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June 1999
When lamenting the slow uptake of HDTV by consumers, most point to the paucity of programming available in that format. "Programming must drive interest." many accurately contend. But a little recognized fact is that there is considerable quantity of programming in the HDTV 1080i and 720p formats today. It's just that there seems to be no easy way to get it, with rare exception.
"It's slow, like everyone told us it would be," said Bob Zitter, Vice President, Network Operations for HBO. Zitter heads up the HDTV side of HBO's business. HBO has been broadcasting since April 16th in 1080i to almost no one. As much as five hours per day of HBO-HDTV programming rains down from previously unused satellite capacity in HBO's inventory hoping for affiliates to retransmit it The east and west signals are being received by only two affiliates--the Time-Warner cable system in New York City and, though I can't yet confirm it, Cablevision--also in NYC. I did call Cablevision and so far no one knows who has answered my inquiry. Others who are more conversant are due to call me back
As to other HBO "affiliates," upon appearance of the 256 QAM decoders in the marketplace, the Tampa Time-Warner cable system will also carry the HBO feeds. Later, as GI's new set top boxes (full decoders) are in the market, other affiliates say they will also carry the feeds.
Retail At Crossroads? Or Are They Just Confused By The X?
Since CableVsion now owns the WHIZ, I decided to call several of their stores in the New York area to see just what light they can shed on things HD. From the Massapequa store I learned from Kurt that it is the "coming thing" and "Cablevision would be carrying the signals in ten years." He said he had two sets in his showroom, but due to high-cost few were buying them. But no hurry, he told me as a prospective customer, since HDTV broadcast signals won't be here for another 10 to 15 years. But that is not so important since, according a rather vague explanation, "the decoders that come with the Sony turns regular TV signals into high-definition." Well, it's always good being well-informed by the industry's last line of offense.
From Long Island's Valley Stream store David informs us that Cablevision is carrying "some kind" of HDTV programs from Madison Square Gardens, noting the Nick's game was in HD last night. When asked if Cablevision carries HBO's HDTV programming, he said :"Oh yeah, you can sometimes get movies in HD from HBO there." What about over-the-air broadcasting of HDTV? "Er, what do you mean? What's that?" I refined my question to one more understandable, "Do I NEED an antenna? "Oh, yeah, you can pick it up, I think. Er, let me ask someone..." Shortly thereafter the phone went dead as Dave lost it while trying to understand, with stealth-like efficiency, my $7,000 inquiry. Sorry, David, no sale!
Now to uptown Manhattan to the WHIZ at 212 E. 57th Street where Romand impressed me with his more-businesslike knowledge. From him I learn that, no, Cablevision is not carrying any HDTV (in Manhattan) due to the bandwidth requirements. It is coming only from the sky as long as you use a highly directional antenna, or pick-up the two HDTV channels from DirecTV!" He carries the Panasonic 56 inch 16:9 sets along with the Mitsubishi 4:3 HD-ready sets. Both need decoders, or you just settle for "awesome" DvD playback. Sixty bucks gets these 200 pounders into your living room delivered right from the warehouse in about a week. The 57th Street store sold five HDs in two months, which they considers good volume for large projection units of any kind.
I reached the 555 Fifth Avenue Nobody Does It Like The WIZ. After being transferred three times I was told by "video Dan' that they were too busy to talk to me. Could I call back some other time. Sure. "When are you not busy?" "Er...just take your chances." Finally got Damien there, who informed me that if I was interested in HDTV I should probably not live in Manhattan. There is, according to this "expert," no HDTV cable signals in Manhattan, and CERTAINLY no over-the-air signals (which must disappoint those working hard in NYC on transmission). He had one out-of-town customer take home a 60 inch Mitsubishi to a mythical land that already had 7 DTV stations. Sorry, no sale in Manhattan.
I moved on to Queens. Surely that community would be far more advanced than those backward Manhattanites. The Astoria, NY WIZ proved to be helpful. From a willing Charles I leaned that there is no Cable serving HD in Queens expect from Madison Square Gardens on occasion. All the Ranger's hockey games, he informed me, are in HDTV, which you can get there in Queens, but maybe some other places too. HBO? No, you can't get it in Queens, but DirecTV has one channel, but its only for stores. Good news though--"CBS is delivering Jay Leno in HDTV every night!" Must be some interesting HD contracts floating around which we laymen are not yet privileged to know about. Beyond that, Charles resorted on professional "vagueness" about HDTV programming availability, and when pressed he suggested I call the networks for more information.
A good idea. So, I called Saul Shapiro at ABC. He seemed a bit rushed, as usual, but thought Queens could pick up the ABC New York station and believes that cable was delivering HDTV to Queens. Certainly Time-Warner was in some Manhattan neighborhoods with HBO's HDTV programming (now what am I to make of that expert advice from Damien?). Shapiro did note that FOX was now on-the-air in Manhattan, but they at ABC can't get the signal. "Is this that COFDM thing, Saul? Are you guys at the networks having second thoughts?" Shapiro didn't think there was any second thinking going on, and that the COFDM people were pretty much a little band of folk with limited Internet forum exposure. "Still, you wonder," he said "why the receiver manufacturers have not weighed in on this controversy." They have, Saul, at the NAB. Not one that we talked to thought that there was a reason to make any revisions in the standard. "It's all going to work as planned."
But, let's get back to retail where the rubber hits the road in all of this DTV stuff. From Carol at Staten Island I learn that MSG is carried on cable in there as is FOX sports! I called eight more of the WHIZ stores. All of them put me on hold for five minutes (my tolerance level before hanging up) and my $7,000 inquiries went completely unanswered.
Back to the signal side: What has HBO's costly move to five hour a day HDTV schedule meant to the over-all market? "I think the CBS deal (with Mitsubishi) was furthered by our moving into the HDTV marketplace." offers Zitter.
Any regrets about being so early in the HDTV marketplace? "No, it's in our genes to be early," he responds.
Both of their satellite affiliates--Hughes DirecTV and Echostar plan to carry the HDTV feeds (east and west) when the IRDs and HDTV receivers move into the commercial marketplace later this year.
Satellite operators have been pushing Congress for local station DBS carriage. Does the use of transponders for this vital side of their SDTV business threaten transponder space for the more limited HDTV services? "Both have said they will carry our signals in full HDTV when receivers are in the marketplace," advises Zitter.
DirecTV President Eddy Hartenstein told a packed house at the 6th Annual Denver DBS Summit last week that they had an 84% increase in subscriptions this last month over that of a year ago. "In 1998, we even beat our own projections by signing up over 1.15 million subscribers and over 2 million for the total DBS industry.
Hartenstein said industry predictions say there will be 24 million DBS subscribers in the United States by 2007, as well as 10 million in Latin America and 12 million in the Asia-Pacific region. Globally, the number of satellite subscribers could top 70 million, compared to 18 million at the end of 1998. These are, of course, all SDTV services and not HDTV. But it does indicate how many have the experience with satellite reception, and how many are in position to "see" those satellites.
Whether from cable or DBS, it's going to be SHOWTIME-HDTV beginning the first quarter of 2000. Both east and west feeds will rain down HDTV signals upon the willing, according to Mark Greenberg, Executive VP for Corporate Strategy and Communications for Showtime. They will also introduce later this year additional digital multiplex SDTV offerings designed to "expand the viewer's choice and convenience." Hmmmm now if we can just get retail doing a credible job...
Dale E. Cripps
Copyright 1999 Advanced Television Publishing. All rights reserved.
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