The 'Return' Of Hd

Cable World, August 25, 2003

Byline: IAN OLGEIRSON, KAGAN

Cable operators have mounted an HD push to match the threat from DBS, but the industry remains in an experimental phase with the model surrounding set-top boxes. HD capability adds roughly $100 to the cost of a traditional unit. While that cost has plummeted in the last 12 months, the increased capital has some operators squeamish. However, the elasticity to tack on additional lease fees for HD boxes could actually increase the return on investment from SD models because the entire lease fee stays in-house. It's notable that the HD lease fees are expected to decline rapidly in our ten-year outlook, as it becomes a more standard feature.

STANDARD SET-TOP VS. HD RETURN ON INVESTMENT