Digital cable is very similiar to analogue cable.
In 1989, General Instruments demonstrated that it was possible to convert an analog cable signal to digital and transmit it in a standard 6-MHz television channel. Using MPEG compression, CATV systems installed today can transmit up to 10 channels of video in the 6-MHz bandwidth of a single analog channel. When combined with a 550-MHz overall bandwidth, this allows the possibility of nearly 1,000 channels of video on a system. In addition, digital technology allows for error correction to ensure the quality of the received signal. The move to digital technology also changed the quality of one of cable television's most visible features: the scrambled channel.
The first system to "scramble" a channel on a cable system was demonstrated in 1971. In the first scrambling system, one of the signals used to synchronize the television picture was removed when the signal was transmitted, then reinserted by a small device at the customer's home. Later scrambling systems inserted a signal slightly offset from the channel's frequency to interfere with the picture, then filtered the interfering signal out of the mix at the customer's television. In both cases, the scrambled channel could generally be seen as a jagged, jumbled set of video images.
In a digital system, the signal isn't scrambled, but encrypted. The encrypted signal must be decoded with the proper key. Without the key, the digital-to-analog converter can't turn the stream of bits into anything usable by the television's tuner. When a "non-signal" is received, the cable system substitutes an advertisement or the familiar blue screen.