ong-standing physical channel allocation plan AM/FM broadcasters are converting and upgrading existing trans- mission systems to carry digital bit streams enabling multiple audio programs to be carried within existing RF bandwidth and channel allocations. Cable systems and telephone companies are upgrading and building new facilities to enable access to the Internet and deliver program content in standardized, digital, virtual channels. The result of this migration to digital transmission technology is simply more channel capacity capable of distributing and delivering more program material. The total bits in each channel can be subdiv- ided into virtual channels of almost any conceivable amount of band- width, as long as the aggregate and multiplexing overhead bits fit within the capacity of the channel. On a business level, digitization of the content delivery mechanism continues to fracture advertising and subscription revenues into smaller and smaller audiences even down to the individual consumer in a concept called video on demand (VOD). THE NATURE AND CHARACTERISTICS OF CONTENT Analog audio and video signals are usually converted into digital form within physical proximity to the source, ranging from a few inches to tens of feet, perhaps a hundred feet at most. Once in digital form, many things can be done with it, including messing it up unless it's handled with care. Analog content, or content in analog form, requires an analog transmission channel, or it must be converted to digital form for transmission on a digital transmission channel. Digital content requires a digital transmission channel. Analog con- tent by nature must run in real time. Even variable motion recording and playback equipment records the material at normal speed and simply repeats the same frame over several repetitions of vertical synchronizing time base to get the appearance of slower motion, or speeds up several frames over a period of time, giving the viewer the same information faster SO it appears in fast motion. 1 BASIC FUNDA