The U.S. cable company Comcast did its best to differentiate itself by offering 'HD on Demand', a service that allows a subscriber to choose a preferred high-def movie. Instead of a movie, analyst say, people prefer HD channels over HD choices, meaning that Comcast will have to invest heavily to increase its amount of HD channels.

HD channel leader DIRECT TV carries more than double of what Comcast is offering with only 40 HD channels. According to Thomas Eagan, a senior media analyst at Collins Stewart, an investment banking group, Comcast recently concluded that they will need more channels. "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."

Eagan expects Comcast to switch from analog to digital meaning their HD capacity will increase. Although this will be expensive, it is expected to be the only way for Comcast to look interesting.

"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.