Overview

Just as the business model for corporations is changing, so may the business model for the broadcaster. If all goes as planned, the broadcaster will be able to offer information technology in a new perspective before the millennium. We may only see this model in the largest of the television audiences and only a few will be able to take advantage of the new services.

As soon as marketing and sales see new avenues for increased potential revenues, we can all expect the growth curve to shoot upward. Once the number of channels expands from essentially one to many, there will be an onslaught of hardware purchases to service those demands.

The first consumer DTV sets with 16 x 9 aspect ratios and HDTV capable displays were shown at the Consumer Electronics Show in Las Vegas in January 1998. These first sets, expected to be available in October 1998, will cost, on the high end, around $11,000. On the low end these high-definition capable sets will be around $3,000. The prediction was that second-generation sets at the high end are expected to drop by a factor of three and at the low end by a factor of two within the first year or so.

The launch of receivers and the availability of programming for both broadcasters and DTH satellite delivery systems will set the foundation for new growth. DirecTV made a profound statement by demonstrating live HDTV resolution programming at the January 1998 CES exhibition and then stated that by...