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Lessons Learned: HDTV Hype Needs a Boost
It's been clear from our last few "Spot Checks" that CSRs are not pushing HDTV, concentrating instead on digital or premium offers. But there are plenty of reasons why MSOs should be training their CSRs to promote HDTV, and they don't all center on the Powell Plan. Take Thomas Weisel's new white paper, which identified HDTV as one of the "biggest sleeper issues for multichannel operators over the next 24 months." It believes HDTV could easily deliver a 12%+ incremental ROI, and in most cases, 20% or more (i.e, ROI improves to 27.3% in the model by adding $2/month for HDTV service). Clearly, cable has the bandwidth advantage, with TWP noting that limited spectrum could make HD local signals difficult for DBS. Cable also has cheaper customer premise equipment, $350 compared to the $500 HD- capable receiver DBS subs must buy along with a multisatellite dish antenna ($150), an additional LNB ($60) and a UHF...