CEAís Shapiro Clarifies Myths Perpetuated By The Broadcasters In Letter To Barton

Assures Continued Industry Support

15-May-05

The following letter was sent from Gary Shapiro, president and CEO of the Consumer Electronics Association (CEA), to Congressman Joe Barton (R-TX) in response to ongoing communication about the state of the digital television (DTV) transition:ìDear Chairman Barton,Yesterday, the National Association of Broadcasters (NAB) sent you a letter which perpetuates certain myths about the broadcast industry and the digital television (DTV) transition.In the interest of ensuring a rapid and consumer-friendly end to the DTV transition, we wish to set the record straight.Myth: The indefinite maintenance of analog broadcasting is critical for public safety. Fact: As Tuesdayís evacuation of the White House and U.S. Capitol reminds us, the gravest threat to our safety is another national calamity like we suffered on September 11, 2001.Again, we are reminded that the 700 MHz spectrum band held by the broadcasters will be necessary to allow a swift and effective response by police, firefighters, and other first responders.For this reason, the Association of Public Safety Communications Officials (APCO) recently sent you a letter decrying ìNABís cavalier dismissal of public safety needsî. APCO implored you to set a hard analog cutoff date, explaining that, ìthe security of our homeland and the lives and property of our citizens as well as our responders are at stakeî.Myth: Broadcasters are not profiting from the DTV transition.Fact: The greatest transfer of public to private wealth in history was the ìloanî of additional spectrum to the broadcastersóan arrangement that the Wall Street Journal described as, ìa multibillion dollar handout for wealthy TV station ownersî. With their intransigence over a hard deadline, NAB now seeks to transform the loan into a permanent gift.Myth: 19% of all U.S. homes rely exclusively on overñtheñair broadcast.Fact: NABís numbers are undercut by figures provided by its own members and the Federal Communications Commission (FCC). In recent FCC filings, Sinclair Broadcasting estimates 13% over-the-air reliance, and Capitol Broadcasting puts the figure at 13-17%. The Walt Disney Company places the percentages at 9.1% in New York, and 15.3 percent in Los Angeles. The FCCís most recent estimate is 14.86 percent. In any event, the rapid increase in subscriber households makes the trend line clear and the NAB numbers wishful rather than real.NAB can shuffle its numbers, but it cannot escape the facts: over-the-air broadcast is the choice of a small and rapidly declining minority of American households. At the same time, of course, we encourage Congress to explore ways to minimize any adverse effects of an analog cut off. Myth:Every television not hooked up to cable or satellite is used to receive over-the-air broadcasts.Fact: NAB implies that every TV set not hooked up to cable or satellite in subscriber homes is used for OTA reception. The fact is that in cable and satellite homes, unconnected sets are primarily reserved for use with VCRs, DVD players, and/or video game systems.

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