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DTV Transition

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  1. DTV Transition Converter Box Coupon Program • January 1, 2008: NTIA will begin taking orders for $40 coupons toward the purchase of certified converter boxes • Two coupons available per household • Coupons may not be “bundled” – each coupon can be used toward one box • Coupons expire after 90 days

  2. DTV Transition An LG Electronics digital-to-analog converter box 1.8” 6.4” 8.5”

  3. DTV Transition Converter Box Coupon Program • “Open availability” – no means testing • Enough to fund 37 million coupons • 69 million analog sets are currently used for television • $1.5 billion allocation: • First $990 million to any household that applies • Last $510 million to broadcast-only households • Certified boxes must be basic • Limited special features on coupon-eligible boxes

  4. DTV Transition Converter Box Coupon Program • Applications begin January 1, 2008 • By phone (1-888-DTV-2009) • Web site (www.dtv2009.gov) • Mail (applications will be available at U.S. Post Offices)

  5. DTV Transition Converter Box Coupon Program Coupon Distribution • Two weeks to process applications • With coupons, consumers get list of localretailers, web retailers, and catalogs accepting the coupon • Coupons not distributed until retailers are participating in that area • 90 day expiration begins upon delivery of coupon

  6. DTV Transition Coupon Program Converter Box Certifications • Digital Stream (Two models) • LG Electronics (One Zenith model, one for a retailer brand) Retailer Certifications • 48 retailers certified – mostly smaller stores • No “big box” stores as of 12/03/07

  7. DTV Transition Coupon Program Challenges Consumers can apply for coupons starting January 1, but… • Boxes won’t be ready for purchase in many markets • Retailers don’t want certification to interfere with holiday selling season • Manufacturers won’t begin production until they have orders from retailers • NTIA will take orders for coupons, but not deliver coupons until retailers place boxes on shelves • Broadcasters won’t push converter boxes until they’re available for purchase to avoid confusion

  8. DTV Transition Other Challenges • Best Buy: Won’t sell boxes with coupons until April, 2008 • Radio Shack: 7,400 stores but no commitment by date • Wal-Mart: Rumor is they’ll participate as of 2/17/08 Converter box availability will vary from market to market

  9. DTV Transition Solution: Market by market approach • Spots: NAB will distribute spots promoting coupon option beginning February, 2008 • NAB will work with NTIA to notifystations when converter boxes are available at local retailers • Stations: Should partner with certified retailers for sponsored DTV action spots

  10. DTV Transition Other Challenges: FCC Draft Mandate FCC Chairman Kevin Martin has proposed a new regulation on broadcasters that mandates the airing of spots. November 2007 – March 31, 2008: • 4 PSAs per day, with one PSA and one crawl in each 6-hour daypart • PSAs of at least 15 seconds in duration; crawls of at least 60 seconds in length

  11. DTV Transition FCC Draft Mandate April 1, 2008 – September 30, 2008: • 8 PSAs and crawls per day • 2 PSAs and crawls in each 6-hour daypart October 1, 2008 – March 31, 2009: • 12 PSAs and crawls per day • 3 PSAs and crawls in each 6-hour daypart

  12. DTV Transition Other FCC Mandate Requirements • Language: Information must be in same language as the majority of programming on the station • Promote Gov’t Web sites: Crawls must refer to the Feb. 17 date and refer viewers to the relevant government Web sites for further information • Content: PSAs need to inform viewers what they must do to keep receiving television and must include details of the particular station airing the PSA

  13. DTV Transition Broadcaster Commitment • October 15 Press Conference • Broadcasters $697 million media plan • Independent agency, Starcomm Mediavest analysis of Broadcaster plans • 1195 television stations committed

  14. DTV Transition Broadcasters commit $697m to consumer education at October 15 press conference.

  15. DTV Transition 98,000,000,000 impressions through: • DTV Action Spots • Crawls, snipes and news tickers • 30 minute television program • 100 day “Countdown Clock” • Grassroots initiatives • Figures exclude impressions generated by news coverage Total commitment = $697,455,000

  16. DTV Transition • “Local broadcasters deserve a heaping of praise for their good work in telling Americans about the coming transition to digital TV.” • Reps. Joe Barton (R-TX) and Fred Upton (R-Mich.) in joint statement, October 15, 2007 • “I applaud the broadcast industry for putting forth a strong effort to educate Americans about the transition to digital TV through a comprehensive campaign that includes Spanish-language public service announcements.” • Rep Hilda Solis (D-Calif.)