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finds a friend in satellite
EchoStar hawking cheap high-definition receivers
By David Everitt
Remember HDTV?
Just think back a few years ago. The broadcast world was abuzz with all that high-definition ballyhoo. The TV industry had finally agreed upon a technical standard, coupling HDTV’s dramatically enhanced visual information with digital transmission. Manufacturers were ready to roll out digital, high-definition TV sets.
Broadcasters acquired second channels for transmitting digital programming. And not only that, the federal government was full-square behind it all, championing HDTV at every opportunity.
According to all the best predictions at the time, high-definition television should be all around us by now.
So much for predictions.
HDTV is the rarest of broadcast novelties these days, confined primarily to HD broadcasts of the Super Bowl that virtually nobody gets to see in HD.
Now the FCC has butt-kicked high-definition further into obscurity.
Yesterday the FCC announced that cable companies will not have to comply with must-carry rules when it comes to digital signals. That means cable operators can’t be forced to carry broadcasters’ second digital channels in addition to their original analog signals.
This ruling, according to broadcasters, will slow down the HDTV roll-out even further. Which would bring us to a rate of progress that’s just a tad slower than glacial.
It would seem that the high-definition picture could not get much dimmer.
It would seem so, but note that this is the time that EchoStar has chosen to commit itself to HDTV distribution.
"It has become clear that there is a lot of demand for high-definition," says EchoStar spokesman Marc Lumpkin. Exactly where the company has detected this demand is a little hard to pinpoint, but Lumpkin’s next comment might be a little more revealing. "EchoStar has always been a leader in new technologies, and we want to be ahead of the curve."
Basically, the company seems to be taking a leap of technological faith. To do this, the DBS provider announced last month that it is offering its customers an HDTV satellite receiver for $499. And For a price of $149 customers will now be able to receive local off-air HD programming as well as other HD satellite TV channels.
Receive HDTV programming? Like what, for instance?
To be exact, the EchoStar tuner will bring in four channels: HBO, Showtime, Dish-on-Demand pay-per-view and an HD demo channel.
According to Lumpkin, HBO is formatting a little more than half of its movies in high-definition, while Showtime has reached a slightly lower level. The PPV channel offers four or five movies a month. As for the demo channel, it will feature special high-definition footage shot by EchoStar.
Along with sports events, this will include such things as panoramic vistas of the Wyoming Rockies and coverage of space shuttle launches; in other words, a sort of small-screen Imax experience.
By taking this HD plunge, EchoStar is following the example of its DBS competitor DirecTV, which also offers HBO and a PPV channel in the enhanced format.
Is this where we can find some glimmer of hope for HDTV, in nontraditional distribution outlets as opposed to over-the-air broadcasts?
Obviously, the satellite industry is willing to take a small gamble in this area. You can also pick up at least some hopeful noises from the cable industry. According to a spokesperson for the National Cable Television Association, such channels as HBO, A&E, MSG, Showtime and Discovery are making serious investments in high-definition productions.
Perhaps the most high-profile example is the HDTV formatting of "The Sopranos" by HBO.
In the broadcast network realm, ABC will be airing "NYPD Blue" this month in high-definition. But of course, this doesn’t mean a whole lot if this enhanced format isn’t digitally transmitted to the home and then displayed on a digital, high-definition set. A&E has just started airing "100 Centre Street," shot on high-definition video, but without the digital pipeline and the right kind of TV sets, it just looks like above-average video, not a revolution in broadcasting.
The chicken-or-egg debate can go on forever: Is the problem a lack of HD programming or a lack of HD distribution?
One thing is clear, according to Haig Hovaness, program director of KPMG Consulting’s digital media institute. The satellite industry has at least done more than over-the-air broadcasters.
"In the beginning no one thought the satellite industry would be the spearhead in this area," Hovaness says.
"Everyone thought the emphasis would be on broadcast, where the government was applying so much pressure. But people underestimated the lack of consensus among the multiplicity of players. Satellite broadcasters are stealing a march on the terrestrial guys."
Satellite should also have an advantage over cable, Hovaness says. In theoretical terms, digital cable is as capable of delivering high-definition, but not in practical, operational terms.
"One satellite system can cover the entire country. One upgrade and – bam – it affects all the company’s customers. Cable systems, on the other hand, are a patchwork of hundreds of operators. Yes, cable can deliver. No, it can’t move as quickly as satellite."
Still, don’t expect HDTV to be the next sensation to sweep the nation. The field is dogged by unnecessary complications. The cause, according to Hovaness, was a lack of regulation during HD’s formative months.
Deregulation was all the rage when the standards for HDTV were being set – or, more accurately, not being set. "I think the timing was bad for broadcasting," says Hovaness. "The FCC decided to stand back and let the industry work out the standards. I believe the FCC could have taken more of a hand."
As a result of the deregulated approach, we now have a wide array of high-definition formats, using both progressive and interlaced scanning systems and incorporating different ways of presenting visual information, each using a different number of lines.
Not only is there confusion in terms of which type of format to use, there is no single, streamlined way of integrating high-definition service into the customers’ home entertainment systems. Customers need new set-top boxes, in addition to the new boxes they need for every other enhanced service that comes along. And the EchoStar HD tuner requires a second dish.
"It’s reached a point," Hovaness says, "that people have to become system operators in their own homes. With each extra box, the complication in wiring the system becomes greater. Eventually you’re going to need some kind of switcher."
On top of all that, it’s difficult to predict when a new set will become obsolescent.
"Consumers respond to confusion by putting away their wallets," Hovaness says.
He’s hopeful that TV-set manufacturers may "bring some pressure to bear" to integrate new services in a simpler way that will make it easier for them to sell advanced sets. At the same time, though, he’s not anticipating a quick solution.
"Our forecast? Continued turmoil. HDTV will be slow to mature as new innovations keep piling up."
Hovaness also thinks that broadcasters of all kinds may have to be wary of technological developments in other quarters.
"There could be some real surprises. There’s a chance digital TV could become obsolescent before it reaches 50 percent of the households. When people get enough broadband capabilities, they’ll have access to a magical world of a million channels."
-David Everitt covers television and technology for Media Life, writing from Huntington, New York.
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