Summary

The House Subcommittee on Telecommunications and the Internet held a legislative hearing on September 25, 2002 to address the stalled DTV transition, featuring testimony from cable, broadcast, retail, and consumer advocacy representatives. Witnesses broadly agreed the transition had failed to gain consumer traction, citing high equipment costs, limited digital programming, and unresolved technical and regulatory issues.

Source document circa 2002 preserved as-is

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September 30, 2002

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Washington again become the focal point for the (H)DTV transition in this last week.

 

The House Committee on Energy and Commerce

W.J. "Billy" Tauzin, Chairman

H.R.___, Regarding the Transition to Digital Television

Subcommittee on Telecommunications and the Internet
September 25, 2002
10:00 AM
2322 Rayburn House Office Building 

  

  Without a doubt, we all are cognizant of the realities of the legislative calendar.  But no one should read into this that our resolve to get these issues settled is anything less than iron-clad, and we need to be prepared to move legislation.__Fred Upton

This hearing was held last Wednesday, September 25, 2002.
The transcript of it will not be available for 60 days.
An audio recording of the hearing is available by clicking on this line.

There are some opening remarks posted (see below). They set the framework for the hearings and represent the mindset of the nation with respect to the DTV transition. The consumers of DTV products and services were not invited to this hearing, even though it is claimed that only consumers are the chief beneficiaries.

Prepared Statement of The Honorable Billy Tauzin___________________________

Thank you, Chairman Upton for calling this important hearing on the Committee’s staff discussion draft regarding the transition to digital television.  I, like many of my colleagues have been involved in the transition since its earliest stages over a decade ago.  Achieving a successful and timely transition to digital television is a top priority of mine.  It is important for consumers and I think it is essential for the future viability of the broadcasting industry.    So it is with great interest that we have this hearing to come together to discuss potential solutions to break the logjam that has been holding up the transition. (See complete opening statement) 

Prepared Statement of The Honorable Fred Upton ___________________________

Good morning.  Today we are taking a significant step in our efforts to get the digital television conversion on track.   It is important to note that today is a LEGISLATIVE hearing on a STAFF DISCUSSION DRAFT.   (See complete opening statement) 

Our efforts are all about making sure the digital transition happens in a timely and orderly fashion to ensure the consumers will – as seamlessly as possible -- get the benefits of digital television. __Fred Upton

The following is a list of those who gave testimony and the links to their formally prepared statements. They should each be read by all those who are interested in this transition.  I have extracted key phrases from their testimony and added it atop their names.

Witness List & Prepared Testimony

Panel 1

"As the Chairman’s Draft suggests, we also agree that the transition to digital has been a failure.  From a consumer’s perspective, the current incentives to make the jump to digital television are small.  Digital televisions are extremely expensive, and only a small portion of all broadcast programming is available digitally." 

Mr. Gene Kimmelman
Senior Director of Public Policy
Consumers Union
1666 Connecticut Avenue, NW
Suite 310
Washington, DC, 20009

"At the core of the digital TV transition are issues of consumer demand so it is my strong belief that marketplace solutions will bring about results more efficiently than government imposed mandates." 

Mr. Michael S. Willner
Vice Chairman & CEO
Insight Communications
810 7th Avenue
New York, NY, 10019
National Cable and Telecommunications Association

"As we see the situation in the smaller markets we serve, the marketplace is unprepared to know what it wants.  Why?  Because it is the lack of resolution on the technical underpinnings of the digital television market that has denied consumers even a glimpse of what benefits lay ahead.  Without any concept of how their experience might be better in a digital world, consumers lack any reason to engage in this matter.  That indifference then deflates industries’ interest in the subject, and the entire thing grinds to a halt."

Mr. Jim Gleason
President
Cable Direct
On behalf of American Cable Association
1100 N. Main Street
Sikeston, MO, 63801

"The transition can only succeed if we honestly give the consumers what they want, and not try to force them to take what is in the interest of any particular group." 

Mr. W. Alan McCollough
Chairman, President & CEO
Circuit City Stores, Inc.
9950 Mayland Drive
Richmond, VA, 23233

"The purpose of my testimony is to describe some of the successes the Hallmark Channel has enjoyed in its first year of operation, to outline some of our plans for growing the channel in the future, and to express our deep concern that our past successes and future plans will be seriously jeopardized if the government-mandated carriage preference already accorded the broadcast industry is expanded through heavy-handed digital must carry regulation."

 Ms. Lana Corbi
President & CEO
Crown Media USA for the Hallmark Channel
On behalf of National Cable and Telecommunications Association
12700 Ventura Boulevard
Suite 200
Studio City, CA, 91604

"As the Members of this Subcommittee are all too aware, the DTV transition is not moving forward as rapidly as many of us would like. There are a number of unresolved issues, the complexity of which, either from a legal, technical or business perspective, is daunting.   May I suggest with full appreciation for the enormous resources that have been and continue to be devoted by so many to this effort, that we take a step back and view this transition in very  basic terms." 

"Our analog television experience today, as “low-tech” as it might be compared to the wonders of digital technology, provides an invaluable model for how to drive consumer acceptance and use of this new form of television technology."

Mr. Robert C. Wright
Chairman & CEO
NBC, Inc.
30 Rockerfeller Plaza
New York, NY, 10112

"Using the phased-in approach outlined in the FCC’s tuner mandate, starting with large screen sets, the cost of implementation is offset by routine declines in industry pricing.   By the time medium screen sizes are affected, the cost of implementation will have dropped due to increased volume, and once again in many cases competition-based price reductions will have offset the incremental digital costs.  Consumers will end up with a feature that benefits the public interest in accelerating the DTV transition, with minimal financial impact on consumers. "

Mr. Richard M. Lewis
Chief Technology Officer
Zenith Electronics Corporation
2000 Millbrook Drive
Lincolnshire, IL, 60069

"I want to state the Public Safety Organizations’ strong support for legislation that would establish December 31, 2006, as the firm date for completion of the digital television transition, at least as it related to television channels 60-69.  That would allow nationwide public safety use of radio spectrum already allocated for its use, but blocked in most metropolitan areas by ongoing television station operations."

Ms. Thera Bradshaw
President
Association of Public-Safety Communications Officials-International
City Hall East
200 N. Main
Los Angeles, CA, 90012

The position of the National Association of Broadcasters

"While the draft would tackle several key obstacles to the transition, it also falls perilously short in a number of areas.  Even more concerning, the draft would force cessation of analog broadcasts by 2006.  In 1997, then Subcommittee Chairman Tauzin and the full Committee prudently recognized the need to protect consumers from a premature end to analog broadcasting."

"The over-the-air television broadcast industry is literally mortgaging its future to bring digital television to the American consumer."

Mr. Michael Fiorile
President & CEO
Dispatch Broadcast Group
On behalf of National Association of Broadcasters
779 Twin Rivers Drive
Columbus, OH, 43215

Previous Hearing transcripts can be accessed from the following links.

Serial No. 107-20 -- Digital Television: A Private Sector Perspective on the Transition, March 15, 2001    TEXT 375K    PDF 1.2M

The following press accounts of the hearings provided the first perspective.

CNN.com - Angling for the digital TV advantage - Sep. 26, 2002

CNN.com will expire this article on 10/10/2002.CNN.com will expire this article on 10/10/2002.

Wright posts NBC's high-def lineup
Read the full article at:
http://www.tvinsite.com/broadcastingcable/index.asp?layout=story&doc_id=102979&display=breakingNews&

NAB: Analog cutoff could disenfranchise viewers
Read the full article at:
http://www.tvinsite.com/broadcastingcable/index.asp?layout=story&doc_id=102985&display=breakingNews&

In Other Industry News__________________

Tower collapses during DTV modification
Read the full article at:
http://www.tvinsite.com/broadcastingcable/index.asp?layout=story&doc_id=103037&display=breakingNews&

Satellite Merger Story

http://www.ilovehdtv.com/hdtvmagazine/unsubscribe.html

 


T

hat's a good point - I forgot that most stations are operating at reduced
power. I guess we'll have to wait a few more YEARS to see if it gets better
when they turn off analog altogether - I wonder if it will happen before
2010...

This comment above was drawn off the Tips List is a reminder that while we think HDTV is the center of the universe shows like Survivor were raking in conventional viewers to the tune of 23 million. "8 Simple Rules" on ABC--a brand new show--tallied 17.3 million. The Emmy Awards drew 20 million, HBO's second edition of "The Sopranos" had 11.2 million viewers. ABC averaged 10.1 million viewers (6.6 rating, 11 share). NBC averaged 9.8 million but had a higher rating than ABC (6.7 rating, 11 share), which indicates that more people were watching NBC while home alone. CBS had 9.2 million viewers (6.2, 10), Fox 8.6 million (5.5, 9), the WB 4.7 million (3.0, 5), UPN 3.8 million (2.5, 4) and Pax TV 1.3 million (0.9, 2).

So what is our 'political' strength in light of these numbers? If we had every decoder produced and shipped operating in every household and bar, restaurant and & office we would have no more than 200,000 sets lighting up. The  better, and never mentioned news about these new big screen sets is that we have the facility for engaging more viewers per set whereas the old system  historically has one or two viewers per TV set. So, let me pose this question to you: How many viewers do you have on average watching any prime time HDTV programs, be that from the networks or premium movie channels, or from Discovery or HDNet? Email me your response. Dale's Email. In my own household a 57" Toshiba (which I am very happy with) offers an unobstructed view seating that is very comfortable for 6.

 

HDTV Magazine Issues:

I asked our readers if the daily HDTV Program Guide was still useful or should we drop it in order to leave more time to concentrate on Page 2. Over 90% said they use the guide, some religiously, and that while it is going through its teen-like exploratory phase to figure out if it should comb its hair or do push-ups, it should be retained. The recommendations I would like to comply with ASAP include a grid for easy quick reference (which one of our readers is kindly building for us (we have the most talented readers in the world), but the current slimmed down format used over the last four days is being applauded for being both attractive and utilitarian. Obviously, I would like you to pass the guide around to your friends and neighbors and so I think it needs to introduce itself while well groomed, but not gaudy. We do represent the future in that HDTV still belongs to the future more than the present.

As more subscribers come aboard and money is no longer a limiting factor I would like to have depth added (clickable) beyond just the program descriptions, giving readers an option to keep 'drilling' deeper into the program's history, i.e., more photos, interviews with the artists, the network operators, and anyone else related to the program. This is part of our vision for a 21st century publication. I also foresee the day when every HDTV will have a port (as does RCA now) for high speed modem or Ethernet so that a viewer of HDTV can surf to our Magazine and click their way to viewer heaven, including reaching audio and video clips of programs they may be interested in. By that time our web-based guide should be able to compete with anything functioning today and be free of the stranglehold placed on the guide business by very few vendors today.

As to the direction of the HDTV Magazine, Page 2: We have grown so used to being in the midst of a technocracy that we often forget its value until it doesn't work. Remember the fear around Y2K? So, as Ed Ewing suggested on the phone, we all need to keep up on technology. That is never easy and can too quickly descend into the boring. But over the years I have learned where the life is in technical politics. Perhaps the compelling content everyone is talking about could be scripted from the international electro-political story of DTV, with its twists and turns more richly embroidered than any soap opera based in fantasy could possibly be. Stay tuned to the technical side of this movement brought to you in laymen's terms in HDTV Magazine to serve your technocratic citizenship in this country.

What are the important topics to cover? I need to hear from you on what you think the important issues are to keep in focus in this publication. Do you love the arts? Are movies your primary entertainment. Do the network show offer you some quality time? 

"It's a whole new ballgame," said reader Ed Ewing.

Now another subject: Where is this movement to HDTV taking us as a people? Is there more to it then just a box of pretty pictures to give us idle amusements? Sam Bush, who helped me with the HDTV Newsletter for ten years before MS sidelined him, speculated on what the world would will be like five generations into the HDTV era. Indian tribal councils in this nation used to ask if what what was under consideration was good for seven generations ahead? Here in the 21st century we have the attitude that the world was all arranged for this generation of ours alone and the others generations to follow are given no thought. But I would like to reintroduce this Indian custom and ask you what you think a successful transition to HDTV will mean to the world in seven generation's time? Let me hear from you. Dale's Email.

Some thoughts to ponder when responding:

Hearkening back to the idea that we are a technocracy, or at least a technically dependant society, I postulate that something as technically impacting as HDTV will  not only change the way we see the world, but also be itself an influence on how we shape it. From my drama classes I learned that what we finally feel deeply inside is what we act most forcefully upon on the outside. I have been saying for years that the real substance of HDTV is not the economic stimulation it will provide today's economy (though that may be terrific), or the adding of more viewing or less viewing hours to one's schedule, but rather it is a cultural yeast which acts to raise the entire loaf of modern society forever! Of course, I have a flare for the dramatic from those drama classes so you have to expect outlandish statements like this from me on occasion. But is it not at least somewhat true? If it is just somewhat true, is that then reason enough to topple the old TV system in favor of the new? There has to be a reason for HDTV to succeed which is beyond merely satisfying a specific appetite for one select group who may forget in their enthusiasm that a working NTSC system is vitally important to those who do not have this same appetite. Do we have the power to make this transition good for all people? We need to answer that question by answering the next question: What is the true universal importance of HDTV to our nation and the rest of the world? Email me with your answers. Dale's Email.

 

In the following is a copy of an email to Mike Snider at USA Today
I have touched on some of the things which are moving the industry forward.

Hi Mike, my comments are in-line below:

Mike Snider asked me the following questions:

Do you think the FCC chairman's voluntary campaign is an impetus? Or is it natural flow of events?

Yes I do. I say that reluctantly because I do not want government to suddenly come to the conclusion that they can manage all markets. But in this case the consumer is not yet able to fully drive the market due to their deep confusion about it. While the mantra in government, and to a lesser extent, industry, is: "Let the marketplace decide," you have to ask how the American consumers can decide on any form of DTV when ignorance, confusion and bewilderment about it prevails? Ask any 100 you meet in the street what it is and you will get 90 different answers.

Cable has acted much more so than the business available to them for HDTV customers would suggest it should, and the expansion of broadcast hours from broadcasters is not entirely unrelated to the Powell campaign. But there is also this natural flow of events you allude to. You have 350,000 decoders in operation in about 200,000 homes or businesses settings (our readers have an average of 1.7 decoders each) and if just one new person per week sees true HDTV from each of these installations you are awakening over ten million people a year to what HDTV can do for them. With every new decoder sold there is a new demonstration ground that is typically better set up than are most retail environments and staffed by pure enthusiasm--owners of it. I believe this last unsung fact is a powerful contribution to any buzz building up now about HDTV. The fact that new programming is coming online--Monday Night Football, ESPN-HD, the WB additions this year, the additions from ABC; with NBC stepping up to bat; the outstanding Discovery HD-Theater; the courageous Mark Cuban and his HDNet (with two more HD channels in the works) the sustained, if not growing, contributions by HBO and Showtime, and the entire line-up for the fourth straight year of all scripted primetime shows from CBS, plus five hours of CBS daytime per week with the 'Young and Restless and CBS sporting events, including high profile golf, basketball, tennis, and football certainly is providing the sense that there is a major snowball starting to roll. Hallmark has HD in production and every cable channel is looking at HD to see where they may be advantaged if they move to it. Some, like Discovery, are waking up to the fact that if they are too late there will be no cable bandwidth unspoken for to carry them. They either get ready to jump in now or be part of the fading NTSC universe. I think that the individual owners of HDTV receiving and display equipment are taking it upon themselves to be the chief sales force for HDTV receiving equipment and recognize that complacency today can cost them later. Few say to me that they merely like HDTV, in tones once reserved for high school romances they say they love HDTV. I think HDTV is loving them back by providing so many enjoyable hours that were once considered wasted time. I just watched a favorite movie on my own HDTV, thanks to HBO, and the experience was magnitudes greater in enjoyment than it had ever been when viewing from an old VCR played out on a old standard set. In fact, have not turned on any of five old standard sets I own here--some of them were brand new when I took delivery of my 57" HDTV--since the HDTV came through the door a year ago. Did Michael Powell cause me to go out and buy that HDTV? or was that action taken due to knowledge about it? Have I changed my spending and viewing habits because of anything done by Michael Powell? The stations I watch today were sending me HDTV signals before Chairman Powell took office. I think that this natural progression you noted in your question is giving Chairman Power a tail wind for his concepts, which, by the way, I endorse 100%. Co-operation among all business sectors that make up the HDTV experience is essential for relieving the doubts which consumers do still have about copy protection and cable incompatibility. These are things they have read or heard about from typically unqualified spokespersons. There is still too much money at stake for the average citizen to buy while still confused. So, anything which acts as catalyst for reconciliation within the industry differences is praiseworthy.

Now, war jitters have some people holding their breath in fear that buyers will freeze up. It's hard to treat yourself to something so good when your countrymen are subject to being delivered home in body bags. But the realization that the broadcast spectrum that is due to be returned to the FCC is extremely valuable for homeland security provides a new motive for the public to act now. The faster we complete this transition, the sooner we can install new measure for national security which these important frequencies can establish. That is not a trivial reason to do one's patriotic duty in acquiring (H)DTV. There is no evil in urging sales for this reason. I don't want to see this cause exploited by the manufacturers but for the likes of you and I the delivering of this crucial message should be taken seriously.

Mike Snider:

 Any thoughts about how the increased offerings -- and lower priced equipment -- will increase the transition? What else is happening that will further things along?

Speed the transition? Yes, it will, but to where I am not so sure. I am an advocate for HDTV and feel my mission of popularizing it is endangered by the FCC tuner mandate. Why? If it became law that every time I bought a newspaper I was obliged to buy an insert from USA Today also, what incentive would USA Today have to put out a quality insert? The responsibility of 'selling' me the insert, or even selling the insert to the newspaper I buy from, is gone--replaced by a law-of-the-land. The law takes over for the sales department. I fear the same situation with the mandated tuner. Once I have to buy an ATSC tuner with any TV, what incentive will there be within the manufacturers to sustain or improve quality when price will be the chief driver? If you say that price is not thought of here as the chief driver then why the mandate in the first place? If I were one of the big low cost producers in the world moving my operations to Vietnam, China, Thailand, I would be looking for the best marketing team in the world to sell the American public on their low cost ATSC tuner included non-HDTV display digital TV set. I would want to capitalize on the public's ignorance and wow them with catch phrases about 'DIGITAL now finally at low, low prices," and other non-HD razzle 'digidazzle'. Just trying to compete for available dollars in the hands of those who remain knowledgeable about HDTV is not going to play in "China," where total dollars is more important than what might have been sold for fewer dollars. The lowest cost display will never be the HD version, so when price, even by pennies, determines the buying decision, the low performer will prevail.

If the population of lower performing displays becomes the vast majority of the installed base the business necessity for filling the ATSC 19.4 bit stream with what makes up one HDTV program will give way to a business where bits from the 19.4 Mb/s will be allocated to several programs/channels (the multicasting idea). If through earnest salesmanship the American public are led to want HDTV instead of any lower costing and lower performing set, we can avoid this loss. That will take a great deal of education of the market, which is never free. The High-Definition Television Association of America will undertake this education as support for doing so is found.

That brings me to comment on the last part of your question: What else will hasten it?

Well, this sounds entirely self-serving but look past that. What I am about to say is what I completely believe will further the cause faster and far better than anything else possibly can. I am in that unique position to do only what I believe will deliver the most good for the cause of hastening the transition to HDTV. I don't have to do anything else, and  after twenty years of primary research on the subject I would not choose to do what won't work. Making the HDTV Magazine a "must have" as the first logical step that a consumer takes towards acquiring their HDTV equipment and signals is the very best way to advance the cause. Nothing comes in as a close second. I have earned that position over twenty years of independent service to the cause unfunded by other than my own resources for the one simple reason that I unalterably believe that our nation will be a better place for having created a successful HDTV era than not. Why the magazine? First, we can be delivered to more than 60% of the American households RIGHT NOW on a daily basis, and do so without any cumbersome start-up phase. If I had 50 million new subs today their service starts the same day! Try that with a newspaper. I am ready for 100 million hits a day and never puff hard. The only thing that divides me from having the most illustrious and brilliant site on the internet is money, and a sudden popularity of the Magazine solves that problem instantly. We can more than prove the case that we are a people's power force for our own good because we are created, driven, and funded entirely by the public, of which I am one. We get no funding, no support of any kind from anyone but ourselves--we the public. That is so powerful a factor for this market that you can hardly put words to it. You have been on our list long enough to know how enthusiastic our people are--now 5700 strong--and everyone of them, you included I suspect, are willing to help move the cause forward with all of the available wisdom and time that you have available to you. You know how wonderfully expressive these owners of HDTV are in their praise and expressions of love for this product and how sharp tongued they can be to the suppliers who let them down. As I said to ABC president, Alex Wallau, yesterday, "Short of the introduction of indoor plumbing in Alaska there has not been a product more capable of creating a "to hell with the cost, I got to have it" attitude than has HDTV!"

Mike Snider: Thanks for any help you can give.

Mike

Mike Snider Tech reporter USA TODAY

 

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San Jose Mercury News( largest circulation paper in the San Francisco Bay
Area) in its weekly TV magazine, starting last week, is highlighting all
programs in HD in the daily line up.  Every day's page has a special section
called HDTV with all films and programs broadcaster over the air and via
cable or satellite. 
It is beginning....
Newton

Newton Paskin

Comments About the ER Showing on the 25th

We heard about it in the last minute, but we tuned in around the nation. Your comments on the ER showing on NBC.

 

It looked great. Lot's of blood and guts in HDTV. Lots of exciting sound effects in surround sound. The helicopters sounded like they were really overhead.

Just great. Maybe I'll have to watch ER again. It was awful when WRC upconverted their 16x9 SD to HD that then resulted in a picture box effect. The commercials were bigger than the show.

Cheers,__Ed Williams, PBS

Dale:

ER was in HD last night. The format appeared to be a bit softer than 1080i, perhaps 720 or a very good quality upconverted signal. It was definitely in the widescreen format.

Mark White
Houston, Texas

ER was hi-def on KNTV, San Jose.  They kept switching between HD and SD.  I imagine staff training was going on. Tim

In the DC area, everything was just fine with CSI and with the program that
followed. No black bars (except on the commercials) no rain fade (despite
the rain) and no sync problems. Apparently the local CBS affiliate, WUSA,
has things figured out.

__Wayne R.

It looked to me like it was much better than normal. I assume it was high def, but I wouldn't bet on it because it could have been better.

Thomas H. Maugh II
Science/Medical Writer

I got a chance to catch the show on the San Diego NBC station last night. Although I normally don't watch this show I enjoyed it last night because it was in HDTV. Where I live in S.D. I can only get NBC and KPBS in HDTV. I wish I could get the other stations off air as well.

E R Was in High Deff last night in the Chicago Market!

ER was not telecast in HD in the Phila. market.


WRY-TV Channel 4 in Washington DC. broadcast ER in 1080i HD last night. WOW!! It was unreal. Also, WJLA Channel 7 in DC was testing their 1080i broadcast capabilities all last night as well. They were running random movie trailers and 1080i HD video along with audio test patterns for all of the surround speakers. Reception on 7 was also greatly improved. I guess they turned up the power on their transmitter. I can't wait for Monday night football in HD.

Tom
Fairfax VA.


ER was in HD in Chicago on affiliate WMAQ.  Not sure if it had 5.1 audio.


ER was on in HD in Chicago!

Now we just need to get West Wing correctly broadcast. Now, in Chicago, I see an upconverterd stretched 4:3 letterbox image on my 16:9 screen. Looks very bad. Tom Fletcher

Why would NBC want to keep “this announcement under wraps until the last minute...
 
It viewed in the Boston area last night.

 

I live in the Philadelphia area. At first, it was kind of a weird picture, it had black bars on top and on the side. It was almost like I was looking at a smaller version of a widescreen picture. I later turned back to it ( channel 10-1) and suddenly it was filling up my widescreen beautifully. I was certainly stunned to see my favorite show in HD without any notice, I figured maybe they were just testing it or something.

Jesse Andrews

Yes it's true.  ER was in HD tonight.  In the opening of the show it actually said on the screen in a silver background graphic with black lettering "High Definition where available."  Then it said the usual "widescreen" after that.  HOW COOL IS THIS.  Unfortunately, here in Salt Lake City, our local NBC affiliate has been having problems with their system for the past couple of weeks and not one of the premier HD shows from NBC have been in HD and the aspect ratios been all screwed up. Tim, SLC

INDUSTRY NEWS

Today a new era in the world of high accuracy -
continuously sampled color calibration systems from Sencore. Sencore is introducing the CP5000 Color Analysis System.

This enables you to Color Calibrate all LCD,CRT, DLP, and Plasma Video Displays to Match Industry Specifications. The idea is that you can to achieve peak performance quickly and a fraction of the Cost of a spectroradiometer!

See short video by clicking:
www.sencore.com/newsletter/Oct02/CP5000.html

THREE NATIONAL RETAILERS ANNOUNCE SUPPORT OF NEW HIGH-DEFINITION, D-VHSÒ

PLATFORM

Best Buy, Circuit City And Sears To Carry JVC’S
HM-DH30000U D-VHSÒ VCR With D-theater Encryption

 

JVC To Provide National Marketing Campaign

With Retailer

Minneapolis, Minn. (September 26, 2002) – Best Buy (NYSE: BBY), Circuit City
(NYSE: CC) and Sears (NYSE: S), will all begin carrying the JVC D-VHSÒ VCR, that will playback D-Theatre software.

D-VHSÆ wants to play a significant role in the growth of HDTV by providing 'he only' high-definition record/playback solution available. The D-Theater playback offers the increasing number of consumers with high-definition televisions the first-ever prerecorded 1080i HD movies. The D-VHSÆ format is specifically designed to digitally record ATSC broadcast content including HDTV broadcasts the D-VHS VCR with D-Theatre encryption is supported by four Hollywood studios: Twentieth Century Fox, Universal Studios, Artisan Entertainment and DreamWorks SKG. In June Galaxy Quest, U-571, Terminator 2: Judgment Day and Independence Day were released in the format. See  DVHSMovie.com for all titles available.

"D-VHSÆ VCRs with D-Theater operates at a 28.2 Mbps data rate.  "There is simply no better source to display on a HDTV," said Jerry Barbera, VP, Consumer Video Division, JVC Company of America

JVC is about to go all out with print and other advertising.
Mark Cuban is also packaging some of their programs for release in this format. Many shrug their shoulders thinking that the HD-DVD will overtake it,which may be true but not for several more years. The feel of it is a little retro but once you see the picture on the screen you may not mind the re-introduction of tape.

RCA SCENIUM GOES WIDESCREEN

WITH NEW HIGH-DEFINITION TELEVISION ENTERTAINMENT FROM THOMSON

Consumer Surveys and Buying Patterns Confirm
Preference for Widescreen Home Theatre Experience

MINNEAPOLIS, September 26, 2002 – Nearly ten years after introducing the industry's first widescreen television set to U.S. consumers, Thomson (Paris Euronext: 18453) (NYSE: TMS) is launching its new, all-widescreen 2002 line of RCA Scenium high-definition television products at the annual Custom Electronics Design and Installation Association conference. 

The RCA Scenium line of integrated HDTV Sets and  Monitors are all equipped with secure digital interfaces for premium high-definition entertainment, and we’re introducing several industry firsts with RCA Scenium – including DVD integrated in projection TV. With RCA Scenium.

A consumer attitude study conducted by Thomson showed that nearly 90% of consumers prefer a widescreen picture to the traditional square screen, when shown both in side-by-side comparisons.

Independent studies of consumer behavior also confirm this trend. Scott Tallal, President of Malibu, California-based Insite Research, says that "in side-by-side testing of widescreen material on identical traditional displays, consumers clearly prefer 'letterboxed' content to the 'pan and scan' approach. The larger the screen size, the more consumers want a widescreen presentation. Now that they know their favorite movies and scripted TV series are all coming out in widescreen, they increasingly see the traditional 4:3 displays as a dead-end technology."  According to the Consumer Electronics Association, nearly three out of five buyers of HDTV displays are taking home widescreen HDTV Monitors and widescreen HDTV Sets.

Widescreen HDTV With Integrated ATSC Reception

The new Scenium HDTV lineup includes three new rear projection widescreen RCA Scenium HDTV sets (65-inch, 61-inch and 52-inch diagonal screen sizes) that feature built-in ATSC tuning and decoding capability, a second window to the Internet with high-speed broadband connections for browsing, and secure digital interfaces for use with HDTV set-top receivers. Thomson has developed the exclusive SceniVision™ HD Picture System that includes next-generation ATSC receiver/decoder circuitry, InfiniFocus™ high-definition CRTs, Linear Motion Upconverter progressive scan technology, and Adaptive Reverse 3:2 Pulldown for the sharpest HDTV images.

Prices: The 65-inch HD65W140 (suggested retail price $4,299), the 61-inch HD61W140 (suggested retail price $3,799) and the HD52W140 (suggested retail price $3,199).

Industry First: Built-in DVD with Projection HDTV Monitors

Three rear projection --the 61-inch, 52-inch and 40-inch diagonal screen sizes) and one direct-view 34-inch model feature integrated DVD players compatible with audio CDs, CD-R and mp3 encoded CDs.

The prices: T he 61-inch D61W135D (suggested retail price $2,999), the 52-inch D52W135D (suggested retail price $2,399) and the 40-inch D40W135D (suggested retail price $2,199). The direct-view monitor is the 34-inch D34W135D (suggested retail price $2,599). Consumers can choose form multiple colors of decorative frames. The frames easily snap onto the face of the TV in order to adapt the cabinet design for various types of room décor.

There is also a 61-inch Scenium  projection HDTV Monitor and a  slim 50-inch RCA Scenium plasma HDTV Monitor with optional base and speakers. The new Scenium L50000 Liquid Crystal On Silicon HDTV is now available to ship to custom installer dealers.

The 50-inch (diagonal) 16x9 widescreen L50000 (suggested retail price $7,999) in in a   lightweight design in a dramatic contemporary slim-line cabinet. At a weight of approximately 100 pounds, the L50000 is 60 percent lighter than a comparable rear projection TV, and it can be placed in a variety of room settings since the front-to-back cabinet depth is only 18 inches. The secret behind the outstanding picture of the widescreen RCA Scenium L50000 is Liquid Crystal on Silicon technology that manages ultra-bright light to deliver high-contrast, sharply focused color images. Utilizing three reflective light imagers and a sophisticated prism and lensing system, light is transformed into a laser-like beam and imprinted with a high-definition image that is then magnified and displayed in a perfectly aligned widescreen format.

New ATSC HDTV Set-Top Receiver

Thomson is also providing an early glimpse at CEDEA of a new set-top HDTV receiver designed to assure optimum reception from terrestrially broadcast digital TV signals. The RCA ATSC10 over-the-air (ATSC) receiver (suggested retail price $549) features a secure digital DVI-HDTV interface and is scheduled for retail introduction in the first quarter of 2003.

Hard-Disc Recorder Combines DVD With No Monthly Fee

Thomson is introducing two new RCA Scenium DVD players easily integrated into professional or custom home theatre systems. The RCA Scenium Digital Media Recorder DRS7000N (suggested retail price $599), is the industry’s first combination DVD player and personal video recorder, offering more than 30 hours of recording time and a convenient, no-fee GUIDE Plus+ interactive TV Guide. Another new RCA Scenium DVD product is the progressive scan DRS700N DVD player (suggested retail price $249) that can decode DVD-Audio discs.

RCA Scenium Audio Completes The Home Theatre

A powerful audio system completes the Home Theatre, and with 550 watts of full bandwidth, low distortion[1] power, the RCA Scenium Dolby Digital Receiver provides a powerful centerpiece for the home theatre enthusiast. The RT2660R (suggested retail price $299) is fully compatible with both DVD-Audio and SACD formats; supports Dolby Digital surround sound, DTS surround, and Dolby ProLogic II decoding; and includes an AM/FM digital tuner with 40 station presets.

Delivering exceptional sound in a chic, sophisticated package, the RCA Scenium Five-Satellite Speaker Package with Powered Subwoofer (model SP2660) unites the latest audio enhancements with expressive designs. The versatile speakers can be placed in home entertainment centers, mounted on the wall, or displayed using speaker table stands that are included. The subwoofer is powered by a built in 100-watt amplifier, and uses an eight-inch, non-pressed paper cone. Available this fall, the suggested retail price of the SP2660 speaker package is $699. Optional matching speaker stands are also available at a suggested retail price of $299.

[1] 110 watts per channel, two channels driven into eight ohms, at any frequency from 20Hz – 20kHz, with no more than 0.09% Total Harmonic Distortion. 110 Watts Front Left, Center, Front Right, Surround Left, and Surround Right.

 

Greg DePriest's

IBC 2002: A Conference Sampler

         Let me introduce you to one of my long standing friends in the HDTV field, Mr. Gregory De Priest. I first met Greg 16 years ago when he was  vice president of the Washington-based Technical Society for Broadcasters--MSTV. I believe Greg will own up to being one of the first, if not the first to see HDTV coming as a genuine threat to the free over-the-air broadcasters, He  saw it as a very valid reason to request a freeze at the FCC and thus blocking the agency from granting underused broadcast spectrum   to the land-mobile telephone industry. Land Mobile  were arguably on a winning path with the FCC until thwarted by the appearance HDTV. Greg went on to serve as vice president of Toshiba in this country where he oversaw the HDTV development laboratories established in New Jersey and later in Tennessee. He is now one of the most knowledgable consultants in the field today and brings us this "sampler" report from the International Broadcast Convention held last week in Amsterdam.

Europe turned their back on HDTV opting instead to tackle first a widescreen market using their old line counts in the PAL standard. They also had enjoyed a longer history in interactive television when teletext appeared and survived. Many in Europe now see interactive as a new revenue base with digital broadcasting and Greg brings us their views, which will undoubtedly leak into our own environment. Consider this a glimps of things to be tried._Dale Cripps

Greg writes us. "Since Europe is advancing in the development of interactivity, this topic was the highlight of the conference for me. The issue is squarely on the US agenda with ATSC's recent adoption of DASE ("DTV Application Software Environment") and the concurrent talk of "harmonizing" it with competing US cable and European middleware standards (respectively known as OCAP and MHP).

Many, myself included, believe interactivity is the next necessary step in the evolution of digital television for it permits broadcasters to increase the attractiveness of their content. As many European broadcasters are well along this path, we may learn from their experience. IBC was fortunate to have a number of experts freely offer valuable insights. .

Mine is not a complete report on the technical conference. Instead it is a sampler that reflects highlights of sessions yielding important messages for US broadcasters and others."


IBC 2002: A Conference Sampler

This year’s IBC technical conference was exceptional. Attendees from around the world gathered to hear industry leaders and panels on subjects ranging from broadband delivery to copy protection to digital terrestrial television.

Conference days were "themed" with one or more themes discussed each day. Con-sumer delivery and compression were discussed Thursday, interactivity on Friday, technology and other items on Saturday, digital rights management on Sunday, and d-cinema on Monday. It worked well. In fact, many valuable sessions competed with each other. You may find abstracts of all papers and sessions at www.broadcastpapers.com.

Some conference sessions were interactive themselves with audience participation in response to prepared questions. In Thursday’s session on "Delivery to the Consumer," the majority of the audience, mostly Europeans, voted their conviction that analogue will end in their home countries by 2010. The killer app? Interactivity.

Didier Ongena, a senior manager with Deloitte and Touche, conducted an analysis on the future of digital television for the European Commission. It is based on interviews with 50 major company leaders, not yet released and likely to be pessimistic when it is. He found that doubts about the final ROI prevents broadcasters from developing new media services such as interactivity which he believes are essential to attract viewers.

Looking ahead, he maintains PVRs (personal video recorders) will change the dynamic of digital television as consumer acceptance has been favorable. While they destroy brand awareness, Ongena expects "big" channels with quality programs to prosper.

Ongena thinks interactivity is the most important digital television issue as it has the potential to generate revenue. Yet he also believes that content companies lack the incentive to create interactive content as it increases costs.

Partick Barwise of the London Business School gave an excellent presentation on interactive television. In seven slides, which I’ll gladly forward, he provided a sober view.

Barwise contends consumers have a desire for more and better television, not interactivity. The future of terrestrial digital broadcasting in the UK will be driven by the shift to free-to-air (more content), better marketing, and, lastly, an increasing ability to exploit interactivity.

He believes interactivity must add value to regular programs. Viewers do not want to choose camera angles or plots. "Game shows and some sports" work well for e-potatoes while drama and comedy do not (couch potatoes do not want to be interrupted). On the other hand, interactive television can satisfy impulse purchases of low-cost items such as pizza and music.

Interactive advertising? To work, it must be easy. While still seen as expensive in the UK it does generate qualified leads. (A later presentation by Roger Randall, not covered here, expanded on this success story.)

His conclusions, among others, were that interactive television is "television-plus, not the internet on TV." Applications must be based on entertainment and closely related to content.

PVRs are a "wild card" that will take off over the next two to three years and pose a real threat to TV ad revenue. Yet they won’t change what people watch. Since churn among early PVR adopters is very low, they are a "big question mark over the whole television market."

Home servers? They will exist but don’t expect meta data to change the way people search for content. [I would love to argue this point.]

Those wanting to know more may wish to visit the London Business School’s site at www.predictionsmedia.com which discusses the longer and broader impact of digital technology on consumers.

Martin Haywood, CEO of the Henley Centre in the UK, gave a presentation titled "From Push to Pull." I’ve asked for his presentation as it contained a number of insights and approached the issue of interactivity from a different perspective than Prof. Barwise. He began by discussing how people view time spent watching television.

Those without a net connection consider it to be quality time. Yet most people spend a lot of time with the television on but not watching. How then, he asks, can they interact? In his view, television is becoming radio of the 21st century -- it’s on in the background.

Success with interactivity will come when broadcasters link net behavior to the broadcast environment and use all "channels" (media) to reach the viewer. It is unreasonable to view interactivity simply as a revenue generator in his opinion. A more realistic view is this:

Thus broadcasters should use interactivity to enrich the viewing experience, maintain contact with the viewer, and grow the brand.

My favorite related quote: "TV is either an event or a habit." Michael Grade

Dr. N. Chu of Motorola gave an interesting presentation on home networks and the implementation problems they face. She noted problems begin with system administration. No one but the home owner can fill the role in a cost effective manner yet most aren’t up to the task.

Another practical problem is connectivity. There are 27 million digital cable set-top boxes in the US, two thirds from Motorola, yet none have an interface to connect to a home network.

Motorola’s answer? Not surprisingly, it’s a new cable modem (SBG 1000) that includes 802.11(b), a better firewall, four port router and other goodies. With luck it’s easier for the home administrator to set up and maintain. List price is $350.

In referring to the way in which broadcasters classify audiences demographically, a 60-ish Michael Blaksted of Glamorgan University quipped the "results are just like me -- figures broken down by age and sex."

Clive Humby of dunnhumby poured cold water on interactivity (What iDTV Learn from Retail Loyalty Cards) then toweled it off with constructive suggestions. You can obtain a sense of his presentation by visiting his remarkably creative website (www.dunnhumby.com).

dunnhumby is a consultant for Tesco, a UK supermarket chain and receives nine billion pieces of information daily from its customer loyalty cards. iDTV can’t do that today and that’s a problem because "[t]here is no average customer. You must get the details to build the business plans."

After noting the current problems with iDTV, he then offered a number of solutions that enable broadcasters to receive more detailed information on viewers’ buying habits.

Will Pool of Microsoft used Thursday’s keynote to introduce Windows Media 9. It offers higher quality at lower bit rates than either MPEG-2 or MPEG-4 and provides a "home theater quality experience over dsl."

Pool sees WM9 giving broadcasters additional choices; for example, transmitting IP video as part of new service offerings. An invitation-only van demonstrated mobile reception during the show. (I did not see it.)

Widespread decoder availability permits content providers to choose among competing compression systems. Of course, encoding fees may be the determinative factor. Still, Microsoft is working with LSI houses to incorporate hardware decoders alongside standard MPEG decoders so all options will be available in future STBs. He specifically mentioned that Pace’s new box includes WM9.

PCs will likely decode in software and in doing so will eliminate the need for a STB in the home office (and perhaps elsewhere). So the timing of the movie experience over dsl may be limited only by the pace at which consumers download the new player from Microsoft’s web site. Net Cine, a French movie site, uses WM9 to download movies over the web. The demonstration was impressive.

Want to know more? Some IBC sessions will be available post show (next week) via the IBC Website as streamed video/PowerPoint’s. At first they will be available only to Delegates (those who paid to attend) and IABM members. Later they may be available to all. Of course the proceedings of the conference are also available though much of what I’ve described took place in non-papers’ sessions.

REVIEW

The 2002 Plasma + LCD Round-Up is now posted at www.projectorexpert.com.
The full review with photos will appear in the October 2002 issue of
Video Systems (www.videosystems.com).

Pete Putman
Roam Consulting Inc.

Reader Mail

Dear Friend,
I read a letter from one of your subscribers who complained about the lack of Direct TV's HDTV offerings.  I feel the same way. There's no place that I see on the Direct TV webpage to complain about it. This reader said that he's sent countless emails to Direct TV?  Where do you send them?  Do you have an address?

Thanks for you kind attention to this inquiry,

Thomas


How about you DirecTV people on this list. Can you provide this gentleman an answer? __Dale

Sign Off

THAT'S IT FOR TODAY. In the next edition of Page 2 I will provide  a synopsis of the question and answer period in the Washington hearings. It is clear to me that while we like to think this transition is a done deal many see it as no more than the down payment made. This is not a transition about enriching manufacturers nor enriching the government in their selling of spectrum or cable or DBS or even the Hollywood moguls, it is a transition for the betterment of generations to come, perhaps all of them. I will add one more note which is that there are many revolutions going on around the world. Things are not in the right balance and when that happens nations tip over. I don't know it if is possible, but it would certainly be a benefit if only the good guys wound up using HDTV to convey their messages. But, like you, I wonder just how you can keep the bad guys from taking it over and once again go about defining life by narrow measure and inflated egos. Until next time this is Dale Cripps saying it's getting clearer by definition.

 

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