Hard-Copy Distribution
VHS tape spawned the videotape rental industry over 25-years ago. DVDs have now become the new standard because (like CDs) they provide higher quality, lower cost and higher margins. However, there is no standard today for HDTV hard-copy distribution.

New compression solutions will allow 90+ minutes of quality HDTV to be encoded onto standard DVD media. Of course, new decoding chipsets will have to be added to address the new standard(s). Blockbuster and other rental houses will welcome the new potential revenue stream!

Content Providers
Content providers have a huge vested interest in the new compression techniques. If they are purchasing bandwidth to distribute their signals, the cost to send a high-quality SD channel today via satellite could be similar to the cost to distribute an HDTV channel with the new approach.

Most network programming is already broadcast/recorded in HDTV. All films can easily be encoded to HDTV, with better success than with SD. Film-makers and distributors will welcome the option to create HDTV DVDs, (albeit at a slight premium) and increase their revenues and profits.

Great! But When?
Decompression technology is emerging first. Custom H.264 & WM9 decompression chips appeared at the end of 2004, with a possibility of retail products (set-top boxes, satellite receivers, DVDs) during 2005. Certainly, the revolution is beginning. Real-time compression should also be practical in 2005, with prices starting to fall in 2006 in time to meet the broadcasters’ digital television deadline in 2007.

The next five years promise to be the most exciting time in our industry since the introduction of color television. Who will benefit? The entire industry! Content creators and producers will have a new cost-effective, high-quality medium to extend and expand their craft. Broadcasters will have technology that allows more efficient use of their digital spectrum, as well as new products to offer. Content distributors will have large quantities of new content/products to offer with minimal hardware changes.
Manufacturers will have new product to offer. And, consumers will benefit from better quality television at lower prices.

Hang on! It’s gonna be an exciting ride!

Cliff Johnson is President of Media Management Company in Atlanta,
a personal friend and equipment supplier to countless production
companies throughout the US... including Imagefilms.

Cliff can be reached at 770-979-8855

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