Western Show Notebook

Television Digest with Consumer Electronics, Dec 20, 1999

Despite shift to L.A. from Orange County and dates so close to Christmas, Cal. Cable TV Assn. (CCTA) said attendance at 1999 Western Show increased slightly. Final numbers showed 31,208 attendees, up from 30,340 in 1998; vendors increased to 460 from 455 and sq. feet leased to 288,194 from 251,700. Next year show returns to L.A. but with earlier dates, Nov. 28-Dec. 1, then makes way back to longtime home in Orange County in 2001.

FCC Comr. Ness recognized cable industry's concern that DTV sets labeled "cable ready" may not contain full copyright protection and could mislead consumers. "The key is to have simple-to-understand labeling systems" along with consumer education so user "truly knows what he or she is buying," she said. Earlier, Comr. Tristani's senior legal adviser, Rick Chessen, said reports he had seen suggested box was on schedule for June retail sale. Ness expressed concern that copyright issue was delaying availability of DTV sets: "The copy-protection issues must be resolved... the process is taking too long." While understanding Hollywood's concern over easy reproduction of digital movies and other content, she said U.S. Supreme Court protects right of consumers to make copies for their own use.

NBC said it will offer 273 hours of 2000 Summer Olympic coverage on CNBC and MSNBC from Sydney, Australia. Network said all cable coverage, which will include finals of 30 Olympic events, will be on tape delay due to 15-hour time difference between East Coast and Sydney. MSOs have option of carrying Olympic feed or traditional signal, and NBC said so far AT&T, Cox and DirecTV have committed to Olympic package.

Resignation over weekend of NCTA Vp-Communications Josie Martin created minor buzz in L.A. In job only about year, with background on Hill and at Red Cross, she never seemed to integrate herself into cable industry, according to industry officials. Others said she didn't enjoy open access debate, and consensus was she didn't seem happy in her job. No one we spoke with expressed surprise at departure. She gave notice for year-end, didn't indicate what her plans were. NCTA Pres. Robert Sachs said Jim Ewalt, who moved to NCTA after CATA merger, will hold post on interim basis until replacement is found, probably in about 3 months.

Petition for categorizing ISP service as video service under leased access rules appears dead at FCC, source said. Cable Bureau reportedly has recommended to 8th floor that petition by Internet Ventures be rejected because Internet wasn't dealt with in 1992 Cable Act, but commissioners advised Bureau to use another reason to reject petition because other services such as direct satellite also weren't addressed expressly but have been acted on by FCC. Commission is expected to release its conclusions on petition late this year or early next.

Developers of interactive TV defended their efforts at Western Show, insisting technology exists and viewers want service. "You ask people if they like interactive TV and they say 'no' because they've never experienced it," said Intel Mktg. Dir.- Home Products Group Cathy Fredericksen. "But once you put it in front of them they're jazzed." Oracle Vp-Interactive TV Mark Porter said public wants it because in only few weeks Oracle- supported OpenTV interactive service in U.K. will be in 2 million homes. Microsoft Gen. Mgr.-TV Platforms Phil Goldman said viewers already are embracing that where services have been deployed. He said power of TV led Microsoft to change its 20-year mission statement from focusing on PCs to calling for software distribution on multiple platforms.

Motorola continues to lead cable modem market with 37% unit share and 38% revenue share (310,000 modems and almost $80 million), with Arris/Nortel at 12%/9%, Gartner Group said in study of 3rd-quarter 1999. Com21 had 10%/10%, followed by Terayon (8%/8%). DOCSIS (Data Over Cable Service Interface Specification) modem shipments for quarter topped first half of 1999, led by General Instrument with more than 21% of units and almost 21% of revenue (65,000 modems and $16.4 million) -- DataQuest, 408-468- 8000 or www.dataquest.com.

Automated equipment manufacturer Ad Systems will merge in early 2000 with digital video delivery company AmeriVision Media, companies said. Terms weren't disclosed.