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1/3/84 Page -5- <br />benefit of the addressable system is that it <br />prevents theft. Theft is a prime concern to <br />any business and is also a prime concern to <br />the City. Because the City receives a 30 <br />frar.~chise fee from the gross revnues of Scripps/ <br />Howard. Scripps/Howard also purchased the <br />Loveland system, which had the same type of <br />converters. It hired an independent agency <br />to go in investigate the system, and it dis- <br />covE~red that 27% of all premium services were <br />being stolen or received illegally by the <br />people in the town. A similiar investigation <br />was not performed in Louisville but the numbers <br />were estimated to be approximately 200. <br />The second advantage of the addressable system <br />is i:hat it is computerized, which means that <br />if a person wishes to change from HBO to <br />Showtime or to add some other premium channels, <br />it :is no longer necessary for a repairman to <br />comE~ to your home, this can now be handled <br />by ithe computer. <br />Another advantage of the addressable system <br />whi~~h will be going into effect will allow <br />for the implementation of pay pre-view. This <br />provides for the ability, i.e. if you do not <br />take HBO, but some night there is a champion- <br />ship boxing match and you wish to look at just <br />this event, the addressable systems allows <br />you to call the office and state that you <br />would like to watch this event - by punching <br />into the computer you will be able to view <br />it that evening. As soon as the match is <br />over it will be descrambled and it will be <br />charged on the next month's billing. <br />The greatest advantage of the addressable <br />system is that it will allow subscribers to <br />receive everything that is available from <br />the satellites from the sky. <br />Mr. Lyons stated that as of tomorrow sub- <br />scribers would be receiving all 48 satellite <br />services. <br />Cable Ready TV Sets A gentleman from the audience asked what would <br />all this do with Cable ready TV sets and VCR's? <br />Does that mean that are not going to make <br />Cable ready televisions and VCR's anymore <br />because they are really not needed? What do <br />people do that have already paid $400 - $500 <br />extra for this capability and now it is no <br />good. <br />