Sachs: Broadcast HDTV carriage in works

[Gregg Lengling]

Bill McConnell
Broadcasting & Cable
1/17/2003 8:00:00 AM
   Rules governing whether cable companies will be required to carry broadcasters' high-definition signals on the basic tier after the digital-television transition is complete are a "work in progress," National Cable & Telecommunications Association president Robert Sachs told reporters Thursday.

Finding "common ground" with TV stations over high-definition and digital TV is a top priority for the cable trade group, but those talks are just beginning, Sachs said during a year-in-review briefing.

Cable is eager to push higher-priced HDTV tiers to boost revenue, and broadcast HDTV may be one of the key offerings for the service, industry analysts said.

Cable MSOs must carry broadcast digital-TV signals on the basic tier, but whether HD signals would have to be duplicated there is up for debate.

Broadcasters, however, aren't thrilled about the idea of segregating to cable's upper tier what may be a prime audience draw one day.

Cable and TV group executives met in New York to lay groundwork for future talks over digital-TV carriage, but little progress is expected soon.

On the cable industry generally, Sachs said 2002 was "really a paradox," but the industry is settling down after the tumult of Wall Street declines and revelations of accounting problems.

On the upside last year, subscriber growth was strong for add-on services such as digital-cable tiers (up 26 percent), cable-modem service (up 57 percent) and cable-telephony signups (up 47 percent).

Capital spending on upgrades was $14.6 billion, or $200 per customer.

That outlay should decline in 2003, and companies will reap the benefits of the buildout.

Regarding threats from Senate Commerce Committee chairman John McCain (R-Ariz.) to reregulate cable rates, Sachs said the NCTA "looks forward" to showing lawmakers how programming and other costs are behind the subscription-price hikes.