• The Hollywood Reporter, Thursday, July 10, 2008 9:30 AM

The digital TV transition early next year could provide a once-in-a-lifetime boost for cable operators struggling with subscriber declines.

In general, cable companies are seen to be better positioned than their satellite TV and telecom rivals to sign up a portion of the 14 million U.S. homes who only get free television. Sanford Bernstein analyst Craig Moffett says these new subscribers could create up to $2 billion in added value for cable operators.

Cable has a strong value proposition for the free TV population, given that more than 90% of them have phone service, which cable could provide more cheaply. "The digital TV transition could represent a once-in-a-generation catalyst for cable stocks," Moffett says.

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