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1999 Consumer
Electronics Show
READ
ALL ABOUT IT!

PAGE 2
Cable, Retailers Must Cooperate
to Push Set-tops
With cable set-top boxes about 18 months from appearing on retail
shelves, manufacturers are still divided on the best form for
them to take and what role they will play. Applauding the development
of open standards for cable technology, which will enable multiple
manufacturers and multiple software suppliers to get involved
in the business, Scientific-Atlantas Ken Klaer said, We
believe that the future is going to be a function of services,
not technology. But Tim Lindenfelser, of integrated chip
manufacturer Broadcom, disagreed. Technology is going to
enable bandwidth, he said. You cant do it today
unless you have the technology that can make that bandwidth available
to carry the services people want. Samsung Electronics is getting
into the cable business because it believes consumers primarily
want single products that can deliver multiple servicessuch
as a Samsung TV with digital cable and Internet access built
in. CableLabs Don Dulchinos agreed. Its not
a product thats a standalone product, so I really view
it as a joint marketing arrangment [with retailers]. And some
either formal or informal agreements need to be made, he
said. But none of the panelists were willing to assume manufacturers
or cable operators will be willing to share their incremental
revenues with retailers as an incentive for them to sell the
boxes, as DBS services do. I dont think the cable
MSOs are going to be overly excited about sharing that,Lindenfelser
said, noting cable operators have in the past opted to own new
services or distribution channels rather than split revenues
with other companies. A key question that must be answered before
such a revenue-sharing deal could be made is how to install and
authorize the box that is sold at retail, Dulchinos said.
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OTHER ISSUES:
Thursday,
Jan. 7, 1999
Friday,
Jan. 8, 1999
Saturday,
Jan. 9, 1999
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