Digital TV Facts: The Latest

TV Sales: Samsung remains the top-seller in LCD TVs, with Sony overtaking Philips for second place….Best Buy earnings, pressured by “significant product transitions in the flat-panel TV business,” fall 18 percent.

The Day Analog TV Died, as imagined by Medialoper: “I was damn sure we’d had another one of them 9-11-style attacks and that this time the terrorists killed our TVs.”

Microsoft rebrands its IPTV platform: The new name, Microsoft Mediaroom, is passable. But the logo that may, one day, dominate your remote control? Sheer genius.

…well, sort of. You can buy a DTV converter box alternative for your old analog TV today—as long as you don’t mind paying for (and perhaps even enjoying) extra features like DVD recording.

A DVD recorder, equipped with a built-in digital tuner, can solve the “2009 problem” faced by analog TV owners who watch over-the-air broadcasts using an antenna. When analog broadcasts meet their demise on February 17, 2009, many of those viewers will switch on brand-new, government-subsidized DTV converter boxes. But new DVD recorders, starting at about $145, can also tune in digital TV broadcasts.

Some models, according to user reports, are not without problems. For a look at the benefits and drawbacks, see our story on DTV converter box alternatives.

Read more:
• DTV Converter Box Alternatives
• DTV Converter Boxes
• DTV Converter Box Coupons

DirecTV’s expanded HBO HD channels debut in September.

New entry-level Bravia LCD TV line from Sony this summer; Philips expands 1080p flat-panel line, including 120Hz-refresh-rate technology.

New White House insider Ed Gillespie: Background includes lobbying for Qualcomm on DTV transition.

Civic groups urge FCC to adopt public-interest mandates for digital TV.

Democrat Dingell raps FCC for not naming a broadcaster to its DTV transition Consumer Advisory Committee.

GOP Senators back cable companies in auction of analog TV spectrum; but public-interest groups have a better plan.

Network neutrality: Last day to send comments to FCC is tomorrow.

Consumers who own analog TVs equipped with stereo sound may, after attaching a DTV converter box, suffer a downgrade to mono. The problem: While the spec for converters eligible for the federal government’s DTV coupon program allows the boxes to include stereo capability, the feature is not required, according to a report in Broadcasting & Cable. The report suggests that at least some converter box manufacturers are not including stereo support.

“For about the cost of a postage stamp, stereo sound can be incorporated into the box to ensure a consistent viewing experience while meeting the current implementation deadlines. We need to ensure that millions of Americans will not lose their stereo sound as a result of the self-imposed deadlines,” said Les Tyler.

The converter boxes will allow conventional televisions to survive the shift to digital-only broadcasts after February 17, 2009.

Having your TV-listening demoted to mono sounds like a bummer to me. But it’s probably not a show-stopper for most consumers. Many of these TVs probably don’t have stereo sound in the first place. If you asked analog TV owners, many would struggle to say whether they have the feature or not. (An astounding number of HDTV owners think they’re watching shows in HD, yet have no source of HD programming.)

As I see it, the people who are likely to actually get steamed about this fall into two distinct groups:

1. Folks who care…uh…somewhat…about how their TV sounds. But not so much about the picture. And not enough about either to buy an HDTV.

2. People who sell stereo technologies developed for analog TVs.

Mr. Tyler, as you may have guessed, happens to fall into that second category. He is the CEO of That Corp., an analog integrated circuits company that licenses audio technologies. He was also involved in developing the analog TV stereo standard during the 1980s, according to B&C. For that, we owe him a debt of gratitude.

But Les Tyler doesn’t want our thanks, it seems. What he wants are Congressional hearings.

If people can compare DTV converters side by side, and the price for a stereo-capable one isn’t much higher, the mono models will lose out on some sales. Presumably, that is a calculation that converter-box manufacturers have already made.

• Links: B&C, press release

Tweeter, the consumer electronics retailer, has filed for Chapter 11 bankruptcy. The 130-store regional chain has been squeezed by falling prices on flat-panel televisions, competition Wal-Mart and other mass retailers, and a market shift away from projection TVs, a Tweeter specialty.

Given America’s recent HDTV buying binge, you might think it would be the perfect time to be in the business Tweeter is in. But shrinking margins are a killer, and even its much-larger rival Circuit City finds itself under pressure. Despite the current environment, however, Best Buy profits are up 18.5 percent last quarter.

Tweeter also operates stores under the names Sound Advice, HiFi Buys and Showcase Home Entertainment. The company plans to continue operations as it reorganizes under bankruptcy laws.

Today’s Tip: Waste no time. Tell your broker you have a new rule, starting today. Anytime a company pulls its name off an arena, it’s time to SELL.

• Link: Reuters

A novel alternative to the converter-box coupon subsidy, from Nolan Bowie at Harvard’s Kennedy School of Government:

A better solution would be for Congress to provide subsidies in the form of means-tested “digital TV credits” to enable low-income families to purchase basic digital TV-video offerings from a multi-channel video service provider, whether that be a phone company or cable TV or satellite TV service. Congress could then make better and more efficient uses of the public airwaves by reallocating much of the television broadcasting spectrum for unlicensed broadband. This would help ensure universal access to high-speed broadband connectivity to the Internet and alternative forms of information, news, and entertainment.

Pay TV subsidies? I don’t think so. At $80, two digital TV adapter coupons enable a viewing household to receive several more years of broadcast programming. The same amount buys perhaps a month or two of cable or DirecTV (assuming you can wangle a free-installation deal).

He muffs the coupon program’s details and the distinctions between HDTV and SDTV. Nonetheless, Bowie’s proposal, while tardy and, let’s face it, dead on arrival, raises relevant issues. A drive to assure fast, cheap, network-neutral broadband access for all Americans would benefit the nation more than outdated federal policies (including mandated cable carriage) that indirectly subsidize TV broadcasters.

Bowie frets that DTV multicasting will exacerbate media-ownership concentration:

Once the transition into digital is completed, a single firm like Clear Channel or General Electric could, by maximizing the number of radio and TV channels ultimately have as many as 58-100 broadcast voices in the same community by compressing their digital frequencies.

Media concentration remains a huge problem, but multicasting doesn’t necessarily make it any worse (especially if it merely subdivides an already concentrated audience—which would amount to a small improvement, actually). But if Kevin Martin succeeds in greasing the wheels for multicast must-carry, smaller stations with fewer resources could lose audience share to stronger competitors who can program multicast channels more efficiently.

In the unlikely event that broadcasters find a way to offer multicast fare compelling enough to capture a meaningful audience, they might even win back some of the pay-TV audience. The way things are going now, however, I don’t think we’re heading into a new era of broadcast dominance. The more likely scenario is an acceleration of audience splintering, continued erosion of broadcast audiences, and eventual pleas from station owners for fresh forms of government help as smaller stations struggle for survival in an overchanneled era. The amount of spectrum dedicated to over-the-air television in the U.S. may actually be excessive, as Bowie contends.

Rather than concocting new schemes for bolstering broadcast hegemony, the FCC must come to terms with the changing communications landscape. Martin should put broadcasters on notice: they face a reinvent-or-die scenario, and now is the time—if it is not, in fact, already too late—to reimagine their future.

More on the future of TV:
• The system is broken
• What’s wrong with the FCC?
• Will TV’s new rules serve big players or public?

• Link: Boston Globe

Wal-Mart, adding new flat-panel TVs from Vizio and Sony, will also add “HDTV specialists” to electronics departments on a test basis.

(They’ll wear yellow shirts…in a subliminal attempt to convince shoppers they’re at Best Buy.)

The Walton World approach contrasts with troubled Circuit City, where product specialists are being eliminated.

Wal-Mart is one megaretailer that has, thus far, steered clear of the storm of analog-TV labeling citations raining down from the FCC—its compliance made easier, no doubt, by its decision to dump analog models last month.

Earlier:
• High-end plasma, LCD TVs at Wal-Mart’s upscale prototype

• Link: TWICE

The FCC issued citations to four more large retailers Thursday, saying they failed to display appropriate “consumer alert” notices near analog-only TVs offered for sale on their web sites earlier this month.

Amazon.com, Sears, J&R and Fry’s received the latest warnings. According to Broadcasting & Cable’s John Eggerton, “hundreds of citations” may be on the way for these and other stores. Since May 31, FCC citations have also been issued to Kmart, Best Buy, Circuit City, Radio Shack, and CompUSA.

The required consumer alerts warn purchasers that conventional TVs not equipped with digital tuners will need a DTV converter box to receive over-the-air broadcasts after February 17, 2009.

Here’s what struck me: One of the seven models listed in the citation letter to Amazon was a Syntax Olevia 32-inch LCD flat panel, model LT32HVE. Amazingly, the same model number appeared in a list of TVs manufactured by Syntax-Brillian that the FCC says were imported and shipped in violation of the digital tuner mandate. So what we have, apparently, is a chain of rule-breaking extending from manufacturer to retailer. In the end, consumers who don’t know about the DTV transition are being harmed. It’s heartening to see the FCC take action.

The commission warned retailers to expect fines of up to $11,000 a day, limited to $97,500 per violation, for any future breach of its analog TV labeling rules.

Critics portray the digital TV adapter coupon program as “TV welfare” and a drain on the federal treasury. But if the FCC uncovers enough violations, who knows—the digital transition could turn into a profit center. They clearly need one, too, now that Cher can say the F word for free. Anyway, the enforcement bureau found a consumer-friendly way to usher in this new era, closing out the uniquely memorable week in which Chairman Kevin Martin managed to put the F back in FCC.

• Link: B&C

Digital cable set-top boxes: Should you buy or rent? As of July 1, you have the choice.

PSAs about digital conversion: Bill from Rep. Engel (D-N.Y.) would mandate them.

Still hiring for the DTV switchover: Broadcast lobby seeks Director of External Relations, Digital Television Transition.

C-SPAN-style TV for local government: This would be worthy programming for multicast channels.

ATI video cards: ‘Upgrade’ saddles owners with broadcast-flag support.

HDTV tech trends: 1080p goes mainstream, HDMI 1.3 reaches market.

ATSC honors: Mark Eyer, Bernard Lechner Award recipient.

Two flat-panel TV manufacturers may face FCC fines over violations of the digital tuner mandate. The makers of of Maxent and Olevia televisions broke rules requiring over-the-air digital reception capabilities in TV sets for sale in the U.S., according to the commission.

The FCC notified Regent USA (maker of Maxent) and Syntax-Brillian (maker of Olevia) of proposed fines totaling $63,650 and $2,899,575, respectively.

“I am appalled at the actions of Regent U.S.A. and Syntax-Brillian for their willful and repeated violations of Commission rules,” FCC Commissioner Jonathan S. Adelstein said in a statement. “The American people deserve better than to be sold non-DTV-compliant television receivers.”

The tuner rule is supposed to ease the transition to digital broadcasts and, in the process, protect consumers. But it isn’t clear what recourse is available to consumers who purchased TV sets that did not comply with the federal regulation.

The FCC needs to do more to help the public select televisions that will meet their needs following the cutoff of analog broadcasts on February 17, 2009, a point Adelstein emphasized in his statement last week:

…while the Commission will punish violators after unsuspecting customers have been harmed, our enforcement tools are a poor and inadequate substitute for proactive consumer outreach and education. We have not done nearly enough to inform the public of the differences between, for example, HD-ready, DTV, or even HD-TV. We owe it to our citizens, those that will be harmed by buying a television set that cannot receive digital signals, to help them make the right purchases. If more citizens had known the differences, and had been aware that the televisions in question did not have the capabilities they needed, perhaps they would not have purchased the sets. We simply cannot fix the problem on the back end. We need to address the problem head on. Education and outreach are key to solving this problem.

Here are the affected models from Regent (Maxent), according to the FCC:

…Regent admits that it imported and shipped interstate four models of large screen television receivers that do not include DTV tuners after July 1, 2005. Specifically, Regent imported and shipped interstate the following four models of large screen television receivers: Model LME-37X8, described as a 37″ HD-ready liquid crystal display (”LCD”) screen television; Model PME-42X10, described as a 42″ HDTV-ready plasma screen television; Model LME-42X8, described as a 42″ HD-ready LCD screen television; and Model PME-50X10, described as a 50″ HDTV-ready plasma screen television. Regent admits that on five dates between March 24, 2006 and July 11, 2006, it imported a total of 891 non-DTV-compliant large screen televisions. Regent also admits that it made 368 interstate shipments comprising a total of 1,288 non-DTV-compliant large screen televisions between February 6, 2006 and October 3, 2006.

Syntax-Brillian (Olevia) models:

Syntax-Brillian admits that it imported and shipped interstate the following seven models of mid-size screen television receivers that do not include DTV tuners after March 1, 2006: Model LT26HVE, Model LT26HVX, Model LT27HVX, Model LT30HV, Model LT32HV, Model LT32HVE, and Model LT32HVM. Specifically, Syntax-Brillian admits that on 88 dates between March 3, 2006 and October 31, 2006, it imported a total of 28,430 units of non-DTV-compliant mid-size screen television receivers. Syntax-Brillian further admits that, between March 1, 2006 and October 31, 2006, it made 1,765 interstate shipments comprising a total of 43,892 non-DTV-compliant mid-size screen televisions. In addition, Syntax-Brillian acknowledges that it shipped interstate one model of a large-size screen television receiver that does not include a DTV tuner after July 1, 2005: Model LT37HVE. Syntax-Brillian indicates that, between December 9, 2005 and October 16, 2006, it made eight interstate shipments comprising a total of 165 non-DTV compliant large-size screen television receivers. Thus, in all, Syntax-Brillian made a total of 1,861 importations or interstate shipments comprising 72,487 non-DTV-compliant mid-size and large-size screen television receivers after the applicable deadlines.

Regent’s response to the FCC inquiry defended its actions, noting its status as a small company, according to the commission. The affected receivers, part of its commercial/educational line of products, are more likely to be used as monitors than televisions, the company added. Also, Regent “maintains that it complied at all times with the DTV tuner requirement for wholesale products sold to retailers.”

Syntax-Brillian’s response noted its position as a small business and product of a recent merger, according to the FCC. The company also cited an FCC decision that advanced the deadline for midsized TVs to include ATSC tuners from July 1, 2006, to March 1, 2006, putting design and manufacturing schedules under pressure following its merger. Syntax-Brillian stated that it clearly labeled the noncompliant receivers as “HD Ready,” indicating the absence of an integrated DTV tuner, according to the FCC.

From our FAQ section:
• Integrated DTVs vs. DTV monitors
• Does your set have a digital tuner?

Earlier:
• FCC mandates analog TV warning labels
• On digital tuner rule, FCC makes small exception
• Monitoring the digital tuner rule

• Links: TWICE; FCC: [Regent] [Syntax-Brillian]

These posts are now available by email. So why miss a single moment of the digital TV transition?

• Digital TV Facts free email subscriptions

• BBC proposes channel for HD broadcasts

• Motorola’s ROKR mobile TV phone for MediaFLO

• Networked TV: Hewlett-Packard proclaims ‘HDTV 2.0′

• ‘White space’ broadband device goes to FCC for testing