Cable Compatibility Agreement

New generations of television products should be easier to connect to cable systems and easier to use, as a result of an agreement signed Thursday, December 19, by cable providers and electronics manufacturers.

Major cable companies and consumer electronics makers have signed the agreement, which includes technical standards for cable systems and "cable-ready" DTV products. The specifications include encoding rules for recording and viewing various types of video content, secure interfaces for digital recorders, and a proposal allowing consumers to transfer content within home networks.

Two-way communication between consumers and cable providers is included to enable pay-per-view (PPV) and video-on-demand (VOD) services. No restrictions seem to apply to digital video recorders. Apparently, DVRs will be able to capture content at any level of resolution, but may not be able to export it to other devices. The entertainment industry has pushed hard for technologies that would protect copyrighted material from piracy, including blockbuster films broadcast in high definition. (See related story.)

Analog outputs on receivers will still be permitted, but it is unclear whether those outputs will deliver high-definition signals. Devices built to the new specifications should begin appearing in 2004; the inclusion of many new features could eliminate the need for set-top boxes, a move that would streamline TV installations and operations for most consumers.

The deal leverages a controversial mandate from the Federal Communications Commission (FCC) requiring digital tuners in new television sets, a requirement that produced a sustained howl of protest from the consumer electronics industry because it would add unnecessary costs to new products. Equipment built under the new agreement could be sold with a sales pitch about saving money by returning set-top boxes, most of which are rented from cable providers.

Signees from the cable industry include Advance/Newhouse Communications; Cable One, Inc.; CSC Holdings, Inc. (Cablevision Systems); Charter Communications, Inc.; Comcast Cable Communications, Inc.; Cox Communications, Inc.; Insight Communications Co.; and Time Warner Cable. These companies account for 75% of the USA's cable coverage. Consumer electronics companies that have signed include Hitachi America Ltd.; JVC Americas Corporation; Matsushita Electric Corporation of America (Panasonic Electric Corporation); Mitsubishi Digital Electronics of America, Inc.; Philips Consumer Electronics North America; Pioneer North America, Inc.; Runco International, Inc.; Samsung Electronics Corporation; Sharp Electronics Corporation; Sony Electronics, Inc.; Thomson; Toshiba America Consumer Electronics, Inc.; Yamaha Electronics Corporation, USA; and Zenith Electronics Corporation. Other companies are expected to follow.

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