Retransmission tussle could benefit those with rabbit ears
By PETER CARANICAS - VARIETY MAGAZINE
Posted: Fri., Feb. 19, 2010, 10:00am PT
As the tussle over retransmission consent fees continues to play out between broadcasters and the cable biz, one factor that's been largely overlooked is the easy availability of free over-the-air TV via rooftop or indoor rabbit-ear antennas.
When Time Warner Cable and Fox engaged in their public ad blitz and brinksmanship in December, with the cable guys threatening to throw the broadcast bums off the air if they didn't stop demanding excessive fees for the right to retransmit the Fox package of services, no one bothered to inform consumers that much of the Fox programming -- including the ever-popular "American Idol" -- is available for free to almost anyone who purchases a cheap indoor antenna (prices range from $4.99 and up at Radio Shack).
That's the only way nearly 10% of U.S. households receive "Idol" and countless other broadcast shows, according to Nielsen. The other 90% get them via cable or satellite.
But two things are happening that could help "free" over-the-air TV stage a comeback.
First, the cost of cable continues to rise, spurred in part -- say cable operators -- by the very retransmission fees that broadcasters are now charging cable systems to carry their signals.
"Every time our contracts with TV program providers come up for renewal… we face price increases," Time Warner Cable declared on its RollOverOrGetTough.com website mounted to spin its side of the story during the year-end skirmish with Fox. "Sometimes we can avoid passing them on to you. Sometimes we can't."
The second factor working in favor of over-the-air TV is the government-mandated transition to digital broadcasting last June. The technology has allowed local broadcasters to offer viewers stronger, clearer signals and multiple new services that could eventually challenge cable's channel cornucopia.
"The phenomenon of cutting the cable cord will only grow," says National Assn. of Broadcasters exec veep Dennis Wharton. "Add to that the lingering recession and there's opportunity for a renaissance in over-the-air broadcasting."
Seven months after the digital switchover, many large-to-mid-market broadcasters have adopted the strategy of using a large portion of their spectrum to beam their main channel in high definition and the balance to carry two or three standard-definition "multicast" subchannels offering such fare as 24-hour weather, lifestyle or syndicated programming.
Other broadcasters have opted to slice their digital spectrum into eight -- or sometimes even more -- standard-def subchannels. For example, Los Angeles station KSCI, which brands itself as LA 18, broadcasts programming to the area's burgeoning Asian population on subchannels 18.1 through 18.8.
"We decided the best use of the spectrum was to not broadcast in HD but to provide a suite of Asian-language channels," says Peter Mathes, a former Chris-Craft Television exec who is now CEO of privately held parent company Asian Media Group. LA 18 programs and sells time on two of the channels and leases out the other six for a flat fee while keeping some of their advertising inventory.
"The digital spectrum is what allowed us to offer all the channels," says Mathes. "Anecdotally we hear stories that at least within the Asian communities many people have left cable and satellite because they've got such an abundance of over-the-air channels right now."
"There's a lot of stuff available over the air," concurs Paul Karpowicz, prexy of Meredith Local Media Group, which owns 12 stations in mid-sized markets including Atlanta, Kansas City, Mo., and Las Vegas. "As more viewers look at their cable bills they'll say, 'You know, what if I get a good antenna and try that for a while?' "
But others question whether the abandonment of cable for over-the-air reception will ever amount to more than a trickle -- even with cable fees continuing to rise.
"I don't ever see that becoming so widespread that there's a dramatic change in the economics of the industry," says one exec from a Big Four network. "Just because it's available to consumers, it doesn't mean they'll do it. They watch broadcast more than any of the cable channels, but they still want to be able to get ESPN, the Fox regional sports networks, and the general-entertainment (cable) channels that are doing original programming."
"Most people are willing to pay for a subscription-based service, in part because they
like choice beyond local broadcast stations," says Barry Faber, exec veep and general counsel at Sinclair Broadcast Group, which owns nearly 60 TV stations and is known for its aggressive stance in retrans negotiations with cablers. "But if it doesn't include the broadcast stations, it's not a service they want to buy."
While large-scale abandonment of wired TV for over-the-air reception may be cable's worst-case scenario, it would be no picnic for broadcasters, either. After all, they're only starting to get used to the dual revenue stream of advertisers buying time and cablers paying retrans coin. Market research firm SNL Kagan predicts that such fees will grow substantially in the next few years to approach $2 billion by 2013.
Maybe that's why no one ever seems to bring up the over-the-air option whenever there's a public debate over the high cost of cable.
"When you look at the percentage of people who get their TV service from cable, clearly that's where we have to be," says Meredith's Karpowicz. "We absolutely want to be carried on cable. All we're asking for in our retrans discussions is a fair exchange for the value we bring to the cable system."
Read the full article by clicking the RELATED link
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Fred's Note: While I agree with the idea that Free TV is making a comeback, I really don't feel comfortable with "indoor antennas". Since WLIO and WOHL started transmitting digitally, 95% of all viewer complains are due to INFERIOR indoor antennas. Now, I understand that people want something cheap, but when you go on the cheap, expect cheap results. And unfortunately, when you watch the Olympics and the picture freezes and pixilates, you get the results that indoor antennas give you.
If you don't want to get mad, and don't want your TV viewing ruined, the solution is a medium size outdoor antenna. Get the antenna out in the open, and positioned towards the station and you won't have problems.
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( 3 / 336 )This is interesting; seems this Chuck Norris Webbot is programmed to search out and infect not only loosely protected cable modems and routers, but satellite TV receivers as well.
If you haven't changed the default password on your home router, you may be in for an unwanted visit from Chuck Norris -- the Chuck Norris botnet, that is.
Discovered by Czech researchers, the botnet has been spreading by taking advantage of poorly configured routers and DSL modems, according to Jan Vykopal, the head of the network security department with Masaryk University's Institute of Computer Science in Brno, Czech Republic.
Click on RELATED below to her the whole story.
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( 3 / 334 )Comcast and NBCU reaffirm commitment to broadcast TV
Comcast CEO Brian Roberts and NBC Universal CEO Jeff Zucker used appearances before the House Subcommittee on Communications, Technology and the Internet to insist that cable giant Comcast is firmly committed to broadcast television if it is permitted to acquire control of NBCU.
In fact, they insisted, the deal will help to preserve the broadcast TV business.
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( 2.9 / 389 )MEDIA BUREAU SEEKS COMMENT ON TIVO’S REQUEST FOR WAIVER OF THE IEEE-1394 OUTPUT REQUIREMENT
CS Docket No. 97-80 / CSR-8252-Z
Comment Date: February 22, 2010
Reply Comment Date: March 4, 2010
TiVo Inc. (“TiVo”) has filed a request pursuant to Sections 1.3, 76.7, and 76.1207 of the Commission’s rules1 for waiver of part of Section 76.640(b)(4) of the Commission’s rules.
Section 76.640(b)(4) requires cable operators to include a DVI or HDMI interface and an IEEE 1394 interface on all high definition set-top boxes (“STBs”) that they acquire for distribution to customers.
TiVo seeks waiver of this rule with respect to the IEEE 1394 interface requirement on behalf of cable operators who wish to deploy the TiVo high definition digital video recorders (“HD DVR”) models sold at retail.
TiVo states that, at the time the regulation was adopted, the IEEE 1394 interface was the only digital video interface available for consumer devices that supported recording devices and networking.
TiVo asserts that since the time the regulation was adopted, the cable industry has moved away from the IEEE 1394 connection to widely deployed Internet protocol (“IP”) technologies. TiVo argues that the IEEE 1394 interface requirement was implemented to ensure leased devices would interoperate with consumer purchased equipment.
Consequently, TiVo argues that its HD DVR already meets this core objective by including home networking compatibility with products its consumers use most, IP-enabled devices.
TiVo argues that a waiver will advance choice and competition in cable navigation devices. TiVo explains that its value to cable operators is through offering a popular retail product for use as a leased set-top box with no hardware modification, available at a lower cost.
TiVo argues without a waiver, the cost of adding an IEEE 1394 port would make the TiVo HD DVR less cost-competitive against the HD DVRs that cable operators currently lease and thus reduce competition. Further, TiVo argues that adding the IEEE 1394 port would delay the introduction of competition into the cable set-top market with no resulting benefit to the cable operator or consumers.
TiVo explains that its requested waiver is justified because cable operators can continue to deploy devices to subscribers who request a set-top box with an IEEE 1394 interface. Consequently, TiVo argues a waiver of the IEEE 1394 interface requirement would cause no harm to other interested parties. We seek comment on TiVo’s request.
This proceeding will be treated as “permit but disclose” for purposes of the Commission’s ex parte rules. As a result of the permit-but-disclose status of this proceeding, ex parte presentations will be governed by the procedures set forth in Section 1.1206 of the Commission’s rules applicable to nonrestricted proceedings. Comments and oppositions are due February 22, 2010. Petitioner’s reply is due March 4, 2010. All filings must be submitted in CS Docket No. 97-80 and CSR-8252-Z.
Pleadings sent via e-mail to the Commission will be considered informal and will not be part of the official record. Interested parties will have access to comments online through the Commission’s Electronic Comment Filing System (ECFS), and therefore we waive the requirements of Sections 76.7(b)(1) and 76.7(c)(1) that comments and oppositions be served on interested parties.
Comments may be filed using: (1) (ECFS), (2) the Federal Government’s e-Rulemaking Portal, or (3) by filing paper copies.
Electronic Filers: Comments may be filed electronically using the Internet by accessing the ECFS: http://www.fcc.gov/cgb/ecfs/ or the Federal eRulemaking Portal: http://www.regulations.gov. Filers should follow the instructions provided on the website for submitting comments.
For ECFS filers, in completing the transmittal screen, filers should include their full name, U.S. Postal service mailing address, and the applicable docket number: CS Docket No. 97-80. Parties may also submit an electronic comment by Internet e-mail. To get filing instructions, filers should send an e-mail to ecfs@fcc.gov, and include the following words in the body of the message: “get form”.
A sample form and instructions will be sent in response. Paper Filers: Parties who choose to file by paper must file an original and four copies of each filing. Filings can be sent by hand or messenger delivery, by commercial overnight courier, or by first-class or overnight U.S. Postal Service mail (although we continue to experience delays in receiving U.S. Postal Service mail). All filings must be addressed to the Commission’s Secretary, Office of the Secretary, Federal Communications Commission.
Effective December 28, 2009, all hand-delivered or messenger-delivered paper filings for the Commission’s Secretary must be delivered to FCC Headquarters at 445 12th St., SW, Room TW-A325, Washington, DC 20554. All hand deliveries must be held together with rubber bands or fasteners. Any envelopes must be disposed of before entering the building. The filing hours are 8:00 a.m. to 7:00 p.m.
Commercial overnight mail (other than U.S. Postal Service Express Mail and Priority Mail) must be sent to 9300 East Hampton Drive, Capitol Heights, MD 20743.
U.S. Postal Service first-class, Express, and Priority mail must be addressed to
445 12th Street, SW,
Washington DC 20554.
One copy of each pleading must be sent to Brendan Murray, Media Bureau, Room 4-A737, 445 12th Street, S.W., Washington, D.C. 20554 or Brendan.Murray@fcc.gov.
Copies of the Waiver Request and any subsequently filed documents in this matter are also available for inspection in the Commission’s Reference Information Center:
445 12th Street, S.W.
Washington, D.C. 20554
(202) 418-0270
Alternate formats of this Public Notice (computer diskette, large print, audio recording, or Braille) are available to persons with disabilities by contacting the Consumer and Governmental Affairs Bureau at (202) 418-0530 or (202) 418-7365 (TTY).
For further information, contact Brendan Murray of the Media Bureau, (202) 418-2120. Press inquiries should be directed to Janice Wise, (202) 418-8165 or Janice.Wise@fcc.gov.
TTY: (202) 418-7172 or (888) 835-5322.
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( 3 / 311 )DIGITAL TRANSLATOR OR DIGITAL LPTV APPLICATIONS
FOR ORIGINAL CONSTRUCTION PERMIT ACCEPTED FOR FILING
CENTRAL OHIO ASSOICATION OF CHRISTAIN BROADCASTERS
Construction permit for a new station for KENTON, OH on channel 49 in Kenton OH.
(click related for FCC document)
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( 3 / 333 )I would have to say, NO. The home antenna is being realized by more and more people whom are giving up cable and satellite services for over the air reception.
Some people are doing this because of economics. Others because of service issues. In the case of satellite, it's because satellite is offering only local stations in SD rather than HD.
And for those in Logan, Hancock, Hardin, Henry, Mercer, Paulding, Shelby, Van Wert, Wood, & Wyandot there is another issue. Cable systems have dropped WLIO and your hometown stations after several decades of providing us to viewers. Satellite companies will not provide us. So if you want your hometown stations, an antenna is it!
Think this is just something happening around Lima? The following is from a news story in Los Angeles CA.
Southern Californians are rediscovering over-the-air television. Ethnic communities are most actively adopting broadcast TV, according to the Los Angeles (CA) Times. Around 20,0000 Asian-American homes in Southern California switched to over-the-air TV last year (2009). Around 8,000 African-American homes switched to free reception. Among all demographics, Latinos have the highest reliance ib over-the-air reception in Southern California, with around 440,000 homes, about one-fourth of the TV households in that demographic, using rabbit-ears, Yagi, or other types of antennas
The Los Angeles market, the second largest in the United States, has some 70 over-the-air channels, many of them with Asian, or Spanish language content. Not all 70 come in across the entire market, but enough to induce Orange County resident Mike Mahan, who told the Times, he was tired of paying for channels he never watched.
Richard Schneider of Antennas Direct in St. Louis, told the Times his sales have gone "through the roof." Sales tripled since the DTV transition, he said. Antennas Direct now sells around 100,000 units each month.
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( 3 / 347 )From the Worldwide TV FM DXing reflector....
I found this information interesting and thought I'd pass it along. While it's currently 18 degrees F. in Indy, I can read and dream about the next antenna project. Enjoy and Happy New Year to all DXers!
http://www.antennahacks.com/Hacks/DB8Co ... etails.htm
http://www.antennahacks.com/
Steve
Indianapolis, IN
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( 3 / 415 )From one of our sharp eyed viewers, he send this link to see where the NFL games are carried in the U.S.
http://www.the506.com/nflmaps/
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( 2.9 / 483 )By David Migoya - The Denver Post
Quietly, almost imperceptibly, the last of the government-issued coupons toward the purchase of a digital television converter box expired Monday.
After months of hand-wringing over the switch to all-digital TV signals and cries from Congress and the White House to delay the transition by four months because the country was unprepared, Americans managed to redeem just over half of the 64.1 million coupons that were distributed, federal records show.
On Monday, the final 200,000 coupons mailed by the National Telecommunications and Information Administration in mid-August weren't worth the plastic they were printed on, hitting the 90-day expiration date.
"The DTV coupon program was a tremendous success," NTIA Administrator Lawrence Strickling said. "It educated millions of Americans about how to prepare for the transition and helped millions of households with the cost of purchasing a converter box."
Colorado ranked among the top states, with a 56 percent redemption rate — roughly 502,000 coupons of 896,000 issued, records show.
Redemption rates are somewhat misleading, as the agency counts coupons redistributed to a different consumer after they had expired unused.
The agency did not know how many coupon requests came in after the deadline in August. Also unclear is the number of households that still haven't upgraded for the transition.
With about $1.8 billion in funding to help Americans ready for the transition by offering $40 toward the purchase of a converter box, more than $500 million remained unused, according to rough estimates.
Some states had poor redemption rates — Hawaii ranked lowest at 40 percent — while Iowans were tops, with a 64 percent redemption rate.
Barring any congressional mandate, unused funds will return to the general fund. People still in need of converter boxes will be on their own.
Store shelves are largely devoid of the boxes, leaving anyone with an analog TV set with few choices.
"Sales have dramatically dropped since the spring," Wal-Mart spokeswoman Melissa O'Brien said. "We'll have a few converter boxes at the stores and some online, but the big need has largely passed."
The coupon program ran through a variety of problems, the worst when coupons expired and consumers weren't allowed to acquire replacements. That changed in March when consumers were allowed to reapply.
A coupon-request backlog spurred Congress to move a Feb. 17 date for stations to go digital to June 12.
David Migoya: 303-954-1506 or dmigoya@denverpost.com
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( 3 / 467 )DX is an abbreviation for "distant listening". There are people that enjoy the hobby of trying to receive distant stations.
I was pleased to get this E-mail from a member of the Worldwide TV FM DX Association, or WTFDA for short. Mike is an accomplished DXer with many receptions to his credit. Here is a copy of his post to me.
We have a local LP-DTV on ch 8 that makes it tough to get WLIO. Before June 12 we had a full power analog on ch 8, WISH-TV. However, after the transition and before WIIH-DT 8 signed on I was able to pick up WLIO-DT 8 on August 3rd in the morning.
The distance is a respectable 125 miles from your xmitter to my antenna. I have attached the screen shot taken by my camera.
At that time WLIO did not have the call letters in the PSIP.
Also attached is how WLIO analog channel 35 looked in Indianapolis before the shutdown.
Mike Glass
Indianapolis
Digital - Zenith DTT900, RCA ATSC11
Analog - Samsung 12"
Low Band - Winegard HD7084P at 30' AGL
High Band - pair F1922-5/12s at 35' AGL
UHF - pair 91XGs at 40' AGL
Misc - Icom PCR-100
Current count - 203 analog, 153 digital
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