TV makers juice push for digital
Manufacturers agree to Powell's deadline
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The move reps a major victory for broadcasters and provides a key element in the FCC head's sweeping strategy for jump-starting the nation's faltering transition to digital TV.
The move could have significant implications for consumers, who can now expect to see a new generation of TV sets. Until Tuesday, TV manufacturers had vigorously opposed the idea of including digital tuners in sets until stations were indeed broadcasting digitally.
But the Powell doctrine, made public late last week, calls on electronics manufacturers to proceed, post haste. Powell's proposal didn't stop there, but called on all sectors of the TV biz to do their part, including asking the four nets to broadcast half of this fall's primetime line-up in hi-def.
The Consumer Electronics Assn. (CEA) had been the only group to criticize Powell's plan, and the FCC chair was clearly pleased at the shift.
Powell said the TV biz is at a historical crossroads, and that digital TV means more of everything. He said he would be sitting down with media and consumer electronics execs in the coming weeks.
"You either get on this train, or it will run you over," Powell told attendees at the National Assn. of Broadcasters during an interview with ABC News vet Sam Donaldson. "A voluntary plan does work. All parties have something to gain."
CEA committed
CEA prexy Gary Shapiro issued a statement saying his industry is committed to working with the FCC. Shapiro also was in Sin City for NAB.
"To that end, we will discuss the chairman's proposal with our manufacturers as soon as possible and examine how we can support our mutual goal of expediting the transition to digital television," Shapiro said.
"We call upon all affected industries to join us in recognizing that we all must give a little so that in the end, each industry -- and consumers, in particular -- will gain a lot," Shapiro said.
Shapiro has long argued that electronic makers shouldn't be made to bear the brunt when it comes to making digital TV a reality. He considers the major stumbling block to be Hollywood, which won't license content until there is adequate copy protection.
But Powell said CEA member companies including Panasonic and Mitsubishi had personally contacted him in the past week to say they were in fact willing to consider the digital tuner rule.
The key provisions of Powell's voluntary proposal include:
- Beginning Jan. 1, 2004, half of TV sets that are 36 inches or larger would be equipped with digital tuners. All such sets would need to have digital tuners by Jan. 1, 2005.
The next deadline would come in January 2006, when all sets 13 inches or larger would be equipped with digital tuners;
- The four nets, as well as HBO and Showtime, will air half of the 2002-03 primetime season in high-def or offer other "value added services," such as interactive TV.
Network execs have pledged to achieve this goal, with most already offering a major chunk of their evening programming in hi-def;
- By January 2003, net affiliates in the top 100 markets will make sure they have the needed equipment to pass on the network signal in hi-def;
- By January 2003, cable systems with 750-megahertz capacity will offer to carry for free five digital signals per broadcaster, or pass on a hi-def signal.
Carriage on a roll
The carriage requirement is a major victory for broadcasters, and is a much-discussed topic at the NAB confab, which runs through Thursday.
National Cable & Telecom Assn. prexy-CEO Robert Sachs has pledged to work with the FCC on the carriage and other issues.
Powell made it a point not to include copy protection issues in his proposal, since the issue is being fought on Capitol Hill.
But Sen. John McCain (R-Ariz.), a key player on the Senate Commerce Committee, issued a statement Tuesday questioning whether the FCC blueprint will do any good. He said the digital transition is still years away, despite a Dec. 31, 2006, deadline.
"Broadcasters received $70 million worth of spectrum for free, and they still have not come close to meeting their digital TV commitments," McCain said. "American taxpayers have been shortchanged."
