Microsoft's Digital Cable Box Deal Sparks Controversy Over HD TV

Microsoft's proposal to push for lower-resolution transmission formats in digital TV broadcasts has sparked a heated debate between the company, broadcasters, and consumer electronics manufacturers. The issue centers around the company's agreement with Tele-Communications, Inc. (TCI) to supply digital cable boxes that can handle lower-resolution signals, but not the high-definition (HD) signals that many broadcasters plan to air.

As a result, Microsoft and its partners in the computer industry have been urging broadcasters to abandon HD TV broadcasts, citing the extra memory and components needed to receive such signals on personal computers. However, broadcasters and consumer electronics manufacturers have rejected this proposal, arguing that it would unfairly limit consumers' access to high-definition content.

Key Takeaways:

• Microsoft has been pushing for lower-resolution transmission formats in digital TV broadcasts, citing the extra memory and components needed to receive HD signals on personal computers.
• Tele-Communications, Inc. (TCI) has agreed to supply digital cable boxes that can handle lower-resolution signals, but not HD signals, sparking controversy among broadcasters and consumer electronics manufacturers.
• The Consumer Electronics Manufacturers Association's Gary Shapiro has criticized Microsoft's proposal, stating that it would deny 14 million TCI customers a chance to see HD TV, calling it a "huge tragedy for the American consumer."
• CBS television network and other broadcasters have announced that they will broadcast HD signals in the interlaced format, which is the one preferred by many in the television industry.
• Sony Electronics Corporation and others have raised questions and complaints about the Tele-Communications-Microsoft arrangement.
• The digital cable boxes are intended primarily for use with conventional televisions, not digital models, and will only convert programs for display on analog sets if they are broadcast in the lower-resolution progressive format.

Statistics:

• 14 million: The number of TCI customers who may be denied high-definition TV access due to Microsoft's proposal.
• 6-8 months: The time frame when broadcasters in the nation's 10 largest cities plan to put high-definition signals on the air.
• 2: The number of channels of high-definition programming that HBO has announced it will transmit starting this summer.
• "Dozens": The number of additional channels that can be offered by using digital compression in digital cable boxes.

Sources:

• Gary Shapiro, Head of the Consumer Electronics Manufacturers Association
• Craig Mundie, Senior Vice President for Microsoft
• Leo J. Hindery Jr., President of Tele-Communications
• David Beddow, Senior Vice President for Tele-Communications
• Susan Ness, F.C.C. Commissioner
• National Association of Broadcasters
• Sony Electronics Corporation
• CBS Television Network