Audio Video News

Cable Television Laboratories, Inc. ("CableLabs") has issued a new set of specifications for high-definition-compatible set-top converter boxes. The Louisville, CO–based organization released its "Advanced Host and High Definition STB Host" specifications last week, describing requirements for retail set-top boxes that decode all formats of high definition signals used on digital cable plants. The specs are available to manufacturers, content developers, and the public through the OpenCable website.

"We have worked with consumer electronics companies on these draft specifications over the past two years, and with their invaluable input, the specifications now have reached a 'build-to' or 'issued' status," said Mike Havashi, Time Warner Cable senior vice president of advanced engineering technology. The collection of specifications provides a "road map for companies to create a wide variety of retail cable products that can fully support interactive services and digital high definition signals provided over broadband cable networks," stated an August 29 press release. The specifications define a "wide variety of alternate interfaces including IEEE-1394 with Digital Transmission Content Protection (DTCP), as well as the high-definition analog component interface (EIA/CEA-770.3-C), ensuring connectivity to all varieties of digital televisions and recorders."

New box for CableVision customers: Just a few days after announcing that it had cancelled an exclusive supplier deal with Sony Electronics, New York's Cablevision Systems said it would start buying digital cable set-top boxes (STBs) from Scientific-Atlanta, primarily the company's Explorer 4200 model. Thanks to some extent to its partnership with Sony, Cablevision has what many have called one of the most sophisticated digital cable services in the industry, with more than 200 cable networks, 1000 video-on-demand titles, and digital music. The company also has a "cash shortfall" of somewhere between $500 million and $1 billion for the 2003 fiscal year. The cash shortage was revealed at an August 8 investor meeting.

Cablevision hopes to cut the average cost of its STBs to about $215 by next year from the current level of $443, while keeping the digital TV surcharge at the present $9.95 per month per customer. The move could save the firm more than $45 million next year, some analysts believe. As of mid-summer Cablevision had 42,600 digital subscribers out of its total user base of three million, and was predicting 125,000–150,000 new digital users by year's end.

Cable out of favor with investors, but not with viewers: Major cable outlets have seen substantial ratings gains during the summer season from May 27–August 25, according to Nielsen Media Research figures released by Turner Research. Ratings for ad-supported cable networks (ESPN, TNT, FX, USA Network, etc) climbed by 9% from an aggregate of a 26.7 household rating to a 29.0, while seven English-language broadcasters (ABC, CBS, Fox, NBC, UPN, the WB Network, and Pax TV) dropped 10%, from a 22.6 to a 20.4, according to Nielsen figures provided by Lifetime Television. Cable's share rose from a 49 to a 53, while the broadcasters slumped from a 41 to a 37, the Nielsen group reported.

Yet another DVD format? Toshiba Corporation and NEC have submitted a new DVD format to the DVD Forum. This new format is incompatible with the Blu-ray standard for blue-laser DVDs proposed by Sony, Panasonic, and others, but would be compatible with existing discs, according to a late-August report from Tokyo. The Toshiba and NEC format also uses a blue laser, but would work better with existing red-laser discs than the Blu-ray standard. The proposed format increases the capacity of read-only discs to 15GB for a single-sided, single-layer disc and to 30GB for a single-sided, dual-layer disc, and pushes the capacity of read-and-write discs, which currently are single-sided with a single layer, to 20GB.

Current single-sided, dual-layer, read-only discs have a capacity of 8.5GB, while read-and-write discs (single-sided, single-layer only) can store up to 4.7GB of data. The increased capacity is said to be achieved by employing a blue laser and by utilizing the two companies' signal-processing and phase-change media recording technologies. Toshiba and NEC are also rumored to soon propose a 40GB single-sided, dual-layer, read-and-write disc to the DVD Forum.

Fire sale begins: Vivendi Universal will soon announce the sale of its 50% stake in Internet portal Vizzavi. The sale to venture partner Vodafone Group could yield as much as €150 million ($146.7 million), according to the financial press. New CEO Jean-Rene Fourtou is looking to sell "non-core assets" to reduce the conglomerate's €19 billion ($18.6 billion) debt burden. Vivendi is the parent company of French TV firm Canal Plus and US-based Universal Theme Parks, Universal Studios, and Universal Music, all of which have been rumored as possible sales targets.

Malaysia has begun a "nationwide crackdown" on commercial piracy of software, music, and movies, according to an August 31 report from Reuters. "Operation Genuine'' will involve some 300 officers from the Domestic Trade and Consumer Affairs Ministry as well as software experts from the Business Software Alliance (BSA), which represents US software publishers, said the report from Kuala Lampur. US trade losses due to the piracy of movies, music, software, and publishing materials in Malaysia last year rose to $316.5 million from $140 million in 2000, the report stated. "We have declared an all-out war,'' said Mohamed Roslan Mahayudin, the ministry's enforcement division deputy general. Last year, officials busted more than 2000 street vendors of illegal CDs, VCDs, and DVDs.

Digital video keeps on growing: Factory-to-dealer sales of digital video products, including DVD players and camcorders, posted significant gains in July, according to figures released in late August by the Consumer Electronics Association (CEA). Sales of DVD players hit 890,417 units—up more than 28% from the same period in 2001, the CEA reported, while manufacturer-to-dealer sales of camcorders grew by more than 21% to 353,493 units for the month. Year-to-date unit sales are also up, with DVD player sales up more than 41% over 2001 to 7,211,650 units. The CEA originally forecast an increase of 25% over year-end totals for 2001, but has revised that estimate to 40% based on sales so far this year. The trade group also reported an 85% surge in sales of digital television sets and monitors in June, for a total of $294 million.

DVD overtakes VHS: Only a few weeks after equaling videotape in popularity with consumers, the digital versatile disc has pulled into the lead, with sales of DVD movies now exceeding those of movies on tape. An August 25 industry report from Los Angeles predicts that Americans will spend nearly $3 billion more on DVDs this year than they did last, an increase of 50%. DVD players are now in about 35% of US homes, compared to 90% for VHS machines. DVD is "the most successful home entertainment device in history," said Warren Lieberfarb, president of Warner Home Video. "In five years, it has gone from zero to 30 million households, and a quarter of those have more than one DVD player. Nothing else has come close to doing that in such a short time, not CDs, not VCRs, not personal computers, not even television itself." In 2001, $10.3 billion was spent in the United States to buy copies of films for home use, of which $5.4 billion, or 52%, went for DVDs. Adams Media Research estimates that in 2002, $12.4 billion will be spent, with $8.1 billion, or 65%, going for DVDs. Lieberfarb predicts the complete disappearance of VHS within five years.

Finally, the machine that began the home video revolution comes to an end. Last week, Sony Corporation quietly announced the final 2000-unit production run of its legendary Betamax videocassette recorders, citing the huge popularity of DVD. Betamax broke open the home video market in the US, but despite its superior picture quality, never competed seriously against the Panasonic-backed VHS format. Beta never caught on in a big way with American consumers, but it did in other countries. Here it morphed into the still-popular professional Betacam line, which Sony still makes and supports. During the 27-year history of Betamax, Sony shipped a total of 18 million Betamax machines.