Television makers and cable operators have reached a deal that would allow digital signals to pass seamlessly over their equipment, clearing a cumbersome hurdle in the transition to digital television, people familiar with the situation said Wednesday.
The two industries were expected to announce the deal Thursday, ensuring that the roughly 70 million homes that subscribe to cable will be able to enjoy the crisp pictures and advanced features digital signals offer, the sources said.
Originally designed to be complete by 2007, the digital switch has yet to take off due to the high cost of new digital televisions, limited programming and disputes over how consumers can record their favorite shows without bootlegging them over the Internet.
