HDTV--the clincher in war between cable and phone?

HDTV -- THE CLINCHER IN WAR BETWEEN CABLE AND PHONE?
[SOURCE: C-Net|News.com, AUTHOR: Marguerite Reardon]
High-definition television could tip the balance between phone companies and cable operators as they compete for TV dollars. After years of hype, HDTV, with its enhanced picture quality and superior sound, is finally becoming a reality. Consumers are starting to buy new HDTV sets in droves. Providing those people with more than one channel of HDTV programming could become a key selling point for the phone and cable providers battling to sign up TV subscribers. "There's been a lot of talk about integrating all kinds of interactive features into TV," said Rick Thompson, a senior analyst at Heavy Reading, an industry analyst group based in New York City. "But in the short term, the biggest differentiator will be who has the best content package, and part of that will be how much HDTV you have." Phone and cable companies realize the importance of HDTV. But some providers may be in a better position than others to handle the increased demand for HDTV channels, which will eat up loads of bandwidth. "People today aren't choosing their TV service provider because of their HDTV offering," said Leichtman Research Group. "But they probably wouldn't go with a new provider who doesn't at least match or offer more than what they are already getting."
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