UPDATE 1-Cablevision could air 500 HD channels by year-end

By Yinka Adegoke

NEW YORK, June 21 (Reuters) - Cablevision Systems Corp. (CVC.N: Quote, Profile, Research, Stock Buzz) said on Thursday it will have the capability to carry more than 500 channels of high definition television programming by year-end as competition mounts from satellite TV and telephone operators.

The New York-based cable operator also said it will add 15 new HD channels from Voom HD Networks starting June 26, amounting to a total of 40 HD programming services for Cablevision digital cable TV customers.

U.S. cable operators have been waging a marketing offensive against satellite TV operators in a bid to convince the public they will have the capability to deliver the most high definition channels.

Large flat-screen HD TVs have been one of the hottest selling consumer electronics segments in the United States for several years, prompting satellite and cable companies to vie for subscribers by touting the quality of HD video for their TVs.

"Over the next few years, HD will move from a nice-to-have to must-have," said Craig Moffett, analyst at Bernstein Research.

The competition is even more intense in Cablevision's regions where phone companies Verizon Communications (VZ.N: Quote, Profile, Research, Stock Buzz) and AT&T Inc. (T.N: Quote, Profile, Research, Stock Buzz) are rolling out advanced digital TV services that are ready to carry HD services.

"Satellite and phone company TV providers continue to talk about their plans for HD, but Cablevision is actually doing something about it," said John Trierweiler, Cablevision's senior vice president of product management.