-ROM games, with only a fraction of the video and audio quality that DVD delivers.

"I'm Your Man," which was made available worldwide on Aug. 18, is the first in a series of interactive titles to be produced by ChoicePointFilms, a collaboration between Zuma and Planet Theory. This fully-interactive movie stars Kevin Seal (from MTV's "120 Minutes") and Mark Metcalf ("Animal House") and features music by Joe Jackson.

Marrying live-action film with the DVD format's programming capability, the viewer controls the story and the eventual outcome of the film. "I'm Your Man" will be released as a hybrid DVD-Video/DVD-ROM disc and contains a link to the "I'm Your Man" website (www.imyourman.com).

Sonic DVD Creator was used for the entire encoding, authoring, emulating, and premastering process in the production of "I'm Your Man." Features such as scriptable batch video encoding, real-time Dolby Digital audio encoding, and the ability to easily swap out assets during authoring were essential to the DVD title development. Sonic's new Hypermux DVD multiplexing technology improves the DVD-Video player's ability to quickly navigate seamlessly from one story line to another.

Time Warner&Scientific-Atlanta

Time Warner Cable and Scientific-Atlanta announced in early August that Time Warner is expanding deployment of Scientific-Atlanta's digital headends and network components to a significant number of major cable systems by year-end. Time Warner's rollout marks North America's first widespread deployment of digital networks capable of client/server applications and services.

Scientific-Atlanta is the primary network integrator and supplier of network equipment and digital set-tops for Time Warner Cable's Pegasus program, which is designed to bring next-generation digital video, audio and data services to cable customers. Time Warner Cable serves a total of 12 million subscribers in 37 states.

Time Warner Cable and Scientific-Atlanta have long collaborated on developing the key components of a two-way, digital broadband network. The two companies pioneered much of the technology now being incorporated into the OpenCable project, a cable industry initiative which seeks to achieve specifications for an open, fully interoperable advanced digital network. Scientific-Atlanta is under contract with CableLabs to be the end-to-end systems integrator for the OpenCable initiative.

According to Chiddix, Time Warner Cable plans to introduce a wide variety of digital services in stages on its interactive digital systems. Digital broadcast television service will be introduced first, followed by true video- on-demand, in which consumers gain immediate access to a library of movies and use rewind, fast forward, and pause features at any time during the video event. Other services to follow include e-mail, Web browsing and E-commerce.

Next Generation

Imagine the importance of distributing a picture of a missing child statewide in a matter of hours where it

Vol 13, No 1

can be seen in high-traffic retail locations by thousands of people.

The Jimmy Ryce Center for Victims of Predatory Abduction and Next Generation Network will introduce a new and innovative notification program that showcases photographs of missing children and high profile sexual predators on NGN's digital television network. Presently the photographs can be viewed at 7-Eleven convenience stores and Cumberland Farm locations throughout the State of Florida. Next Generation Network is the nation's leading provider of addressable digital television advertising. NGN currently broadcasts to 575 television monitors brand name locations statewide and over 3,000 locations nationally, reaching 10 million adults each week.

Vol 13, No 1

Products

Media 100 FINISH DV System

Media 100 Inc. developer of the award-winning FINISH and MEDIA 100 digital video systems, demonstrated recently its FINISH product line which comprises four new products with high-performance DV processing and increased broadcast compliance.

The complete FINISH product line includes FINISH V20, FINISH V40, FINISH V60, and FINISH V80. These FINISH systems use Windows NT, and give users simultaneous support for both analog Betacam and newer digital DV cameras and decks. FINISH also gives users support for QuickTime3, which provides compatibility with myriad QuickTime applications, and gives users Macintosh- to Windows NT cross platform file compatibility, so today's MEDIA 100 content creator can work with tomorrow's FINISH users.

FINISH supports broadcast standards via the ITU-R BT.601 television standard, QuickTime 3, IEEE-1394, component input and output and 4:2:2 YUV signal processing. Real-time capabilities include the ability to apply 8 simultaneous real-time effects that include audio EQ, audio effects, static titling, two stream transitions, motion and color effects and keying.

FINISH V20

FINISH V20 is designed for video assembly and conforming applications.

Production professionals can assemble video with animation and graphics created with a multitude of QuickTime based applications with FINISH V20. Principal features include support for composite, s-video and component video, balanced and unbalanced audio, 150KB/frame picture quality, real-time audio cross fades, and support for the BT.601 aspect ratio.

FINISH V40

FINISH V40 is designed for broadcast oriented editors and producers who require precision editing tools. FINISH V40 includes all of the features in V20 and adds professional level editing tools such as insert and as
semble edit, batch digitize, EDL import/export, logging import and real-time waveform and vectorscope.

FINISH V60

FINISH V60 is a complete online video production system for broadcast organizations requiring real-time video and audio functionality. FINISH V60

provides real-time audio EQ and audio effects, real-time preview transitions, alpha key and color key all at 300KB/frame picture quality.

FINISH V80

FINISH V80 is the highest performance production system in the FINISH product line incorporating all of the features of the other FINISH systems plus online quality real-time video transitions. These real-time dual stream transitions at 300KB/frame make the Finish V80 appropriate for client supervised, on-line applications which require maximum performance and maximum picture quality.

DV Integration

DV integration is available with all FINISH systems for real-time import and export of DV based media. This capability translates 4:1:1 DV based media into 4:2:2 MJPEG in real-time without sacrificing image quality. This process actually preserves picture quality as DV media shows artifacts when production processes such as titling, effects, compositing and other processes are applied.

FINISH with DV enables DV media to be used as an acquisition format that can be mixed with analog formats and then mastered to a distribution format such as Beta SP. This is possible because the analog breakout box connections, which include composite, s-video, component video, balanced and unbalanced audio, will be available to FINISH simultaneously with DV sources. All inputs and outputs, including DV, are supported simultaneously so that integrated DV and ana

Vol 13, No 1

log media can be recorded to either DV or analog devices.

QuickTime Compatibility

FINISH will provide the same seamless QuickTime integration that is provided on MEDIA 100 Macintosh systems. Now with the new integration of QuickTime 3, media can be shared between finish and other QuickTime 3 applications such as Adobe Premiere and Kinetix 3D Studio Max. QuickTime 3 will also support cross platform media sharing between FINISH and Macintosh based QuickTime 3 applications. Further, media can be exchanged with QuickTime 3 applications without exporting and without a loss in quality.

Project and Media Compatibility with MEDIA 100 4.5

FINISH and MEDIA 100 systems will be cross platform compatible via a media translator application which interprets MEDIA 100 4.5 projects as FINISH 1.0 projects and vice-versa. The application is Macintosh based and the translation performance is analogous to copying files from one drive to another. The media translator will begin shipping with FINISH systems in October 1998 and will also be available free of charge on the Media 100 web site at www.media100.com.

Pricing and Availability

The new FINISH models, V20, V40, V60 and V80, will be shipping in October 1998. The product line will be priced between $5,000 and $30,000. Specific systems and upgrade pricing will be available in September 1998.

NewTek Announces HDTV Compliant Software

NewTek, manufacturer of industry-leading 3D animation and video production products, announced in late July, plans to establish a leadership role in the Digital Television (DTV) market by introducing Resolution Studio, a suite of DTV- compliant software for digital content creation, animation, modeling, video paint and real-time High Definition Television (HDTV) playback.

Resolution Studio combines DTV versions of LightWave 3D, a leader in the 3D graphics industry, Aura, NewTek's award winning paint and compositing software, and RamPage, the industry's first software only player allowing for real-time DTV preview and
playback including HDTV resolutions. Resolution Studio gives animation and video professionals the ability to produce DTV-ready projects meeting future requirements of the United States Federal Communications Commission (FCC).

NewTek will showcase Resolution Studio at SIGGRAPH '98 in booth 1027.

With Resolution Studio, animation and video professionals can create content and animations with LightWave 3D; perform real-time manipulation, such as paint and special effects, compositing and editing of image sequences at standard video, HDTV or film resolution with Aura; and easily preview the sequence on a 16 x 9 monitor in true HDTV resolution with RamPage. RamPage, included in the Resolution Studio, allows HDTV animations to be played back in real-time from either RAM or hard drives.

Sony Switcher

In the first week of July, Sony Electronics' Broadcast & Professional Company introduced the HDS-7100 high definition digital video switcher, designed to be a flexible and affordable solution for the rapidly growing high definition video production market.

The HDS-7100 one Mix Effect (M/E) switcher extends the HDS-7000 family and complements the already popular HDS-7250 2.5 M/E and HDS-7300 3 M/E production switchers.

According to Ron Naumann, marketing manager for production and post production products at Sony Electronics' Broadcast & Professional Company, the HDS-7100 switcher provides a cost effective solution for telecine transfer, small post production applications, or small mobile applications. An excellent companion to the Sony HDCAM(TM) line of cameras, VTRs, routing, and processing equipment, the HDS-7100 provides a complete solution to the growing demand for DTV high definition production.

The HDS-7100 provides 10 HD-SDI inputs as well as program, clean, and two auxiliary bus outputs conforming to SMPTE 292M high definition serial digital format. Chroma Key, Frame Store, and single channel Digital Multi Effects (DME) can be installed to provide high quality effects layering and combining.

Utilizing the control panel from the successful DVS-2000 series SDTV production switcher, the HDS-7100 provides operators with a familiar, easy to use interface. Controls for M/E transition, DME-LINK(TM) memory, and keying are easily accessed. The single downstream keyer provides an additional layer for ti

Vol 13, No 1

tling or can also be used with the internal DME option. The superb picture quality of the HDS-7100 operating at 1080i opens a new dimension in video production. Even if the final product will be released in SDTV, the super sampling of 1080i production provides a superior SDTV product.

Other Sony HDVS products include: HDW-700, the world's first one-piece HD camcorder; HDW-500 editing VTR; HDC-700/750 studio/OB/EFP camera family; HDS-7000 high definition digital video switcher; HDME-7000 high definition digital multi effects; HDS-V3232 routing switcher, and the HKPF family of conversion products.

The HDS-7100 high definition digital video switcher is scheduled to be available in November 1998 at a suggested list price of approximately $100,000 for a base configuration.

Sharp Rear-Projection

Sharp Electronics Corporation, reinforcing its commitment to developing premium Digital TV (DTV) solutions, unveiled recently the product specifications for its first-ever Rear Projection HDTV set (64LHP5000), along with additional details on its TU-DTV1000 DTV Decoder.

Sharp has opted to sell its first DTV products under the SharpVision brand. Both the rear projection TV and the DTV decoder are scheduled for sale in the fourth quarter 1998 and are expected to sell for approximately $9,999 and $1,999, respectively.

A series of SharpVision projectors already utilize component video inputs for direct connection to the DTV decoder. In addition, Sharp will release a line of big-screen DTV-ready sets (KX series). This line is also equipped with component video inputs and will accommodate both NTSC and DTV. Sharp's KX series was developed to complement SharpVision's DTV product line and work with the decoder.

64LHP5000 Rear Projection HDTV

SharpVision's 64" diagonal widescreen rear projector is ideal for panoramic viewing. It is equipped with multiple tuners, including an ATSC decoder which decodes all 18 different DTV broadcast modes (HDTV and SDTV). In addition, the dual NTSC tuners enable broadcast or cable reception and provides Picture-in-Picture (PIP) viewing capabilities.

SharpVision's 1080I High Definition Display receives and displays high quality HDTV broadcast resolution, a true 1080I picture, providing exquisite video realism. Other DTV formats, such as 720p, 480p and even 480I, are automatically converted to 1080I and provide seamless viewing of programs broadcast in different modes.

Special Digital Expansion Port

The 64LHP5000 is equipped with a digital expansion port which will enable consumers to upgrade as services and applications become available. The SharpVision expansion port will provide consumers with the confidence of knowing that their DTV purchase will remain compatible with future DTV products and services as they evolve, such as high definition cable programming and future data services.

Gemstar GUIDE Plus+ Gold (EPG)

SharpVision's 64LHP5000 also includes the top-of-the-line Gemstar GUIDE Plus+ Gold, a built-in, interactive, on-screen electronic program guide. A continuous viewing window enables viewers to monitor their program while referencing information about upcoming programs.

Advanced DTV On-Screen Menu

The 64LHP5000 is also equipped with an advanced on-screen menu display (OSD) that enables the user to easily set-up and operate the decoder. Four color button operation makes it possible for the user to navigate the OSD via direct access to most user controlled functions. Direct access features include: auto channel scan, one touch favorite channels, channel filtering with password control and view mode selection. Additional features include built-in line doubling for enhanced NTSC picture quality and twin picture.

Convenient input and outputs are standard aspects to the 64LHP5000. For example, component video inputs enable connection with top-of-the-line DVD players while both optical and coax outputs make for easy connections to an AC-3 receiver for Dolby Digital audio.

TU-DTV1000 DTV Decoder

Once the DTV signal is available, SharpVision's TU-DTV1000 DTV Decoder will enable consumers to easily migrate from NTSC, the current TV standard, to the rich HDTV experience and enjoy digital quality

Vol 13, No 1

video and audio. The decoder is capable of receiving and converting all 18 ATSC DTV video formats to 480I, 480P and the high quality, 1080I HDTV format. In addition to consumer use, the DTV decoder is applicable for a wide range of commercial functions, including broadcasting, production, corporate, government installations and content providers.

Unique Monitor Matching

SharpVision's DTV decoder provides a unique three-way "monitor matching" feature that enables viewers to select output resolution for optimum performance with 1080I, 480P and 480I video monitors and projection systems. With the switch, the DTV decoder will smoothly match the DTV signal output to the optimum resolution of the viewer's display. This feature ensures that the transmission is output/viewed in the best available format, and provides for seamless viewing when surfing between various DTV channels regardless of the broadcast format.

Special Digital Expansion Port

In order to address consumer concerns of obsolescence, the TU-DTV1000 is already equipped with a special expansion port located at the rear of the decoder. Similar to the rear projector's digital expansion port, the DTV decoder's port will also enable consumers to upgrade and connect to high definition cable programming and future data services as those services and applications evolve.

Electronic Program Guide (EPG)

Outfitted with a proprietary PSIP-based Digital TV Program Guide, developed by Sharp Labs of America, SharpVision's DTV decoder will provide viewers with the most up-to-date and comprehensive listing of DTV programs available. The Guide features multi-channel (SD) listings, an information banner while channel surfing, small grids for program browsing and reservation functions for viewing reminders.

Other features include built-in AC-3 audio decoding, RGB and component video outputs for connection with SharpVision's LCD front projectors and Sharp's KX series TV's and S-video and composite outputs for connection with VCRs and standard resolution TV sets and projectors. Advantages of these connections are crystal clear imagesno ghosting or noise, high quality audio, including multi-channel sound and the flexibility to upgrade to a higher resolution, wide screen
display and the ability to take advantage of high definition capability of the SharpVision DTV decoder.

The TU-DTV100 comes complete with a universal remote control enabling complete control of Sharp's DTV decoder as well as other video sources.

Set Top Box for MMDS

TV/COM International Inc., a subsidiary of Hyundai Electronics and a world leader in supplying open architecture delivery solutions for cable, satellite, PC and terrestrial television networks, announced in early July that it had signed a contract with SkyCable Inc., of Manitoba, to supply the TVC-3100 QAM set-top box for SkyCable's digital MMDS (Multi-channel, Multi-point Distribution Service) video network.

Initial delivery is slated for mid-October of this year. TV/COM is exhibiting at WCA '98 at booth 210.

SkyCable currently operates a 60,000 square mile digital MMDS network in the Canadian province of Manitoba, covering Winnipeg, Brandon, and 220 municipalities across the province. SkyCable is a subsidiary of Craig Broadcast Systems Inc., a major western Canadian television and radio broadcast company that has been operating for more than 50 years.

QAM-Based STBs

The TVC-3100, to be supplied to SkyCable, is based on TV/COM's patented QAM technology, which is highly regarded in the industry. TV/COM's QAM technology provides a highly bandwidth-efficient transfer of information, enabling more efficient use of the spectrum than other competitive products. It provides low-cost, high-performance reception for high-speed linkage of MPEG-2/DVB digital video, audio and data transmission in broadband environments. TV/COM's QAM technology features fully variable 2-10 MHz reception with 16, 32, 64, 128 or 256 constellations.

About TV/COM

TV/COM has aggressively expanded into the world market for secure distribution of information and entertainment programming, focusing on high-performance digital delivery systems for cable, satellite, PC and terrestrial networks. As a complete end-to-end solution provider, TV/COM is focused on meeting operators' current and future needs with its MPEG-2/DVB compression products.

Vol 13, No 1

NEC TechnologiesMultiSync XG Series CRT Projectors

Have you seen NEC's new CRT Projectors? Equipped with a Liquid Coupled Optical System, the MultiSync SG110LC and XG135LC projectors reduce light loss due to reflection, resulting in a 40% increase in contrast and a 20% increase in brightness.

The Intelligent Memory Management System (IMMS) makes auto convergence systems obsolete by ensuring that a converged image will always be displayed, even when new signals are added. In addition, it allows you to store up to 100 different signal profiles. When a new input is added, it will automatically be fit into a matching profile for accurate images with minimal adjustment.

An added attraction of the MultiSync XG Series is the fact that you're not limited to a single resolution. With its Multiple Resolution Capability, your image is displayed exactly the way it was createdwith no interpolation.

In addition, with its broad compatibility, the MultiSync XG series means that as your needs or sources change, you won't need to change your display device. You can easily connect a PC, Macintosh, notebook computer workstation or video source and switch seamlessly between them. The new series can display 4:3, 16:9 for HDTV, letterbox format or any aspect ratio available, allowing extreme flexibility.

Vela Research Introduces Broadcast Version of Argus MPEG-2 Encoding System

In late March, Vela Research LP, a leading provider of video compression products for the cable and broadcast industries, announced the introduction of Broadcast Argus, its Windows NT-based MPEG-2 encoder system designed for a broad range of professional applications needing 4:2:2 Profile digital video encoding.

Broadcast Argus has an extensive range of encoding capabilities for high-quality broadcast and post-production applications like contribution quality encoding end editing. It is a full featured MPEG encoder on the Windows NT platform. New features available on Argus include pause and resume encoding, dual stereo audio and enhanced encode decision list features. The pause and resume encoding function provides the ability to pause in the middle of an encode, change or reposition the tape, and continue encoding into a single MPEG file. This feature is especially important for
users wishing to encode from multiple tapes into a single MPEG file or perform simple cuts editing.

In addition, Broadcast Argus supports dual stereo or four mono audio channels. Users now have the ability to support multiple languages or supplemental audio channels in a single MPEG file.

Vela considers the extended Encode Decision List (EDL) to be an important enhancement of Broadcast Argus, having added several features to the EDL including cut and paste, sorting and importing/exporting of lists. With cut and paste, clips can be copied, cut and pasted within and between lists. Sorting allows for a list to be sorted by clip name, mark in time or by column. Users can import or export lists from standard text files to create EDLs offline. All of these features provide greater flexibility and add to Broadcast Argus's ease-of-use.

Vela Research offers a robust and versatile application programming interface (API) for Broadcast Argus to empower integrators and developers in creating their applications. The Broadcast Argus API gives developers the tools they need for enhanced interactivity and to maintain complete control over the Broadcast Argus encoder.

Available in a rack-mount configuration, Broadcast Argus creates streams at MPEG-1 SIF, MPEG-2 Half D-1, MPEG-2 D-1 (AFF) and 4:2:2 resolutions. It will begin shipping in the third quarter, and special upgrade pricing and options will be available to current Argus users. Ongoing technical support and volume discount pricing will also be available.

More on Vela...

Vela Research recently announced the introduction of Cine View Pro, its PCI-based plug and play MPEG-2 decoder board, designed to deliver 4:2:2 Profile video to broadcasters. Cine View Pro is part of Vela's line of PCI-based decoders, featuring MPEG-2 decoding direct to a PC VGA monitor and an NTSC or PAL monitor. This half-length PCI board is aimed at real-time decoding for broadcast and post-production applications including decoding contribution feeds and features SMPTE 259M digital output and genlock input. It decodes MPEG-1 and MPEG-2 system, program, transport, audio-elementary and video-only streams from SIF to full resolution ITU-R-601 at 25 and 30 frames-per-second. In addition, Cine View Pro decodes MPEG-2 4:2:2 Profile streams at up to 50 Mbps. By enabling the full range of MPEG playback, Vela gives the system integrator or OEM the ability to de

Vol 13, No 1

velop a complete digital video solution for their customers.

Cine View Pro will begin shipping in the third quarter. Special upgrade pricing and options will be available to current Cine View users and once again, ongoing technical support and volume discount pricing will be available.

Tapes Available for WVHS

HD Vision, using state of the art high definition cameras, has produced a wildlife program that covers various remote areas of the state of Texas. Close up views of everything from rattlesnakes to hawks yield stunning and colorful images. Watch intently as millions of bats make a nightly pilgrimage to devour tons of insects; admire the serenity of young deer in the pastoral setting of a rich, green meadow. From alligators in swamps to insects in the desert, this study of Texas wildlife in its natural habitat is an excellent addition for your high definition library.

AmPro's ALICE Projector

AmPro, the largest U.S. manufacturer of large-screen projectors, has come out with the ALICE Projector, which combines two sophisticated technologiesTexas Instruments' Digital Light Processing (3-chip DLP engine) and Intel's Pentium Processorresulting in a dazzlingly bright display and the world's first all-digital projection system.

A few of ALICE's accessories include virtually every PC option (CD ROM, modem, teleconferencing module, theater controller, DVD, etc.). ALICE's Auto-Setup automatically sets the projector for great images with virtually all computer sources within seconds. Scaling to fit the screen, fine image width adjustments, horizontal and vertical positioning, and several other adjustments are automatically set for optimal pictures. Additional touch-up, if required, has been simplified through a setup wizard. To top it off, the serious video buff won't want to settle for anything less than AmPro's proprietary Faroudja video decoder option.

Winner of the prestigious '98 Innovations Award, ALICE was also selected "Editor's Choice" by AV Video & Multimedia Magazine. Now that you have your Hitachi DVHS, what's stopping you from hooking up ALICE?

HitachiA Reminder...

If you're perched on your couch, remote control in hand, waiting for the imminent High Def program
ming, you might be interested in Hitachi's HDS220S Digital Satellite Receiver and the VTDX815A DVHS Video Recorder, which will be on the market starting in the fourth quarter of this year. Using a simple connection with a Digital Interface, or Digital A/V bus, between the VCR and the DSS receiver, allows for constant two-way communication between both the VCR and the DSS receiver. This connection allows for the VCR to record data in bit stream format. The DSS receiver then acts as the decoder allowing for both bit stream recording and playback thru the simplified A/V bus.

Some advantages of the VTDX815A include over 500 lines of resolution, CD quality sound, records and plays both VHS & DVHS for full compatibility, records up to 5 hours using DVHS tape, and its Digital Interface provides easy hook-up to DSS receivers.

HP Introduces Industry's First Test Solution for European Digital-Broadcast-Television Services Hewlett-Packard Company recently introduced the industry's first test solution designed to help European equipment manufacturers and broadcast-television operators develop, manufacture and install networks of high-quality digital-terrestrial broadcast transmitters, quickly and confidently.

The new software extends the modulation-analysis capability of the HP 89441A vector signal analyzer to include digital video broadcast-terrestrial (DVB-T), allowing manufacturers and network operators to measure transmitter quality.

The analysis software provides consistent data that adheres to the recommendations of the DVB Measurements Group, an industry body that recommends measurement practices for digital television systems. DVB-T compliance helps ensure a common understanding of modulation quality regardless of transmission medium.

The HP 89441A vector signal analyzer, a high-performance spectrum analyzer up to 2.65 gigahertz, can make all of the basic radio frequency (RF) measurements on the modulator or transmitter under test, such as channel power and flatness, adjacent channel power and spurious emissions. It has built-in digital analysis that allows transmitter designers and manufacturers to measure several modulation formats with one instrument, from simple binary phase shift keying (BPSK) to such complex formats as quadrature amplitude modulation (QAM) and vestigial sideband modulation (VSB).

Vol 13, No 1

The software extracts data from the vector signal analyzer and displays the information in constellation diagrams. It measures the modulation-error ratio (MER) to give a quantitative result for modulation quality, which is important to ensure development and delivery of high-quality transmitters to broadcasters. The application also indicates equalizer response and plots modulation error by carrier, a valuable aid to trouble-shooting in both design and manufacturing.

DVB-T is the standard for digital-broadcast-television transmission accepted throughout Europe. It uses a modulation scheme known as coded orthogonal frequency division multiplexing (COFDM), a high-density, multicarrier environment chosen specifically to accommodate large single-frequency networks of broadcast transmitters and to combat the high probability of multipath interference expected in cities. The transmitted signal consists of a nominal 2,000 (2k) or 8,000 (8k) carrier within the 8 megahertz bandwidth of a standard channel, with data modulated onto the carriers using low data-rate 16 or 64 QAM or quadrature phase shift keying (QPSK).

The HP E9285A Option K01 DVB-T COFDM analysis software is available now for $5,500.

Motorola DTV Chip

What is believed to be the world's first Single-Chip Front-end Solution for the Digital Terrestrial Television (DTTV) market has been introduced by Motorola's Semiconductor Products Sector.

The device is a result of the long term development partnership between the two companies NDS and Motorola.

With this chip, digital set-top box and TV manufacturers have a cost-effective solution to bring Terrestrial TV products to market quickly. The UK will launch DTTV by the end of 1998 and many European broadcasters and Japan plan to deploy digital terrestrial programs over the next few years. NDS is a recognized leader in digital video compression and conditional access.

The new DTTV chip, MC92314DH, provides the necessary functionality to demodulate and decode DVB-T 2K carrier compliant broadcast signals. The device includes three major blocks: a 2K Coded Orthogonal Frequency Division Multiplex (COFDM) Demodulation, a 2K-mode Fast Fourier Transform (2K-FFT) processing and Forward Error Correction (FEC).

The digital terrestrial broadcast signals will be received and demodulated using the DVB-T specification. The output is an MPEG-2 stream for use in digital TV sets or set-top boxes.

Motorola plans to have the 2K/8K Single-Chip Receiver ready for the European market by the end of the year. This device will be pin-compatible with the MC92314DH. Motorola's customers can then select between the two chips, a 2K and a 2K/8K receiver. If the application does not need the 8K implementation, the lower cost 2K device with a reduced die size can be implemented.

First samples of the MC92314 device together with its evaluation board are being supplied to beta site customers now. Volume production for the 2K one-chip solution is planned for December 1998. Motorola plans to price the chip at sub $20 for volume purchase. The 2K/8K demodulator chip will be demonstrated before the end of this year for the wider European Digital Terrestrial TV roll out.

Scientific-Atlanta's Explorer2000

The Scientific-Atlanta Explorer 2000 advanced digital set-top and interactive network has high-throughput two-way communications and sufficient processing power, memory, and graphics to enable a variety of two-way, interactive applications for consumers, including Internet access, video-on- demand and IP-based applications.

Features of the Explorer 2000 set-top and interactive network include the following:

Instantaneous, two-way communications based on Internet Protocol

The most powerful high-speed RISC processor pres ently available in the cable set-top industry

Based on OpenCable(TM) specifications (ensures system meets industry standards)

Ethernet 10BaseT and universal serial bus (USB) in terface (supports hook up to the PC, printers, and other peripherals)

PowerTV(R) Operating System

Multiple middleware choices including HTML, and JavaScript, PersonalJava(TM) (for application de velopment)

PowerKEY(TM) Security System (for E-commerce)

Vol 13, No 1

Smartcard slot (for added security and electronic commerce transactions)

Eagle(TM) multimedia technology (for high resolu tion, photo-realistic graphics)

Dolby AC3 digital audio

Panasonic's PT-56WXF90

Panasonic Consumer Electronics Company (PCEC) has begun national distribution of its first HDTV television product, a 56-inch (diagonal) widescreen projection TV, model PT-56WXF90. One of the first HDTV consumer products to be brought to market, this new monitor will not only display the astounding clarity and detail of the new digital television broadcast format, but will enhance the picture quality of today's standard (NTSC) programming.

When paired with a DTV-certified set-top decoder, such as Panasonic's forthcoming TU-DST50, the TV can display both High Definition (HDTV) 1080 line-interlaced (1080i) and Standard Definition (SDTV) 480-line progressive (480p) and 480-line interlaced (480i) DTV formats. The television will also up-convert conventional NTSC analog signals to 480p, dramatically enhancing the picture quality of today's standard TV broadcasts. Its built-in progressive scan converter delivers remarkably sharp, detailed images without visible scan lines.

A companion DTV-certified set-top decoder debuts in October. Also planned for introduction this fall is new SuperFlat(TM) System 32-inch (diagonal) SDTV-compatible monitor/receiver and a D-VHS VCRa combination digital and analog VCR.

Suggested retail price for the Panasonic PT-56WXF90 HD-compatible monitor is $5999.95.

Vol 13, No 1

A Summary of Eurovision's Networking Service

by Samantha de la Vega
The European Broadcasting Union is the world's number one provider of international television transmission services. Transponders on Eutelsat II-F4 offer true Europe-wide coverage, and from 50 satellite gateways across Europe, Eurovision Network Services can set up top-quality connections regardless of climatic conditions. Four and two half wide-beam 72 MHz transponders are organized into eight FM analog video channels, dedicated to the transmission of broadcast-quality sound and vision. There are five SCPC slots for 8 Mbit/s digital television transmissions and two SCPC 2 Mbit/s stereophonic sound channels for Euroradio. The satellite also carries a large number of 75 kbit/s co-ordination channels. Wherever you wish to broadcast from, there is bound to be a signal close to your origin as well as your destination.

Technical quality is under constant surveillance with all the National Technical Coordination Centres (CNCT) looking out for problems that may affect transmissions. This same coordination network, on-call 24 hours a day, allows transmission services to be provided at very short notice and is supplemented with a 6000-kilometer web of permanently-leased terrestrial links.

Eurovision's Network Services include covering transmission capacity, up-linking, space capacity, down-linking, encryption and terrestrial networking. Extending from Reykjavik to Jersusalem and from Moscow to the Azores, Eurovision is the only multi-origin/multi-destination television carrier in the region.

Eurovision resource management extends from setting up the simplest point-to-point link, to the coordination and administration of transmissions for the most complex and prestigeous events such as the Olympic Games, or catering for last-minute demands for news coverage where availability and rapidity are the primary concerns.

Whatever the users' requirements, the EBU offers circuits and equipment, carries out the planning and coordination, and ensures the smooth running of the transmission itself, notably through the circulation of a synopsis summarizing all the key elements.

Eurovision's network is frequently used by broadcasters to feed their own news coverage back to base. Live feeds into national newscasts, the transmission of taped reports in any of the standard broadcast formats and accompanying coordination facilities are made available to all reporters and production teams covering important events. The facilities typically include the ability to go live into a bulletin and videotape playback in both the 625-line PAL and 525-line NTSC formats and are for use by the co-ordinated use of all news broadcasters. The EBU has a long-standing tradition of providing temporary production and transmission facilities in some of the world's most dangerous or most difficult locations where news is being made.

In addition, Eurovision's Programme Service serves as intermediary between the organizers of important news events and the broadcasters who wish to air them.

The EBU's 63 Active Members are national radio and televison broadcasters whose primary emphasis is on the production and delivery of quality broadcast programming in support of national and European cultural and social values. However, the world at large is not forgotten. 52 Associate Members in 30 countries, representing national broadcasters' interests in the Americas, Asia, Africa and Oceania, contribute to making the European Broadcasting Union not just the oldest but also the world's largest and furthest-reaching professional association dedicated to the service of broadcasters.

The EBU covers three different purposes: Firstly, it is a professional association defending the interests of its members. Secondly, it is the initiator and coordinator of studies in all sectors of the broadcasting industry including technical, legal, and economic programs. And last but not least, it provides operational services under the banners of Euroradio and Eurovision.

For information and prices, you may call EBU Marketing and Sales at:

+44 22 717 21 10/15 or FAX to: +44 22 717 21 16

Vol 13, No 1