Shapiro Urges Congress To Focus Broadcasters On HDTV Content And Maintain Momentum

26-Jul-00

Testifying before the House Commerce Committee Subcommittee on Telecommunications, Trade and Consumer Protection, Consumer Electronics Association (CEA) President and CEO Gary Shapiro described a successful consumer transition to digital television (DTV) characterized by broad product offerings, increased programming from alternative media sources, steady sales, and high consumer satisfaction with DTV products. According to Shapiro, broadcast industry delays in delivering significant HDTV programming and its potential misuse of the DTV spectrum to provide subscription data services could put the transition's current momentum at risk.TV manufacturers have introduced approximately 200 different products and DTV is available at hundreds of retail locations across the country. Already, more than 300,000 DTV products have been sold to dealers (including DTV and HDTV monitors, integrated sets and stand-alone set-top boxes), representing a consumer investment of nearly $800 million.""There is no doubt that, after ten years of research and development, the consumer electronics industry has upheld its end of the bargain by making a wide selection of digital television products available at retail,"" stated Shapiro.Shapiro referenced retailer reports and a recent survey of DTV owners to demonstrate consumer satisfaction with DTV products. ""Consumer satisfaction with DTV is high,"" Shapiro stated. ""Indeed, a recent survey by the National Consumers League indicates that DTV owners are overwhelmingly satisfied with the performance of DTV products, although they are dissatisfied with the amount of available broadcast programming.""Shapiro pointed out that while consumers have little access to quality HDTV programming from broadcast sources, content from other media is increasing. Consumers have access to HDTV programming nationally from satellite providers like DIRECTVÆ and Echostar. Some cable providers are offering HDTV service and recent agreements between the consumer electronics and cable industries open the door for increased HDTV content via cable. In addition, many consumers are upgrading to HDTV to enhance their analog TV and DVD experience.""We are pleased with this explosion in non-broadcast DTV programming. While the broadcasters are important, the fact is that two-thirds of Americans receive their primary video signal through cable, and an additional 12 million consumers through direct-to-home satellite. While we remain committed to ensuring that all Americans have access to the wonders of digital television, we expect these trends to continue and increase in the digital world,"" stated Shapiro.Shapiro reiterated the industry's support for the current broadcast standard. ""We do believe that the existing, FCC-approved 8-VSB transmission standard is the best choice for the U.S. broadcast environment,"" he said. ""The 8-VSB standard was chosen by broadcasters after a decade of testing because it allows broadcasters to replicate the current radius of analog service to fixed receivers, does not interfere with existing analog signals, has a data capacity sufficient for HDTV, and allows for efficient power use. The standard has been reaffirmed by recent tests, such as those conducted by CBS, as well as the 'real world' usage by consumers.""Recounting earlier promises by the broadcast industry to deliver HDTV programming in return for their free use of valuable public spectrum, Shapiro urged Congress to ""focus broadcasters on increasing the amount of high-quality content while keeping the transition moving forward. The broadcast industry's failure to deliver significant programming and renewed squabbling among some broadcasters over the transmission standard could threaten the public's confidence in the new technology.""""Having received their public spectrum, we believe that all broadcasters now have the obligation of keeping their end of the bargain. Broadcaster decisions to use the spectrum primarily for services other than delivering free over the air television abrogates the agreement with Congress and denies the public trust. If we interrupt the public's confidence in the DTV transition, it may take years to recover,"" said Shapiro.For a copy of Shapiro's full testimony, log on to www.DTVweb.org.CEA is a sector of the Electronic Industries Alliance (EIA). CEA represents more than 600 U.S. companies involved in the development, manufacturing and distribution of audio, video, mobile electronics, communications, information technology, multimedia and accessory products, as well as related services, that are sold through consumer channels. Combined, these companies account for more than $60 billion in annual sales.CEA also sponsors and manages the International CES - Your Source for Workstyle and Lifestyle Technology. All profits from CES are reinvested into industry services, including technical training and education, industry promotion, engineering standards development, market research and legislative advocacy.

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