That's according to an article in Multichannel News.
Thomas Eagan, a senior media analyst with Collins Stewart, an investment banking group, says Comcast has concluded that it needs to add more high-def channels.
The cable operator now carries around 40 HD channels in most markets (fewer in some), but that's less than half than what HD channel leader DIRECTV offers.
Comcast has tried to downplay the disadvantage by promoting its high-def Video on Demand service. But Eagan says that's not enough to keep subscribers happy.
"I think HD channels are more important than HD choices,” Eagan told Multichannel News. “I think people want HD channels, not just HD On Demand.”
Eagen forecasts that Comcast will switch its systems to all-digital, eliminating analog channels which would increase its high-def capacity. However, the analyst says the switchover will be costly.
“Whether they use digital to analog converters or digital set-top boxes — maybe they will use a combination of both — I think it’s going to result in a big 2009 (capital expenditure) number,” he said.
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