Response To Comments By MSTV President Donovan On Centris Study Concerning DTV Receptivity Gaps

[The following is a release from Centris]

April 17, 2008

David Klein, Executive Vice President, Centris: Centris is a media and entertainment market research company with a dedicated focus of ensuring that our industry is educated and poised for a smooth DTV transition. The Centris methodology is and has always been available to those who are willing to participate in constructive and objective dialogue. To date, it has been shared with leaders in Congress and numerous associations and government organizations including the FCC and NAB, who have all reviewed and provided constructive feedback. This is standard practice for any syndicated study conducted by a private organization that provides information to third parties looking to gain a competitive advantage in the marketplace. Our methodology incorporates both the Longley-Rice model as well as our own proprietary MarketView model which provides estimates of Over the Air households down to the Census Block Group level. We remain of the opinion that our estimates are conservative with respective to coverage predictions for reasons clearly outlined in our methodology. (The study assumes that consumers had a small or medium roof-top omni-directional antenna. In fact, our surveys show that 75%-83% of consumers have indoor set-top antennas; 10%-12% have omni-directional and 10%-12% have directional antennas.) Our findings are consistent with results observed by the British Office of Communications (Ofcom) during their digital TV transition where they found that 30% of rooftop antennas had to be upgraded and that 50% of indoor antennas did not work reliably. We have advocated that consumers be forewarned about the potential for reception difficulties and that they may need to upgrade their existing antennas should such problems emerge. If consumers are not educated about such problems they may incorrectly conclude that reception problems are due to flaws in converter boxes and might then proceed to return their converter boxes to retailers. That would be an unfortunate consequence and one that may be preventable. Centris has no vested interest in any one constituency or any particular piece of technology, and has not recommended that consumers purchase any additional equipment or technology unless it is needed. Our aim is to ensure that all issues impacting the DTV transition (including local reception issues, consumer awareness locating and profiling over-the-air-households on a local basis) are being addressed to achieve a successful move from analog to digital TV for all stakeholders. We stand committed to offering national and local market intelligence to all organizations that are looking for more strategic marketing solutions for the DTV transition.

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