HDTV lacks programs by Paul Brent

The next great thing in media, high-definition television, will be the
buzzword thrown at confused consumers as they engage in the holiday sales dance at their electronics store of choice. Standing there in a showroom before a wall of sets, nudged by salespeople hungry for commissions, they'll see just how great the football game or their favourite TV show looks in HDTV.

Most will buy an HDTV-ready set -- it is estimated that between 60% and 70%
of sets sold over the holidays will be HDTV. The only problem eager
high-definition adoptees will encounter (besides the ancillary equipment they
will have to rent or buy) is the dearth of high-definition programming there is to watch once they've got their expensive sets up and running.

It's a situation that's been called a "concern" by none other than the
chairman of the CRTC, Charles Dalfen. Speaking at the Canadian Association of
Broadcasters meeting in Ottawa this week, Mr. Dalfen warned of a "growing
technological gap between television services in Canada and the U.S." in the
areas of digital and HD television.

Consumers, by going out and plunking down a couple thousand bucks on HD-ready
sets, are doing their part. It's the broadcasters, who are not being pressured by regulators as they are in the U.S., who are lagging behind. In the States, the top 30 markets boast network affiliates transmitting digital signals over the air while in Canada, there is 15 licensed over-the-air digital stations and five HD pay and specialty services, with "very limited" programming on those services, the CRTC head notes.

"There's a bit of a chicken and egg [situation]," said Kaan Yigit, president
of Toronto-based Solutions Research Group Consultants. "The programmer guys are saying wait until the HD penetration reaches a minimal threshold and meanwhile the cable guys are saying, 'Well look, we can't sell this until you give us some HD product.' "

Mr. Yigit's firm estimates about 5% of Canadian households have an HD set, a
number that should soar to approximately 15% shortly as the new sets become the hot holiday seller. His firm predicts HD sets will be in one in four Canadian homes by early 2006.

The disappointment of early HD adopters has been heard loud and clear by
providers such as cable giant Rogers Communications Inc. A Rogers executive
noted in Ottawa this week that much of the programming on so-called HD channels isn't truly high-definition, which can make the service a tougher sell.

"If we are going to allocate the spectrum to channels, we should be making
sure that the channels themselves are taking full advantage and putting up as
much HD content as possible," said David Purdy, vice-president and general
manager of television. "In areas like sports it is absolutely critical that
programmers respond to the opportunity and carry as much HD content as possible."

Executives at the broadcasting conference warned that the yawning HDTV gap
between U.S. and Canadian broadcasters could fuel the growth of the industry
bogeyman, namely the grey and black market for U.S. satellite services. (As
well, since most of TV viewers are huddled along the U.S. border, they can
already receive some HD signals over the air, for free).

The people hungriest for HD movies and sports -- young, techno-savvy TV
watchers -- are precisely the people least likely to be willing to wait for the Canadian broadcasting industry to get its act together.

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