NAB07: Gefen’s Wireless HDMI is a Work in Progress

At NAB Gefen displayed a couple of long-overdue technologies for transmitting HDMI over longer distances, one wireless and one using coaxial cable. The first method is wireless using a frequency band between 3.3ghz to 3.5ghz, transmitting HDMI video over a distance of about 60 feet. We actually saw it transmitting over a distance of about 10 feet, but the video looked clean without any visible artifacts. Booth reps said that the maximum rez is 1080i, but the company’s working on a 1080p version that may use a pair of transmitters to pump the higher resolution through the air. That’s vapor so far, though—Gefen didn’t have that 1080p version at the booth.
How did that second device, pumping HDMI over coax work?
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Gefen HDMI

Wa saw HDMI transmitting over a coaxial cable that was about 20 feet long, and that looked like it was unfettered by the transmission, too. HDMI over coax? Not a bad idea, letting you use longer runs (up to about 300 feet) of existing coaxial cable to transmit HDMI video and audio. Hey, that’s long enough for even the biggest cribs. Boothsters say the coax tech “should be ready” to rock HDMI 1.3, though they haven’t been able to test that yet. We’ve seen the wireless HDMI box available for pre-order, but the company says both the wireless and coax products will be available in July, each for around $700. – Charlie White and Curtis Joe Walker

Cable seeks tech solutions to expand bandwith

By Yinka Adegoke

NEW YORK (Reuters) - U.S. cable television service providers are looking to new technologies to help upgrade their networks, hoping to avoid expensive capital outlays that could spook investors.

As demand grows for bandwidth-hungry services like high-definition television and faster Internet access, the pressure on service providers has helped boost the fortunes of cable technology companies that offer a cheaper solution to building bandwidth without having to lay new cable.

One such supplier is BigBand Networks Inc. , which offers a technology called switched digital video, used by operators to gain more bandwidth by only delivering channels to homes when a viewer tunes in to them.

Shares of BigBand, which went public last month, soared more than 30 percent on their Nasdaq debut. Clients include Comcast, Cablevision Systems Corp. and Time Warner Cable Inc. , which has a 2.9 percent stake in BigBand.

Another company that has piqued investor interest is Vyyo Inc. , whose shares have risen more than 60 percent in the past month. Vyyo attracted an additional $35 million in funding from Goldman Sachs in late March.

“Cable is going to have to invest in some way in all of these different technologies until they make the leap to full fiber,” says Cameron Cooke, an analyst at Janco Partners. “I’m thinking about ten years from now you’ll start to see cable operators taking cable into the home.”

A typical cable system usually operates at 750 to 860 MHz with around 80 channels in analog video, or twice that with digital, as well as video-on-demand, digital phone and high speed Internet.

Analysts say this is adequate for today, but competition is intensifying as rival telephone companies Verizon Communications Inc. and AT&T Inc. invest billions of dollars in laying new fiber optic networks to offer better and faster services.

Satellite TV providers DirecTV Group Inc. and EchoStar Communications Corp. are also aggressively rolling out high-definition TV channels.

“We believe cable will need to manufacture incremental bandwidth over the medium to long term in order to remain competitive,” Spencer Wang, an analyst at Bear Stearns, wrote in a research note last week.

“In the short term, the greatest concern is high definition TV, given growing HD TV set penetration and DirecTV’s plans to offer over 100 national HD feeds by the end of this year,” said Wang.

These competitive forces, coupled with cable’s plan to start selling more services to small and medium-sized companies, mean the need for extra bandwidth is imperative.

But investors who had witnessed cable’s last spending spree are easily unnerved by the prospect of another major investment. The cable industry collectively spent around $100 billion laying upgraded cable systems during the 1990s, collecting a mountain of debt that they are still paying off.

Reflecting these jitters, when the largest U.S. operator Comcast Corp. forecast higher-than-expected 2007 capital spending in February, it overshadowed record profits and sent the stock down more than 3 percent.

Therefore, the focus this time round is on affordable solutions that are as much about keeping costs down as they are about improving technology.

According to analyst Michael Arden at ABI Research, switched digital deployment could cost an operator as little as $5 to $10 per household, compared to $1,000 if new cable has to be laid.

Vyyo Chief Executive Wayne Davis says his company’s technology, called spectrum overlay, helps operators increase the raw bandwidth of their networks by as much as 3 GHz. It could on average cost around $125 per household

DirecTV And Echostar: The Crystal Ball Approach

The folks over at Cowen & Company have a novel theory about the future of satellite TV. The research operations has a “neutral” on Echostar (DISH) and DirecTV (DTV) with price targets at about the point where they trade now.

But, the backbone of the analysis assumes that Wall St. can know how the video market will look in 2010. Cowen claims that AT&T (T) and Verizon (VZ) will do so well at marketing video to consumers that “We expect telecommunications companies to gain up to 20 percent share in the 38 million homes served by 2010,” according to an interview with The Associated Press.

There is nothing wrong with making predictions about things that will happen three years in the future, but it is probably a horrible way to make investment decisions. The Cowen theory does not say much about what will happen with cable or why it thinks that satellite TV and cable will lose so much share. Maybe the big telephone companies will give their service away.

NDS Third Quarter 2007 Earnings Conference Call

(pressebox) London, UK, 17.04.2007 - NDS, the leading provider of technology solutions for digital pay-TV, announced today that it will release its third quarter 2007 financial results on Tuesday May 1. Please refer to call details below:

NDS will conduct a conference call to discuss the company’s third quarter 2007 financial results. The details of the call are as follows:

Earnings Release:

Tuesday, May 1, 2007

8.00am (BST)

3.00am (EST)

Conference Call:

Tuesday, May 1, 2007

2.00pm (BST)

9.00am (EST)

Hosted by: Dr Abe Peled (NDS Chairman and CEO)

and Mr Alex Gersh (NDS CFO)

The live webcast and conference call will be available at: investor.shareholder.com/nds/webcasts.cfm starting at 2.00pm (BST) Tuesday, May 1, 2007. Please register for the event now by clicking on the ‘Third Quarter Results 2007’ link on that page. For those of you who are not able to attend this live broadcast online, the presentation will be recorded and available for viewing on the same page three hours following the original broadcast.

An audio replay will also be available on nds.com from midday (UK time) May 2, 2007.

NDS Group plc (NASDAQ: NNDS), a majority owned subsidiary of News corporation, supplies open end-to-end digital technology and services to digital pay-television platform operators and content providers. See nds.com for more information about NDS

DirecTV, Havoc Team on Interactive TV Program, “Havoc on The 101″

–Viewers’ Text Messages Determine Program’s Schedule of Music Videos

Directvhavoca2007 Satellite TV provider, DirecTV, is teaming with Havoc, a multiplatform programmer that specializes in indie music and action sports, to offer an interactive program on DirecTV’s original entertainment channel, Channel 101. Entitled “Havoc on The 101,” the new program features music videos from indie bands and action sports clips. Viewers are invited to use their mobiles to text in votes, which determine the show’s video line-up in real time. In addition, the show allows viewers to “chat” by texting in messages that appear on the left side of the screen as the videos play (note: the show’s SMS voting and chatting functionality is available to subscribers of a number of wireless carriers, including Cingular, Verizon, T-Mobile and Sprint). The show offers a total of 28 hours of programming every week, consisting of four daily, hour-long episodes each dedicated to a different music genre. Viewers can access its video line-ups in a dedicated area of Havoc’s Web site (havoctv.com/101). “DirecTV loves music and The 101 already has one of the largest line-ups of live music programming in the US, so it’s no surprise that we are now adding to that leadership position by partnering with Havoc TV,” Eric Shanks, DirecTV’s EVP of entertainment, said in a prepared statement (note: for an in-depth interview with Shanks, see [itvt] Issue 6.99). “Now music fans have the power to decide what they want to watch, when they want to watch it. With this addition to the line-up, The 101 now dominates the competition with the largest selection of interactive music programming in the country as well.”

PixelPlay Launches Slingo ITV Games on EchoStar’s DISH Network

Pixelplayslingo2007sm_2 PixelPlay, the interactive TV games and portal-development company which was formed in 2005 via the merger of Pixel Technologies and PlayTV, and which has a long-standing relationship with US satellite TV provider, EchoStar, is launching a series of branded games as part of a worldwide exclusive ITV partnership with Slingo, Inc., a company best known for its flagship gaming format, which combines elements of Bingo with slot games. The first two games to launch as a result of the partnership are “Slingo Classic” and “5-Card Slingo,” which are available on PixelPlay’s DishGAMES subscription games service on EchoStar’s DISH Network platform. The companies say that they will launch additional Slingo-branded games on other North American ITV platforms later this year. “PixelPlay’s goal of working with the most innovative and popular casual gaming brands for our ITV services makes working with Slingo a natural fit,” PixelPlay CEO, Ron Chaimowitz, said in a prepared statement. “By partnering with the Slingo brand, we continue to build our impressive and industry-leading library of branded games for our DishGAMES service on DISH Network and other ITV game services throughout the world.”

Local TV stations face Net threat
Network affiliates watch prime-time content like Fox’s 24 go online and wonder where they fit in.
By **** Sandoval
Staff Writer, CNET News.com
Published: April 17, 2007, 4:00 AM PDT

Local TV stations face Net threat

LAS VEGAS–The Internet is the cause of much fear and loathing here at this gathering of broadcasters.

Some attendees of the National Association of Broadcasters conference this week are worried that local television affiliates will be the next business species to be endangered by the Internet.
High Impact
What’s new:

Local television affiliates are watching prime-time content like Fox’s 24 go online and wonder if they’re the next business species to be endangered by the Internet.
Bottom line:

The Web could give networks even more clout when cutting deals with their affiliates. But the news isn’t all bad: The overall industry is continuing to grow, and the switch from analog to digital could mean a big payout.

The warning signs are ominous for local TV outlets. Last month, NBC Universal and News Corp., parent company of Fox Broadcasting, helped establish a new online video network that will distribute full-length movies and TV shows across some of the top Internet portals. CBS announced its own video network last week.

Is there a place in this direct-to-consumers business model for local TV stations?

“Plenty of people are worried,” said Richard Jones, general manager of Bay City Television in San Diego, which oversees the Fox affiliate in San Diego. “It’s still so new nobody knows for sure what’s going to happen. But there is some real concern about shows that have been seen a lot of times on the Web and whether it will affect ratings.”

The pressures building on affiliates hit home for Jones on a recent flight when he noticed the man sitting beside him was watching Fox’s 24.

“He told me he missed the show during the week so he downloaded the episode on his iPod,” Jones said. “He wanted to get caught up by the time Monday’s new episode aired. That’s what we’re dealing with.”

Certainly, the outlook for regional broadcasters appeared troubled long before the Web. Over-the-air broadcasters have been challenged by cable and satellite distributors for decades and for the past five years by DVD sales. The Internet is just the latest technological threat to come along and carve another slice from the $75 billion market for TV advertising.

It may also be the worst. A long list of rivals–mobile carriers, Apple, Joost, YouTube, NetFlix, TiVo, Sling Media and others–are all offering audiences alternatives to traditional broadcast TV. And most of the newcomers can offer features like on-demand viewing.

Two decades ago, it was a different story. Affiliates wielded much more clout because the networks needed local stations to promote and broadcast their shows around the country and paid dearly for that. The affiliates also represented a bustling market for reruns.

Now some wonder whether the Web gives networks even more clout when cutting deals with their affiliates.

“It’s a question of leverage,” said Doug Wills, a former spokesman for the NAB, who is now a marketing executive for Redback Networks, which offers video-centric routers. “Virtually all the networks have announced broadband offerings in the last year. There is no question that within 10 years people will be getting high-quality video from the Web. The temptation is probably there for the networks to ask their partners to pony up more money.”

Calls to CBS, ABC and NBC were not returned Monday.

Among the nation’s top four networks, Fox has shown the most willingness to cut its affiliates in on Internet revenues. Last month, Fox announced a landmark plan to distribute shows such as 24, Bones and Prison Break to the Web sites of 200 affiliates. Fox will also share ad revenue generated from the online offering.

Some local broadcasters, however, are trying to be creative as they confront Internet challenges.

Diane Sutter, CEO of MyTv, which operates Boston’s Channel 50, has asked viewers to produce their own TV shows; her station will broadcast the best.

“It’s silly to focus on which formats or mediums are better,” Sutter said. “We should be focusing on enhancing viewer experience using broadcast, Internet, podcasts and whatever else we can.”

The news isn’t at all bad for local affiliates. The overall industry grew by 8 percent last year, and many are expecting continued growth this year. The switch from analog to digital signals could also represent a big payday for local broadcasters. In March 2009, broadcasters must switch to digital signals, and some local affiliates may find a market for the spectrum they own but don’t use, said Steve Carlston, managing partner of VegasTV Partners, the parent company of KTUD in Las Vegas.

“It’s kind of a burgeoning territory,” Carlston said. “People have said cell phone companies as well as others may want our extra space. It’s still early and we haven’t made it the highest priority, but we’ll definitely start taking a good look at the potential market soon.”

Could the next big push from broadcasters on Capitol Hill surround their desire to obtain multicast must-carry mandates for cable?

During his opening address to attendees at this year’s National Association of Broadcasters convention in Las Vegas, NAB President and CEO David Rehr said the group has started to take its multicast “message” to Congress, and that the effort has “been well received” by lawmakers.

In his speech Monday, Rehr also took on cable industry assertions tied to multicasting, in which digital TV spectrum is split into multiple streams.

“This is not a case where the pie is only so big and we want to eat the cable companies’ slices,” said the NAB executive. “Through the magic of compression technology, we are making the pie bigger by adding extra slices, extra programming. The cable companies intend to strip out our new programming because we’re in competition.”

Rehr added, “We’re not asking to take someone else’s property or programming. We’re simply asking that the cable companies not take ours. We’re simply asking that they do not take the anti-competitive step of stripping out our signals.”

And, as expected, Rehr criticized the proposed merger between XM and Sirius, a $13 billion deal still awaiting the regulatory OK. He said the transaction will not win approval.

“In 1997, when the Federal Communications Commission authorized two nationwide satellite radio operators, it specifically prohibited them from merging,” Rehr said. “The bad business decisions of XM and Sirius should not be rewarded with a government bailout in the form of a monopoly.”

In an admittedly “skewed” letter to the Federal Communications Commission, a high-profile Clear Channel Radio executive voiced opposition to the proposed $13 billion merger between Sirius and XM. Last week, the FCC’s Deborah Tate received talking points against the proposed merger in an attempt to influence the commissioner with the company’s position on the proposal.

According to PublicIntegrity.org, Clear Channel Vice President Thomas English wrote three possible responses aimed at helping the commissioner resolve previous statements in favor of relaxing media ownership limits. In the letter, English asks Tate how she “reconcile(s) your past recognition of all the entertainment options like iPods, internet radio, satellite radio, etc. available to consumers as one of the reasons for relaxing local radio ownership rules with your present concerns with a merger of XM and Sirius being a monopoly?”

Answering his own questions, the Clear Channel VP admits that the responses provided “were composed by our Government Affairs folks so they might be a little skewed toward our specific goals.”

In a strange tactic, English wrote three answers in the first person beginning with: “My position opposing the XM/Sirius merger and supporting a significant relaxation of local radio ownership rules is completely consistent with my primary guiding principle: avoid government action that seriously distorts the marketplace.”

English went on to write, “My main concern is how can free radio survive when a combined XM/Sirius would control more spectrum in every market in the country than the entire AM/FM band combined?” The exec also wrote, “I consistently oppose a regulatory system that would disadvantage free, terrestrial broadcasting.”

One major issue with English’s letter is that by law, anyone who wishes to communicate with the FCC in a formal proceeding must file an ex parte presentation - a procedure that documents outside parties’ communication with the agency. A spokesperson from Tate’s office said it is unknown why Clear Channel submitted talking points to the commissioner and disregard standard procedure.

The Senate Commerce Committee will be holding another hearing on the proposed XM/Sirius merger today at 10 a.m. ET.

The National Association of Broadcasters continues to bombard members of Congress with anti-merger sentiments as Sirius and XM prepare to move forward as a unified company. In the latest round of attacks, NAB officials sent two new documents to congressional staffers highlighting more opposition to a merged satellite radio entity.

The first document NAB said opposes the merger came from Philip Napoli, director of the Donald McGannon Communication Research Center at Fordham University. In his report, Napoli claims “the public interest remains better served by the preservation of competing service providers seeking to provide the best possible service at the lowest possible price.”

Also jumping on the anti-merger bandwagon is former Federal Trade Commission chair James Miller, who wrote in an opposition letter that “the merger of XM and Sirius would be contrary to the public interest.”

Satellite radio executives responsible for testifying on behalf of the merger have repeatedly said consumers would not be harmed by the deal and that the marketplace will dictate the price of services. Although the proposed merged company has speculated that it would create a higher-tiered programming package, officials have noted that current subscription rates would remain after the deal is complete.