from skyretailer.com
Report: DTV Deadline Ignites Pay TV Boom
The deadline requiring conversion from analog to digital TV broadcasting
will be a bonus for U.S. pay TV providers, according to a new report
from technology research firm Strategy Analytics (SA). The research,
"Digital TV in the U.S.: 2009 Deadline Creates Windfall for Cable and
Competitors," predicts that the February 2009 cut-off date will force
millions of households served only by free analog broadcasts to finally
sign up for multichannel service from cable, satellite or telecom companies.
According to the report, the number of U.S. households using some form
of digital TV will grow from 57 million today to 77 million by the end
of 2008, just two months before the new deadline.
SA says cable operators are likely to benefit the most from the
transition because the cut-off date will increase adoption of digital
cable services.
"Having a firm DTV deadline in place will sharply accelerate the
industry's migration to an all-digital platform," says James Penhune,
director of Strategy Analytics broadband media and communications (BMC)
research program. "Penetration of digital service will grow from less
than half of all cable customers today to nearly three-quarters by 2010."
The deadline also will boost adoption of satellite and telco-delivered
TV, but not on the same scale as cable, which will draw upon its huge
base of analog customers. To maximize this opportunity, the firm says,
cable's strategy and pricing structure for digital cable should target
customers who have not previously used pay TV. This means digital
service pricing at much lower rates than those available today, as well
as bundled service package offerings of TV, broadband internet access
and internet telephony.
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