Cable TV systems should be permitted to charge DTV subscribers an...

Speaking at the NAB Futures Summit in Monterey, Cal., he said a survey of digital set owners showed that 75% would be willing to pay an average of $110.20 per month for high-definition programming and that cable systems should “break precedent” and pay TV stations for digital content: “Why? Because the digital transition is profitless for the entire TV value chain.” He said networks now aired some HDTV programming “to make a positive impression on the FCC regulators… One TV executive told us confidentially that his network produces HDTV just to please the FCC.” If systems are allowed to charge for DTV, they should be required by the FCC to carry both analog and digital signals of local stations, Bernoff said. And, he said, cable payments to broadcasters would encourage the production of more high-definition programming and speed the overall transition to digital. Another benefit of charging subscribers for HDTV, Bernoff said: “Operators can slow or stop their basic cable rate increases, bringing down congressional and consumer blood pressure.” Mark Richer, pres. of the Advanced TV Systems Committee (ATSC), detailed to the Summit attendees efforts being made to develop new broadcast standards and the increased flexibility they would provide for broadcasters and set manufacturers. He said progress was being made with CableLabs to “harmonize” specifications for interactive TV.