Digital to Analog Conversion: Why Cable Does It

Since most of the world's electronic entertainment and communication is moving from analog to digital, you might wonder why anybody would want to go the other way: take digital content and change it back to analog.

Well, as typically is the case in the networks business, there is a simple business reason for wanting to undertake an operation that might not make so much immediate sense.

Cable executives can save some money on digital converter boxes if they can supply simple tiers of popular programming to analog TVs without the need for a box. That might apply to second and other sets, for example, or to some customers who want basic services.

The other angle is that some percentage of the customer base might prefer simple analog-only service. And if all the other providers require digital decoders, cable might have an advantage.

Thomson has introduced a simple box the company said will cost less than $40 and allow delivery of 20 to perhaps 40 channels of analog service.

At the same time, such decoders will allow cable operators to migrate their networks to all-digital operation, allowing analog tiers to be offered to customers who want them.

Comcast has announced that it will rely on such converters to convert 20 percent of its systems to all-digital operation in the fourth quarter.

Cisco Systems, Motorola and Pace Micro Technology also have versions of the decoder.

It's a good thing to let the business case drive the technology. And this is an example of that.