Cable TV Newsroom Investment

Multicasting refers to the delivery of information on the same bandwidth to more than one destination simultaneously. The technology creates copies of the data that can be sent to several end users. It is possible only on digital television, and can be seen in contrast to the traditional ‘analog’ one-channel version of television. That is how HBO, for example, creates HBO one-through-four on a digital cable system, rather than the single HBO of old.

Simply put, it means that because digital television allows more information to be packed into the allotted signal using compression, multiple channels can be transmitted in the same bandwidth instead of just one.

Why do broadcasters want to move to multicasting? It’s more financially viable to be able to send many channels to viewers, not just the single one that broadcasters can transmit today.

The Telecommunications Act of 1996 allocated extra spectrum for the creation of advanced television (ATV) and ancillary services to television stations. This was done to insure broadcasters a future in digital and enhanced television services.30 Since the new digital spectrum on each TV station can be “sliced” into several channels, it means that instead of having to compete on one program schedule — during prime time — multiple streams allow the broadcaster to have targeted programming (for families or local communities), thereby creating a whole new range of revenue opportunities (see Local TV Economics).31