Cable sees opportunities in digital television

The cable industry is in new Orleans for its annual convention and spirits are bright because cable operators believe the transition to digital television will benefit them. Though most cable operators already offer digital video to their customers, the government-mandated transition offers a chance to win new first-time or lapsed pay-TV subscribers. An SNL Kagan study conservatively estimates that 10 percent of those over-the-air U.S. households will opt for pay television after the transition, with cable receiving the majority of converts and satellite and phone companies splitting the remainder. Analysts anticipate a surge in consumers switching to digital television late in the December holiday season, with high-definition, flat-panel TV sets acting as a catalyst. According to Frank Magid Associates, 25 percent of U.S. households now have HDTV sets and growth is accelerating. Nearly four in 10 HDTV set owners plan to purchase another HDTV set in the next 12 months. Competition between cable and satellite will heat up over the coming year as they vie to offer more high-definition content to win consumers. Comcast offers hundreds of HD movies and TV shows for free and on-demand viewing.
http://www.reuters.com/article/technologyNews/idUSN1521925920080516