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Analog channels face revenue declines in DTV transition: study

News | 05/06/2005 4:00 am EDT

 A study done by Wall Communications Inc. on behalf of the Canadian Association of Broadcasters reveals that the combined impact of digital migration and the transition to high-definition (HD) will result in a significant decline in revenues for analog TV channels. While the losses are expected to be offset, in part, by gains made by Category 1 and 2 diginets, the report notes that substantial increases in operating costs for all pay and specialty services, due to the conversion to HD, are expected to reduce if not eliminate industry earnings all together. The report states that the pay and specialty TV sector will see an annual reduction of $80 million in revenues, while operating expenses will increase by $193 million to $429 million under certain scenarios. An excerpt from the study appears below.

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