NAB Convention Notebook...

April 9, 2002 |Miscellaneous

After “sleepless night,” CEA Pres. Gary Shapiro said he would begin meeting with CEA members on possibility of compromise on FCC Chmn. Powell’s DTV plan. CEA had indicated DTV tuner portion of plan would be unacceptable because of cost of adding tuners to low-priced TVs. However, Shapiro, in Mon. keynote at MSTV meeting during NAB convention in Las Vegas, indicated CEA was caught partly by surprise by Powell announcement and might have to “modify our initial reaction a bit.” Shapiro wouldn’t discuss possible shape of compromise, saying only that he would discuss issue with members and “see what we can do.” He told us later some members might find including tuner easier than others: “There is some room for discussion.” There were other indications at convention that CEA might seek stronger commitment on cable compatibility issues in return for agreeing to some version of tuner plan, although timing of tuner adoption also remained issue. -- MF

One of FCC’s biggest jobs for immediate future will be more accurately defining markets, both geographically and in terms of products, Comr. Martin said Mon. at breakfast sponsored by Shook, Hardy & Bacon. He said courts “certainly” seemed to be seeing broader market than just radio, for example, and issue was “something we have to address in a comprehensive way.” Martin said recent U.S. Appeals Court, D.C., decision on FCC ownership rules (CD April 3 p1) featured debate among judges, but only on “whether the Commission was wrong, or really, really wrong.” FCC is likely to begin clarifying its market decisions by end of year in series of current ownership rulemakings, Martin said. Overall policy isn’t likely, he said, but Commission has to consider impact of market decisions in one case on next case it will consider. Martin called FCC Chmn. Powell’s letters on HDTV “a very important start,” but said Powell plan (CD April 5 p1) “needs to have its details fleshed out.” He cited as details cable carriage and defining broadcast signal that should be carried, as well as compatibility issues, saying FCC needed to move quickly on them “to provide additional stability.” On other issues, Martin said: (1) He agreed with many portions of FCC’s recent decision that dual- dish DBS didn’t meet must-carry requirement (CD April 5 p5), but said he was “concerned” that limited remedies in decision were inadequate: “The broadcasters are entitled to more, and the consumers are entitled to more.” (2) It remained unclear whether FCC had authority over digital rights management issues, but he said agency needed to decide definitively whether it had, so parties could approach Copyright Office or others if it didn’t have authority. (3) Recent court decisions requiring FCC to more fully justify keeping rules might not be as big a burden as some thought. He said if FCC did good job of justifying them in first place, and then adequately could show market hadn’t significantly changed since rules were adopted, that should satisfy court without being too much of burden: “I think we should be undergoing that kind of comprehensive review anyway.” -- MF

Broadcasters and others are seeing some optimism on cable carriage of DTV, even without govt. mandate, they said at NAB convention here. Officials said cable was feeling competitive pressure from DBS carriage of HDTV, as well as from over-air broadcasts. CBS from start wasn’t supporter of govt.-mandated cable DTV carriage, Exec. Vp Martin Franks said: “We decided we wanted to create compelling content so we wouldn’t need must-carry to get carriage.” However, he said it had been harder than expected to acquire cable carriage: “When you hear about DBS competition and cable churn, I am surprised that we have had to work so hard to get carriage. HDTV seems to be the answer to their problem.” Speaking at MSTV meeting here, APTS Pres. John Lawson said few public broadcasters had carriage agreements, but “we're committed to giving negotiations a real shot. I am just a little puzzled about why it has been so difficult.” He indicated, however, there was some movement on cable carriage. NBC TV Stations Pres. Jay Ireland agreed there had been some progress on cable carriage. CEA Pres. Gary Shapiro said that until recently cable had ignored DTV, but several carriage agreement announcements were in pipeline. One key is for broadcasters to negotiate carriage of entire broadcast signal, not just primary video channel, from start, said Michael Fiorile, CEO of Dispatch Bcst. Group: “This is a decision that broadcasters are going to have to live with for a long time.” Lawson agreed that FCC decision that any carriage rules would involve only primary video channel was “devastating” for PTV, since public broadcasters plan to offer mix of primary PBS feed, children’s feed, other programming.

As larger group of broadcasters begin offering DTV there will be different incentives for industry -- with economic incentives emerging to encourage end to costly transmission of both analog and digital, said MSTV Chmn. Gary Chapman of LIN TV. He said that would further encourage broadcasters to push govt. to complete rules to encourage transition. Meanwhile, MSTV Pres. David Donovan said there was need for long-term spectrum plan. He also said FCC should delay planned June 19 spectrum auction: “It makes no sense going forward at this time.” MSTV will be focusing on defending broadcast spectrum from new interference as govt. encourages broadcasters to abandon upper channel and pack their broadcasts into already crowded lower channels, Donovan said: “The DTV dream is inextricably linked to government spectrum policies.”

Public TV fundraising for DTV transition is going well, said APTS Pres. John Lawson. He said public broadcasters had budgeted $1.7 billion for transition and they already had raised $750 million, with federal govt. money just beginning to arrive. As result, he said 69 PTV stations already had DTV on air, even though deadline for PTV transition was more than year away. He said that meant higher percentage of PTV stations than commercial stations had introduced DTV.

N.Y.C. broadcasters are “simultaneously cultivating all options” for new transmission site following loss of World Trade Center because of “potential problems” with every option, said William Baker of WNET-TV N.Y. and Metro TV Alliance. He called finding new common tower site “an urgent undertaking” because N.Y.C. broadcasting was $1.5 billion annual business and “with every day the losses mount.” Main candidate sites are in Jersey City, on Governor’s Island, in Brooklyn, downtown Manhattan, possibly atop new building that’s likely to be built on World Trade Center site, he said. Other options are either freestanding tower, which at 2,000 ft. would be tallest freestanding structure in world, or guyed structure. Baker said guyed structure would cost half of estimated $200 million for freestanding structure, but latter would generate less local opposition and require less land, but would take longer to build.

Thales Bcst. & Multimedia announced several new customers at convention, including Fox TV Stations Group, which will install Thales DTV transmitters at its stations. Others include Paxson, for which Thales will install network operations center, Meredith Bcstg. (DTV transmitters for 4 stations), Las Vegas PBS station KLVX (DTV transmitter). Thales also announced new low-power UHF DTV transmitter and new MPEG-4 encoder.

Williams Communications said it will launch broadcast- quality video delivery services over its IP network. Network is capable of delivering MPEG-2 video, firm said.

IBM announced partnerships with FreePlay Music and SintecMedia to provide digital rights management (DRM) for broadcasters, companies said here. New Electronic Media Management software (EMMS) is extension of FreePlay technology for audio files, expanding to text, video and streaming media, they said. Open-standard EMMS is intended to provide integrated infrastructure for tracking use of media files. It includes user authentication capability and back-office functions.

Zenith said it soon would begin field tests of DTV receiver incorporating latest NxtWave Communications tuner technology. Senior Vp Richard Lewis said new technology would give broadcasters option of trading bit rate for added robustness or portable standard-definition DTV.

International Electrotechnical Commission is to begin discussions of blue-ray optical discs April 23 in Tokyo, officials said here. Blue-ray technology would be rewritable and allow storage of more data than DVDs.

Opening of 900,000-sq.-ft. hall this year by Las Vegas Convention Center -- reachable by a skywalk over street -- has resulted in NAB’s adding new shuttle service serving only Center. It has only 4 stops, all at Center entrances marked by canopies, and runs every 10 min. during hours exhibits are open. Sony’s exhibit this year is largest ever at NAB, bigger than a football field.