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New digital pay-TV service to expand content, add VOD

April 12th, 2006

USDTV, a digital pay-TV service that uses the public airwaves, plans to offer new themed-content packages, such as Spanish-language or sports programming. Pricing should be in line with their $6.95 charge for the Starz movie package. Also in the works: Video on demand.

Making the switch to MPEG-4 video compression will allow USDTV to offer more channels.

USDTV markets a 30-channel package for $19.95 in Dallas/Fort Worth, Salt Lake City, Albuquerque, and Las Vegas. Viewers could get most of those channels for free, just by watching over-the-air digital TV. If you want a budget-priced alternative to cable, perhaps its worth a look. For viewers who find digital TV setup daunting, a company with phone support and in-home installers might add to the value.

But I still don’t like the idea that station owners are leasing out public airwaves that should be used for free TV to a pay-TV service.

• Link: Mediaweek

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