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HDTV Could Make All the Difference in Cable-IPTV Battle

6:45 am on June 22, 2006 | Category: Telecom Services, Television

After years of marketing hype, high-definition television (HDTV) services have finally started to become a reality for the average North American consumer. The promises of superior image and sound quality are finally coming true, prompting many customers to run out and buy all the hot new HDTV equipment.

This presents cable and FiOS television providers with the challenge of giving their customers a wide variety of high-definition programming. The ability to do this could ultimately be a major tipping point in the battle between traditional cable companies and their new IPTV rivals from the telecom industry.

“There’s been a lot of talk about integrating all kinds of interactive features into TV,” said Rick Thompson, a senior analyst with Heavy Reading. “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.”

The importance of HDTV has been realized by cable and IPTV providers alike, who see it as a way to sway the buying decisions of customers.

“People today aren’t choosing their TV service provider because of their HDTV offering,” said Bruce Leichtman, principal analyst at 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.”

As a whole, the cable industry is still a clear leader in the U.S. HDTV market, accounting for about 79% of subscriptions at the end of 2005. As FiOS-based IPTV services become available in more markets, however, cable giants like Comcast, Cox, and Time Warner will need to work hard to maintain this early lead.

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