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Emerging Trends: Communications Digital TV’s Big Deadline, or Delay? Consumer advocates want to push back the February 17, 2009 jump to digital , but an extension may do more to simply postpone feared disruptions than prevent them. by Lauren Lynch Flick Q&A Next to the , perhaps no Q: Let’s start with the big switch to consumer platform is digital TV signals, who does this evolving faster than . For affect and why is it happening? more than a generation, was a relatively simple decision from a Lynch Flick: In short, many of service standpoint. Analog broadcasts the frequencies, or channels, that dated back to the 1940’s, while compet- broadcasters use today for the free, ing cable and satellite-based subscription “over the air” television stations Lauren Lynch Flick services gained popularity in the ensuing that we are all familiar with and Communications . Today, these traditional choices used to being able to receive, are 202.663.8166 are being revamped by the growing being reallocated for public safety, [email protected] popularity of more sophisticated high such as assuring that police and fire definition (HD) TV equipment and crews can communicate with one myriad set-top receiver options from another on the same frequencies service providers and consumer in an emergency, as well as for electronics manufacturers that provide new services by phone greater access and control over content. and data carriers. In the past year, Yet, just as the nation is poised to the Federal Communications embrace a major step forward in the Commission (FCC) auctioned these evolution of over-the-air television, old analog TV frequencies off to concerns for the nation’s readiness to the highest bidding companies in do so threaten the government’s anticipation of television broadcast- long-standing proposal to terminate ers vacating the channels by the analog broadcasts in favor of digital Congressionally-mandated deadline television (DTV) on February 17, 2009. of February 17, 2009.

Already implemented in regional test The switch to newer, digital TV markets, this massive digital “switcho- (DTV) signals allows broadcasters ver” has revealed several important to provide viewers with additional lessons and issues unanticipated by programming streams, as well as consumers. In this Q&A, Pillsbury greatly increased picture and sound Communications law partner Lauren quality. Nevertheless, the challenge Lynch Flick answers persistent ques- of making sure that all households, tions consumers have regarding how especially those with older sets, can they can stay informed and tuned-in. receive the new signals, is daunting.

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Q: Is February 17 going to be revealed widely-held misconcep- As a result, Congress needs to like Y2K or worse if famously tions; 41 percent of respondents appropriate more money to issue TV-addicted Americans, for believe all TV sets will require coupons to those on the wait list, example, suddenly can’t watch converter boxes, even digital ones, and some of that money will ulti- Dancing with the Stars? while 29 percent believe you will no mately go unused. longer be able to watch broadcast The underlying confusion, however, Lynch Flick: This is a major TV without buying a new set. arises because no two households concern in Washington and among Twenty-five percent believed they have the exact same equipment or broadcasters across the nation. must subscribe to either satellite or ability to receive over the air signals, Broadcast television provides the cable to watch any television after no two television stations will have nation with vital news and informa- the DTV switch, and 9 percent the exact same timeline for building tion programming. On the local incorrectly believe analog sets must their new digital facility, and digital level, viewers cannot afford to be be discarded after the DTV deadline. deprived of their local stations’ signals behave differently from their public affairs programming and The near-panic that has arisen analog counterparts. All of this coverage of local emergencies. surrounding the converter box means that there will be unavoidable TV provides a link to the outside coupon program may well have consequences for some viewers no world in times of crisis and for brought new attention to the matter when the transition occurs. transition, but it has likely also senior citizens and other vulnerable What if I have cable or satellite confused consumers as to what Q: populations. Loss of television is service? just as critical as loss of electricity. they can or should do at this point in time. Lynch Flick: For households For these very reasons, the federal that subscribe to satellite or cable Q: There have been lots of public government long ago stated it wanted service, the transition should service announcements airing telling to mitigate cost and disruption proceed relatively smoothly. Those consumers that they’ll need to buy consequences for the public at-large companies are offering their a converter box, so why is there so and created a program that distributes subscribers any additional equip- much confusion and panic ? cost-defraying coupons to households ment (set-top boxes) they will need requiring a converter box. However, Lynch Flick: With respect to the to continue to receive local stations the government’s efforts to educate panic, the issue is that the converter after the transition date, for TVs the public about the transition, and box coupons are valid for 90 days, connected to the cable or satellite the implementation of the converter but of those who have requested and service. However, if a household box coupon program are drawing fire, received them up to this point in wants to use additional television especially since the coupon program is time, only about one-third have sets that are not connected to the currently out of money. redeemed them within that 90-day cable or satellite provider, they Q: Well, just what does the consum- period. The two-thirds who have not will have to take the same steps as ing public understand about the need redeemed them are tying up the non-cable or non-satellite to take action? funds needed to issue new coupons consumers. until such time as their coupons What steps should be taken for Lynch Flick: Before the converter expire. Money will flow back into Q: households or sets that are not box coupon program’s financial the program from those who do not connected to cable or satellite difficulties came to light, Consumers redeem their coupons, but it would service? Union conducted a survey revealing be logical to assume that more that 93 percent of respondents were people will actually use the coupons aware of the DTV transition, which now that the transition is imminent. is positive. However, the data also

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Lynch Flick: With respect to sets In this same vein, digital signals also Not all television stations are that are not connected to cable or differ from analog signals in that they carried by all local cable and satellite, if the set is a newer model do not “fade,” they are either on or satellite systems, but even for those with a digital , it should off. Therefore, a home located on the that are, the cable and satellite generally be able to receive free edge of a station’s service area but operators are not obligated to pass over-the-air digital signals. However, that nevertheless can get some signal on the additional channels or it may be necessary to install a today, may lose that signal once the features that DTV provides. station stops broadcasting in analog. rooftop to do so. Many Q: Wouldn’t a delay simply allow households voluntarily took down Q: And if the set does not have a owners of older sets time to hook their older rooftop antennae years digital tuner? them to converter boxes? ago, these were the aerials that looked like weather vanes and Lynch Flick: If the set is an older Lynch Flick: Certainly some dominated residential skylines analog TV, it will need a converter people will take advantage of any before cable and satellite took off box. This includes all types of delay to purchase and install con- and smaller antennae began ship- television sets such as portable sets verter boxes. There will, however, ping with TVs for indoor use. or those installed in vehicles. still be rough patches in the transi- tion, no matter when it happens. If I’m not going to buy a new Because DTV signals do not pen- Q: Each station making the transition DTV-ready set, wouldn’t I be better etrate walls as forcefully as the old affects another station making the off signing up for cable or satellite? analog signals, consumers in mar- transition. Some may be ready to kets that have already made the Lynch Flick: This goes to the go but cannot do so until another transition are finding that they need issue of how much you wish to station goes or their signals will be to reinstall an antenna, or, if they live engage in this new technological obliterated by interference from one in an apartment building or other revolution. In addition to sharper another. There is such demand for rented space, they need to find out picture quality and better sound tower crews that some stations will whether the building has sufficient quality, DTV gives broadcasters the have to undertake the conversion antenna connectivity. This has led to ability to “” more than one work whenever the crew shows up calls for the government to start stream of content. This is important and then perhaps sit silently until a fund to help consumers purchase because ever since scores of niche the new transition date to avoid antennae as well as converter boxes. sports, news, cooking and other interfering with another station still Existing antenna may also need to be channels shattered the “one network waiting for its crew. Indeed, many reoriented. This is because, for any fits all” model of television, viewers stations in northern climes or whose number of reasons, some stations gravitate to programming they towers are located on mountains had could not build their digital facilities prefer, drawing sponsors and to remove their analog antennae at the same location from which advertising revenue with them. from the tower before winter they have broadcast their analog weather set in. The longer the delay, For example, with DTV in place, a signal. Thus, the spaces in your the longer these stations will sit broadcaster might opt to launch home where you may have received silent, the public deprived of their a new channel catering to a specific strong signals back when you first service. Essentially, a delay could age and gender demographic, while moved in may now change. Or, if a well look like a wreck in a bike race simultaneously keeping up its station’s coverage area has changed with cascading accidents flowing traditional channel and program- significantly, you may simply lose behind the bicyclist that first fell. ming lineups. The switch to DTV that signal or gain others. should be interesting for the business of broadcasting.

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To help spur on the conversion to scarce due to the large number of may not be able to see these newly digital television by getting digital stations needing their services all at added signals until you perform a programming on the air for early- the same time. Thus, these stations, scan to capture the new signals. adopters, television stations were too, will shut down for some period Do not be confused if you begin to required to continue to broadcast of time whenever the transition occurs see your favorite station identified by their analog signals, but to also build and the public will lose access to at a different channel number. As a second station on a different least those programming sources. mentioned, many stations will have channel to operate digitally. For A delay will not prevent any of these to change channels. In an effort to many large market network affiliates, disruptions. avoid confusion, digital equipment is the second channels they received supposed to display the number you were comparable to their analog This does sound a bit like wide- Q: are used to seeing even if the station channels. To make the transition, spread “Y2K” fears in late-1999. is no longer on that channel. Some these stations will simply turn their Where can consumers turn for help? converter boxes may nevertheless analog signals off and continue to show the channel the station is really broadcast their digital signals. For Lynch Flick: Consumers have on, now. In fact, if you cannot get many other stations, especially those several good sources of information your box to display a certain station in the most densely populated areas, available to them. The government’s by tuning to the number you are there were not enough high quality website www.DTV.gov is one. In familiar with, you may wish to call channels to go around. Those addition, the FCC will have help the station to find out what channel stations have been operating their lines available to consumers who it is really using and manually input digital signals on inferior channels encounter difficulties receiving that number to see if that will allow subject to interference from stations broadcast signals or installing you to see the station again. in neighboring markets. Once analog converter boxes. Local television stations are also an excellent source broadcasting ceases, these stations If you are able to receive some of information and should be able to will have to move their digital stations but not others, you may need advise you if they will be shutting operations onto their old analog to use rabbit ears and seek out spots down for any period of time or if channels. This cannot be done at the in your home where a station’s signal their coverage area has changed. flip of a switch meaning that viewers is strongest. If you have no satisfac- lose stations making such modifica- There are several general steps tory results that way, you may have to tions for hours, days or weeks, while consumers can take to make the install or reorient a rooftop antenna. that work is underway. transition go more smoothly. First, Q: Analog broadcasts dominated consumers with digital receivers and Still other stations were built from TV’s infancy, then we had cable converter boxes already installed decades ago with their analog and satellite spark entirely new should “rescan” their boxes fre- antennae at the highest point on competition and business models, quently over the next six months. As their towers. Once those stations and today DTV is changing the game. mentioned, each station’s build-out stop broadcasting in analog, their Where do you foresee the next plan is different, so a station might digital antennae will be moved up to revolution? assure the best quality service to the not have been broadcasting digitally public. Such work requires coordina- at the time the box was originally Lynch Flick: It is fair to say tion with other stations sharing the scanned and more will come on the television has been “making up for tower and specially trained crews air over the next few months. You lost time,” from a disruption stand- that have been and will remain point. We had a short list of options

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for seemingly a lifetime, and now that has been completely upended. What is important is that the action of watching has not changed; all the disruption generally has to do with the quality of the picture, the choices of content and how it is delivered.

It is safe to say that higher definition, programming variety and meeting consumers’ immediate demand for content will keep driving TV innova- tion. Regulators will have to keep pace with new specifications and technology, just as broadcasters, manufacturers and content produc- ers will have to keep simplicity and the consumer experience at the forefront of their strategies for tomorrow’s TV.

“Emerging Trends” is a monthly feature produced by Pillsbury, highlighting key legal issues impacting businesses today. To schedule an interview with any of our lawyers or to receive a copy of “Emerg- ing Trends” on a regular basis, please contact Erik Cummins at 415.983.1286 or at [email protected].

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