Digital Television DTV Transition Campaign Overview Todays Agenda

Digital Television (DTV) Transition Campaign Overview

Today’s Agenda 1 p. m. Introduction and DTV Policy Update Marcellus Alexander, NAB 1: 25 p. m. DTV Campaign Overview Jonathan Collegio, NAB 1: 45 p. m. DTV Research Overview Seth Geiger, Smith. Geiger 2: 10 p. m. DTV Resources Jonathan Collegio, NAB 2: 15 p. m. Q&A

DTV Transition • DTV Transition Basics § Analog broadcasts end at 11: 59 p. m. Feb. 17, 2009 § Full power TV stations to broadcast exclusively in digital starting Feb. 18, 2009 § Broadcasters have spent over $5 billion updating infrastructure § 92% of stations already broadcasting in digital • Most remaining stations planning to “flash cut” from analog to digital

DTV Transition Basics § Spectrum loss – 700 mhz band auctioned, allocated in part for “public safety” uses § Channels 52 -69 no longer in TV band after Feb. 17, 2009 § Channels 63, 64, 68, 69 set aside for public safety

DTV Transition • Station technical issues § Stations returning to NTSC channel: 517 § Stations permanently relocating to ATSC channel: 1178 § Stations moving to new channel: 117 § Stations flash-cutting from analog to digital: 137 § Most stations are moving. Coordination within market is crucial to a smooth transition.

DTV Transition • DTV Transition Basics § Upside: Viewers Benefit • Crystal clear pictures and sound • More channels through multicasting • High-Definition (HD) broadcasting § Downside: Upgrade requires action • OTA viewers must take action to upgrade, or will lose reception

DTV Transition • Consumer Options § Purchase a new TV set with a digital tuner • All TV’s distributed to retailers after 3/1/07 have digital tuners. • Cost: $99 -up (low-end DTV sets are not LCD or flat screen. ) § Purchase a digital-analog converter box • Cost: $50 -70 • Expected in stores by “early 2008” • Federal government will distribute $40 coupons § Subscribe to a pay TV service • Cable, satellite or telephone company TV service § Antennas will maximize reception

DTV Transition • Consumer education campaign Goals: • No viewer loses access to free broadcast television due to a lack of information about the DTV transition. • No viewer feels compelled to subscribe to a pay television service.

DTV Transition Consumer Education Campaign Audience • Broadcast Households § 17% (19. 6 m) of U. S. HHs are exclusively OTA § 31% (34. 5 m) of U. S. HHs have at least some OTA § 69 million analog TV sets affected • Disproportionately Affected Groups § § Seniors Minorities Low Income Rural Areas

DTV Awareness up to 49% before any TV spots Source: NAB surveys, January, September 2007

DTV Transition >30% OTA

DTV Transition >25% OTA

DTV Transition >20% OTA

DTV Transition • DTV Transition Law § Analog shut-off date set by 2005 Deficit Reduction Act, signed by President in 2006 § $1. 5 billion for converter box coupon program, administered by National Telecommunications and Information Administration (NTIA) – part of Department of Commerce § $5 million of $1. 5 billion for consumer education

DTV Transition • Government Actors § U. S. Department of Commerce è National Telecommunications Information Administration (NTIA) • Administering coupon program • Contracted with IBM and Ketchum

DTV Transition • IBM § § Retailer certifications Converter box certifications Toll free call center (1 -888 -DTV-2009) Coupon application, distribution, redemption • Ketchum § PR § Consumer education for seniors, minorities, low income, and disabled

DTV Transition • Government Actors § Federal Communications Commission (FCC) • $3 million budget for consumer education • Promoting workshops, exhibits at conferences • Ruled that retailers must post notices on analog sets (March 1, 2007)