Earlier this week, the House Energy and Commerce subcommittee on telecommunications and the Internet held a hearing: “Status of the DTV Transition: 154 Days and Counting.” As a reminder that the Digital TV Transition is about over-the-air broadcast TV stations, one could note some of the issues raised in press coverage.

• Lawmakers See Challenges for TV Transition (WaPo)
• Early Digital-TV Switch Has Flaw: Viewers Could Lose Certain Channels on Permanent Basis (WSJ)

Some viewers had issues in Wilmington with over-the-air reception of the new DTV signal; some had problems setting up converter boxes with their analog TV sets.

NCTA President & CEO Kyle McSlarrow had a little different perspective, as he testified at that hearing. He focused on the issue of retransmission consent and how it would be effected by the transition. This FCC fact sheet covers the details, but suffice to say that retrans (and the related term “must carry”) refer to how cable operators can carry broadcast stations.

Here is some of the coverage of his testimony:

• Retranmission Deals May Get Derailed by DTV Transition, Cable Operators Warn (TV Week)
• McSlarrow: Retrans Uncertainty Creates Cable ‘Storm’ (MediaDailyNews)
• DTV “quiet period” debate gets noisy in Congress (Ars Technica)

Here is a link to the text of McSlarrow’s comments and I’ve embedded the audio below (which runs just under six minutes).

 

 McSlarrow Testimony 9/16/08: Play Now | Play in Popup | Download

To help you understand this, you need to understand that retrans and must carry play a critical role in ensuring you can see your local broadcast stations as part of your cable lineup.  Some of the existing deals will lapse around the end of the year, right before the Feb. 17 transition date.

Last month, the NAB Board of Directors pledged to identify a Retransmission Consent Quiet Period. NCTA issued this statement:

“In recent months, we have discussed with NAB the need to recognize the potential for consumer confusion and disruption involved with retransmission consent disputes that might arise as we approach the broadcasters’ digital TV transition on February 17, 2009. We appreciate NAB’s acknowledgment that this is a very real concern, and continue to support efforts to minimize potential consumer confusion through the adoption of a quiet period. But the reality is that many outstanding retransmission consent agreements expire by the end of 2008. Any voluntary quiet period that does not begin before the agreements actually expire – or which is too brief to preclude potentially confusing messages about broadcast carriage during the time of the actual DTV transition – represents the illusion of a commitment and does not serve the consumer.”

As reported earlier, there was the first major test of the DTV Transition in Wilmington on Monday. Things largely seemed to go well, with a few exceptions. Ironically, since cable was originally built on delivering better reception, people seemed to have had some issues with clear reception of digital television.

Here is some of the coverage:

• Charlotte Observer
• Light Reading’s Cable Digital News
• Elon University’s The Pendulum

One takeaway from the event was that there seemed to be very high awareness of the transition, but there also continues to be some confusion between the digital transition involving over-the-air broadcast stations and the digital transition that cable operators have been conducting for a few years.

For example, here’s a recent post from the Cultured State blog: The 2009 Digital TV Transition: Flirting With Disaster. The author insists that “the cable television industry isn’t telling the whole truth on what’s about to happen to your cable service.” The false charge is leveled that you won’t be able to continue to receive your cable signal unless you have a set-top box or a Digital Cable Ready TV. Proof is offered in the form of a July article from MSNBC’s Bob Sullivan.

As it so happens, I’ve already addressed Sullivan’s piece:

Bob Sullivan, senior writer for MSNBC.com’s Technology section, posted an article today entitled “The ‘Other’ Digital TV Conversion Might Cost You,” which purportedly attempts to clear up some confusion about the coming Digital Television transition. In fact, it simply sows more confusion. Sullivan has tried to establish (falsely) a direct relationship between the upcoming “DTV Transition” and efforts by cable operators to expand their video offerings and enhance other services.

Read the whole thing for the full explanation, but suffice to say that cable needs to manage its bandwidth, which is why we see things like switched digital video or channels being moved from analog tiers to digital. This has been going on for some time and has nothing to do with the Digital TV Transition of next February.

A sinister portrait is painted of the cable industry’s intentions regarding set-top boxes. I will simply refer you to comments I made to the TV Barn blog:

“If you switched to DirecTV or Dish, you have to have a new box. If you switch to Verizon FiOS or AT&T’s U-verse, you have to have a new box. It baffles me to no end why there are four companies competing with cable and nobody has ever complained that you have to have a set-top box for them.”

Michael Marcus at the Spectrum Talk blog also has concerns: 6 Months to Go and Some DTV Confusion Continues. He tries to wade through a variety of website, but concludes, “…if you have your analog TV set connected directly to the cable system and select channels directly with your TV set tuner, you might be in trouble in the near future.”

What he’s referring to is that cable operators have offered to carry local broadcast signals on analog tiers for three years, unless the cable system goes all-digital. This does not seem to be sufficient for him:

Note that the FCC requirement only deals with local over-the-air signals (e.g. signals from NAB and MSTV members), not C-SPAN, CNN, The Food Network, etc. So the quote from the DTV Transition Coalition above (actually linked through the NCTA site) that says “TV sets that currently receive programming through cable or satellite are not likely to be affected by the transition to digital.” is at best a half truth. So is the FCC quote, “Analog TVs will continue to work with cable, satellite, VCRs, DVD players, camcorders, video games consoles and other devices for many years”. But if your idea of TV is limited to what the 15% of American homes without cable or satellite actually see, then the information is correct.

Once again, we’ve got apples and oranges. The Transition is about over-the-air broadcast stations. If cable channels have to be moved from analog to digital, that is a completely separate issue.

As you’ve probably read, the Federal Communications Commission chose the Wilmington, NC market as the first test case for the Digital Television transition (Here’s the story from the local paper, the Star-News). The switch was flipped at noon on Monday – a literal giant switch handled by Wilmington Mayor Bill Saffo and FCC Chairman Kevin Martin.

Several of my colleagues were down for the event and one captured this video.

In that video, there were four TV sets displayed, but you can only see the two on the right. Of those two, the one on the left is hooked up to a digital TV converter box and is receiving the digital signal. The one of the right is receiving the analog signal. Once the switch is thrown, the screen first goes black and then shows a message telling viewers that they need to do something to receive the digital signal.

And here’s a  more detailed report from NCTA’s Rob Stoddard:

By all measures, the Wilmington trial was, technically, a success. The full-power commercial broadcast stations in the market were successful in pulling down at 12:00 noon Eastern Time all of the network, syndicated, and local programming they were broadcasting in analog – leaving viewers entirely dependent upon those broadcasters’ digital signals. Cable operators in the market, and presumably the satellite providers that also serve viewers there, were successful in accommodating the digital-only scenario, as well as in processing the hundreds of requests for new service or service upgrades that came in the days preceding and during the cut-over.

All major stakeholders – broadcasters, cable operators, and government officials at the national, state and local level – also appear to have been successful in collaborating on solutions that would best serve consumers. That collaboration left a halo of good feelings, in that the various groups, which more frequently are competitive and adversarial, were almost surprised to discover that they could work closely together within tight time constraints to resolve all of the issues implicit in the cut-over.

What we’ve actually learned from the trial, so far at least, is more an affirmation than new knowledge:

People will (and do) wait until the last possible moment. According to published reports, cable operators reported a flurry of consumer calls; supplies of pertinent consumer electronic devices (converter boxes, antennas, etc.) were stretched; and local officials reported a run on applications for government discount coupons, meaning that some consumers would be waiting to receive coupons well after the cut-over date – all in the hours leading up to the actual cut-over. And this in a market in which NAB reported 97 percent awareness in the week prior to the cut-over.

The “digital cliff” effect does take a toll. Published reports also say that local TV stations received, collectively, hundreds of calls right after the cut-over, many from people who had obtained and properly installed the government-certified digital-to-analog converter boxes for their over-the-air analog TV sets, but who for a variety of reasons could no longer see some or all local TV signals. We can assume that some people needed new or better antennas; others had failed to program their new boxes by scanning for available digital channels; still others just aren’t in a good place to receive local digital TV signals.

And, many people needed help from others to get over-the-air converter boxes hooked up and working properly. The City of Wilmington was persuaded to take action less than a week prior to the cut-over, to make firefighters and emergency responders available upon request, to help hook up a box, re-position an antenna, or provide other assistance to citizens who needed it.

It remains to be seen how these learnings can be applied to the nationwide cut-over that will occur February 17. However, the trial was successful in identifying the kinds of issues that tangibly could be addressed by all communities and stakeholders in the weeks ahead.

It’s been expected for a while that a city might serve as a test case for the coming Digital Television Transition (scheduled for Feb. 17 next year). It’s now been announced that Wilmington, NC will be that test market.

From this morning’s L.A. Times:

The Federal Communications Commission plans to announce today that broadcasters in the coastal city of about 96,000 — the nation’s 135th-largest media market — will turn off their analog signals permanently on Sept. 8. That is about five months before the government-mandated switch-over in the rest of the country Feb. 18.

“We think it’s going to be a good thing for the community and it will pave the way for the rest of the country,” said Wilmington Mayor Bill Saffo.

FCC Commissioner Michael J. Copps had proposed a test market so officials could work out technical glitches and outreach problems with the digital transition, which will render older TVs that use antennas useless unless they’re outfitted with special signal converter boxes.

“It’s just nonsensical to think you can go into a transition like this and pull the lever one time for the entire country and not expect to have real consumer confusion,” Copps said Wednesday. “Even Broadway plays open on the road and you get the kinks out.”

The FCC confirmed the announcement today.

We issued a statement this afternoon from our President & CEO Kyle McSlarrow:

NCTA has previously indicated our support for the concept of a test market, and the cable industry has been working closely with broadcasters and other stakeholders to ensure that the February 2009 transition is seamless for television viewers. We applaud Commissioner Copps for proposing the concept of a market trial, and we look forward to working closely with the FCC so that local cable operators are able to help make the Wilmington test pilot – and the full February 2009 broadcast transition – a good experience for consumers.