2 Largest Cable TV Operators Team Up on Video Standards

Seeking to speed development of a broad range of video entertainment and information services, Tele-Communications Inc. and Time Warner said Thursday that they have joined forces to select technology standards for the required new equipment.

The agreement between the nation’s two largest cable operators should ensure that the Beta versus VHS wars, which hindered sales of videocassette recorders more than a decade ago, are not repeated as the next generation of video services is rolled out over the next several years.

Because TCI and Time Warner together serve nearly one-third of the nation’s cable TV subscribers, standards selected by them are likely to win acceptance by the remaining cable operators.

The agreement calls for the two companies to pursue development of the electronic equipment and software needed to create the “viewer-controlled electronic superhighways.” Once the technology standards are set, TCI and Time Warner said they want the actual equipment and software to be provided by multiple suppliers.