The Transition to Digital Television The Transition to Digital Television in the United States: The Endgamein the United States: The Endgame

Jeffrey A. HartJeffrey A. Hart

Indiana UniversityIndiana University

October 2, 2009October 2, 2009

Digital TV Transitions: DTV Switchover, Mobile TV, IPTV--Lessons and Projections

Columbia Institute for Tele-Information (CITI)

Plug for BookPlug for Book

Cambridge University Press2004

Other Important BooksOther Important Books

Joel Brinkley, Defining VisionJoel Brinkley, Defining Vision Michel Dupagne and Pete Seel, High-Michel Dupagne and Pete Seel, High-

Definition Television: A Global PerspectiveDefinition Television: A Global Perspective Hernan Galperin, New Television, Old Hernan Galperin, New Television, Old

PoliticsPolitics

Plug for New JournalPlug for New Journal

International Journalof Digital Television

Editor: Michael Starks, Oxford

Associate Editors:

Jeffrey Hart, Indiana University

Jock Given, Swinburne University

US Response to Japanese and US Response to Japanese and European HDTV StandardsEuropean HDTV Standards

US rejected MUSE/Hi-Vision in 1988 after US rejected MUSE/Hi-Vision in 1988 after initial supportinitial support

FCC decided to back a digital TV standard FCC decided to back a digital TV standard in 1993in 1993

US digital standards specified in FCC US digital standards specified in FCC decisions in 1996 and 1997decisions in 1996 and 1997

Reed HundtAl Sikes

FCC DTV Standards Decisions as FCC DTV Standards Decisions as of 1996 and 1997of 1996 and 1997

Multiple DTV formats:Multiple DTV formats: 480i and 480p480i and 480p 720i and 720p720i and 720p 1080i and 1080p1080i and 1080p

All ATSC tuners must decode all formats; All ATSC tuners must decode all formats; Broadcasters can pick and choose what Broadcasters can pick and choose what format to broadcastformat to broadcast

All new TVs must have ATSC tuners by the All new TVs must have ATSC tuners by the end of 2007end of 2007

Sinclair Challenges 8-VSBSinclair Challenges 8-VSB

In 1999 Sinclair Broadcasting questioned In 1999 Sinclair Broadcasting questioned the ATSC’s choice of 8-VSB (Video Side the ATSC’s choice of 8-VSB (Video Side Band) modulation of the over-the-air signal Band) modulation of the over-the-air signal and petitioned the FCC for adoption of and petitioned the FCC for adoption of COFDM (used in the European DVB COFDM (used in the European DVB system) instead system) instead

Although the FCC eventually denied the Although the FCC eventually denied the petition, planning for the transition to petition, planning for the transition to digital TV was delayed for about 2 yearsdigital TV was delayed for about 2 years

Digital-Cable-Ready TVs and the Digital-Cable-Ready TVs and the CableCardCableCard

CEA/NCTA Memorandum of CEA/NCTA Memorandum of Understanding in December 2002 Understanding in December 2002 calls for a “plug and play” format for calls for a “plug and play” format for one-way signals from cable to DTV one-way signals from cable to DTV setssets

FCC adopted the approach formally FCC adopted the approach formally in September 2003in September 2003

FCC recommended the CableCard FCC recommended the CableCard systemsystem

Cable operators did not agree with Cable operators did not agree with proposals for two-way systems, proposals for two-way systems, despite set manufacturers despite set manufacturers preferences for them to do sopreferences for them to do so

Switchover Decisions during the Switchover Decisions during the Bush AdministrationBush Administration

Set a deadline of Feb. 17, 2009Set a deadline of Feb. 17, 2009 Created and funded the converter box Created and funded the converter box

programprogram Set up education programsSet up education programs Worked with industry, NGOs, and other Worked with industry, NGOs, and other

organizations to ease the transition for the organizations to ease the transition for the most vulnerable members of societymost vulnerable members of society

The FCC in 2004The FCC in 2004

L to R: Kevin Martin, Kathleen Abernathy, Michael Powell, Michael Copps, and Jonathan Adelstein

The FCC in 2008The FCC in 2008

Converter Box ProgramConverter Box Program

Authorized in the Authorized in the Digital Television Digital Television Transition and Public Transition and Public Safety Act of 2005 Safety Act of 2005

Administered by the Administered by the National National Telecommunications Telecommunications and Information and Information Administration (NTIA)Administration (NTIA)

Authorized in the Authorized in the Digital Television Digital Television Transition and Public Transition and Public Safety Act of 2005 Safety Act of 2005

Administered by the Administered by the National National Telecommunications Telecommunications and Information and Information Administration (NTIA)Administration (NTIA)

Converter Box ControversiesConverter Box Controversies

Under fundedUnder funded NTIA refused to issue NTIA refused to issue

more coupons when more coupons when people failed to people failed to redeem themredeem them

Retailers were slow to Retailers were slow to stock converters or stock converters or did not honor did not honor coupons when coupons when presentedpresented

Meredith Baker, NTIAadministrator

Education ProgramEducation Program

Initially left too much to industry and Initially left too much to industry and possibly under fundedpossibly under funded

Polls showed people did not understand Polls showed people did not understand the transitionthe transition

Nielson data on ownership of DTV-ready Nielson data on ownership of DTV-ready sets by people who depended on over-the-sets by people who depended on over-the-air broadcasts showed many were air broadcasts showed many were “unready” for the transition“unready” for the transition

Obama Weighs InObama Weighs In

Podesta letter of November 2008 supports Podesta letter of November 2008 supports passage of a bill to delay transition from passage of a bill to delay transition from February 2009 to June 2009February 2009 to June 2009

Funding of converter box program Funding of converter box program increased using stimulus package fundsincreased using stimulus package funds

Obama Statement, Feb. 2009Obama Statement, Feb. 2009

"Millions of Americans, including "Millions of Americans, including those in our most vulnerable those in our most vulnerable communities, would have been communities, would have been left in the dark if the conversion left in the dark if the conversion had gone on as planned, and had gone on as planned, and this solution is an important step this solution is an important step forward as we work to get the forward as we work to get the nation ready for digital TV…" nation ready for digital TV…"

Percentage of Households Unready Percentage of Households Unready for Analog Switch-Offfor Analog Switch-Off

0 2 4 6 8

21-Dec-08

18-Jan-09

1-Feb-09

15-Feb-09

1-Mar-08

15-Mar-09

29-Mar-09

12-Apr-09

26-Apr-09

10-May-09

25-May-09

7-Jun-09

Source: The Nielson Company.

Final QuestionsFinal Questions

Was the transition successful?Was the transition successful? Yes, but still some problems remain Yes, but still some problems remain

(antennas, digital reception issues, LPTV (antennas, digital reception issues, LPTV transition still not complete)transition still not complete)

Would it have been successful without the Would it have been successful without the final delay?final delay? Perhaps, but adjustment costs for the poor Perhaps, but adjustment costs for the poor

and elderly would have been higher and elderly would have been higher