Video on Demand vs. High Definition Television
I was scanning an article in Broadcasting & Cable today called "A Guide to High-Def Highs." (sorry, subscription needed). While interesting for the topic it focused on (which networks are putting out worthwhile shows in HD), I found most interesting the following:
"It is starting to get crowded at the HD Inn. Regional sports networks are getting into the game, and some cable network,like ESPN, are even launching second HD networks. The bad news facing all of them: getting carriage. Cable bandwidth is still limited, and VOD services are competing for any available space."
Yes, there is only so much bandwidth to go around. And I have not heard from anyone I know inside the cable companies that there is any immenent problem. And there are other ideas being explored that also would require some of that bandwidth: ideas like Visible World's or Invidi's targeted advertising to the set top box.
In an environment like that would HD really rise to the top priority on the cable MSO's list? I doubt it. If bandwidth started to get scare, would there be another round of capital upgrades in the future at Comcast and Time Warner? I don't know, but for people looking for investment opportunities in companies that might benefit, it warrants keeping an eye on future developments.
Posted by admin on April 7th, 2005 :: Filed under Announcements
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