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Description of Document: Federal Description of document: Federal Communications Commission (FCC) Report: Assessment of the Impact of DTV on the Cost of Consumer Television Receivers, Final Report to: Maximum Service Television (MSTV) and National Association of Broadcasters (NAB) September 10, 2001 Requested date: 18-March-2009 Released date: 13-April-2009 Posted date: 28-September-2009 Source of document: Federal Communications Commission 445 12th Street, S.W., Room 1-A836 Washington, D.C. 20554 Phone: 202-418-0440 or 202-418-0212 Fax: 202-418-2826 or 202-418-0521 E-mail: [email protected] Online form: http://www.fcc.gov/foia/#reqform The governmentattic.org web site (“the site”) is noncommercial and free to the public. The site and materials made available on the site, such as this file, are for reference only. The governmentattic.org web site and its principals have made every effort to make this information as complete and as accurate as possible, however, there may be mistakes and omissions, both typographical and in content. The governmentattic.org web site and its principals shall have neither liability nor responsibility to any person or entity with respect to any loss or damage caused, or alleged to have been caused, directly or indirectly, by the information provided on the governmentattic.org web site or in this file. The public records published on the site were obtained from government agencies using proper legal channels. Each document is identified as to the source. Any concerns about the contents of the site should be directed to the agency originating the document in question. GovernmentAttic.org is not responsible for the contents of documents published on the website. Federal Communications Commission Washington, D.C. 20554 April 13, 2009 In Reply Refer To: FOIA 2009-296 - - This letter is in response to your Freedom of Information Act ("FOIA") request which the Federal Communications Commission received on March 18, 2009. Your request seeks "a copy of the rep0l1 prepared by Arthur D. Little entitled' Assessment of the Impact of DTV on the Cost of Consumer Television Receivers' , dated September 10, 200 1." Commission staff located a copy of the report identified in your request, which is enclosed herewith. The Commission has classified andprocessed your request under the rules for "all other requesters." Pursuant to section 0.470 (Assessment of Fees) of the ,Commission's rules (47 c.F.R. Part 0 § 0.470(3)), you are entitled to receive the first two hours of search and review time by Commission staff at no charge. In addition, you are entitled to receive the initial 100 pages of material free of duplication charges. After the first 100 pages, a fee of $.17 per photocopy is charged (47 c.F.R. §0.465(c)(2)). Your request required less than two hours of search and review time, and we are providing 100 pages of material. As a result, there is no charge associated with your request. If you have any further questions regarding this matter, please do not hesitate to contact me. Sincerely, '1u:Lk<A � Michael S. Perko &. Chief, Office of Communications and Industry Information Media Bureau Enclosure Assessment of the Impact of DTV on the Cost of Consumer Television Receivers Final Report to: Maximum Service Television (MSTV) and National Association of Broadcasters (NAB) September 10, 2001 Arthur D. Little, Inc. Cambridge, Massachusetts 02140-2390 U.S.A. Reference 74003 Legal Notice This report was prepared by Arthur D. Little, Inc. (ADL) for the Association for Maximum Service Television, Inc. (MSTV) and National Association of Broadcasters, Inc. (NAB), to develop an estimate of the direct material cost additions to enable reception of Advanced Television Systems Committee (ATSC) compatible broadcast transmissions. Neither ADL nor any person acting on its behalf: • Makes any warranty, expressed or implied, with respect to the use of any iriformation or methods disclosed in this report; or • Assumes any liability with respect to the use of any information or methods disclosed in this report. Table of Contents LEGAL NOTICE................ ................................................................................................................................... I 1 EXECUTIVE SUMMARY ......................................................................................................................... 7 1.1 I]'(TRODUCTION......................... ................................................................................................................. 7 1.2 SCOPE AND METHODOLOGY................................................... .................................................................... 7 1.3 STUDY SCENARIOS .................................................................................................................................... 8 1.4 SUMMARY OF THEANALYSIS . ............................................................................................................... ..... 9 1.4.1 DTV Market Penetration .................................................................................................................. 9 1.4.2 Manufacturing Learning Curve ...................................................................................................... 11 1.4.3 SensitivityAnalysis ......................................................................................................................... 12 1.4.4 Results of Cost/Price Analysis ......................................................................................................... 13 1.4.5 Key Uncertainties ........................................................................................................................... 16 2 INTRODUCTION ........................................................ ...................... ...... ............ ............. ........................ 18 2.1 REpORT ORGANIZATION ................. ...... .......................................................................... ................ ........ 18 2.2 BACKGROUND ........................................................................................ ........................ ............ .... ........ 18 2.3 RELATED FCC RULEMAKING ACTIVITIES ..................... ............................................................................ 20 2.4 OVERVIEW OF DIGIT AL TELEVISION TECHNOLOGY ................................................................................... 21 2.4.1 MPEG-2 Standard ......................................................................................................................... 24 2.4.2 Overviewof ATSC Formats ............................................................................................................. 24 3 SCOPE AND APPROACH ....................................................................................................................... 26 3.1 SCOPE ........................................................................................................................................................ 26 3.1.1 Reference-model of Television Receiver ........................................................................................ 26 3.1.2 Set-Top Transverter ....................................................................................................................... 27 3.1.3 TV Receivers vs. Set-top boxes ....................................................................................................... 28 3.2 ApPROACH .............................................................. ................................................................................ 30 3.2.1 Methodology Overview .................................................................................................................. 30 3.2.2 Details of Methodology .................................................................................................................. 32 4 KEY ASSUMPTIONS AND DATA SOURCES ....................................................................................... 34 4.1 KEy DATA RESOURCES .................................. ......................................................................................... 34 4.1.1 Estimates of Digital TV Sales ........................................................................................................ 36 4.1.2 Retail Prices on existing DTV products and Set-top Boxes.............................................................. 39 4.1.3 Cost Information ........................................................................................................................... 42 4.1.4 Size Distribution of TV Sales .......................................................................................................... 44 4.1.5 Market Adoption of Related Products ............................................................................................. 46 4.1.6 Typical Pricing of Conventional Television Receivers .................................................................... 49 4.1.7 Typical Retail Markups for Television Receivers ............................................................................ 50 4.1.8 Interview Program ......................................................................................................................... 51 4.2 KEy ASSUMPTIONS .................................................................................................................................. 53 5 COST ANALySIS ....................................................................................................................................
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