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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.

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Presentation Transcript
Dtv transition
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


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DTV Transition

An LG Electronics digital-to-analog converter box

1.8”

6.4”

8.5”


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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


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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)


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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


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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


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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


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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


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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


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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


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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


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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


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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


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DTV Transition

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


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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


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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.)