A DTV Coupon Program Update With the Honorable Meredith A. Baker
Introduced by CEA’s CEO and President Gary Shapiro:
A recent study conducted by CEA and PricewaterhouseCoopers shows that:
“The Consumer Electronics industry directly contributes over one trillion dollars to the U.S. economy.”
Whether it’s social networking sites, new wireless technologies or HDTV, the media is filled with consumer electronics related stories, more than we can count.
The amount of economic activity and the way we’re changing the economy will continue to provide innovation to the world.
Today we welcome a recent inductee to the Academy of DTV Pioneers, the Honorable Meredith A. Baker, the acting administrator for the National Telecommunications and Information Administration (NTIA).
MEREDITH:
There is no doubt that this industry inspires tremendous excitement and enthusiasm around the world. There are few industries that inspire such passion among all walks of life.
The consumer electronics industry is important to the economy and to our global competitiveness.
The availability of valuable tools such as videos and quick start guides are shown on national websites including: digitaltips and antennaweb.
The work and partnership from the beginning has helped this initiative. This industry deserves a huge congratulations.
Secretary Gutierrez has been a very strong supporter of the coupon program and has shown great interest in the transition. He is the only one with previous experience of working with coupons as he used to work for Kellogg foods.
The converter boxes now are sleek, energy efficient, and easy to install. Over-the-air consumers have many choices from converter boxes, purchasing a digital television or subscribing to cable or satellite service.
The historic and unprecedented public-private partnership can be seen in our work together.
“On February 18, 2009, there may be snow; but not on anyone’s television screen.”
Progress to Date
We’re making good progress with another 320 days until the transition. NTIA strives to make our program as consumer friendly as possible. As mandated by Congress we have been accepting consumer applications for coupons since January 1, 2008. We conducted focus groups across the country and found that consumers liked red, they liked the NTIA logo, and they like being able to use a giftcard-type coupon.
As of today, we’ve received more than 9.5 million requests for coupons. We anticipate a steady rate of applications.
NTIA has effectively handled the demand. We’ll be well prepared to handle the anticipated rise in applications at the end of 2008 and early 2009. We are confident that there are sufficient retail outlets carrying the converter boxes throughout the country. Coupon redemption rates are increasing every week. So far, 209,929 of the 3.5 million cards sent have been redeemed, as of April 1.
Consumers are astounded with the crisp picture they are able to receive with their digital converter box.
From the Washington Post’s Fast Forward blog:
“My $40 coupon arrived in the mail, so I used it and $24 in cash to purchase a converter box for my old color television. I’m really amazed by how well it works. I’m picking up 20 over-the-air channels using just the regular TV antenna that came with my old TV. The reception is great, being just as good as cable or satellite. This purchase was the best $24 I’ve ever spent on electronics!”
Hundreds of regional and local retailers are participating, as well as online and phone participation from several outlets. We have 64 types of certified convertor boxes, which have been approved by the FCC. Prices range from $40-$70. Some also have pass-through models for low voltage televisions.
Consumer Education
Our consumer education activities are driving the demand for these coupons. Our agency officials have done well over 100 media interviews, generating over 180 million news impressions on the program.
We have had tremendous response from agencies who work closely with those who are most affected. The Department of Veteran’s Affairs is reaching over 24 million veterans, the Department of Agriculture is working with its food stamps and food nutrition program and HHS is working with its Administration on Aging and Meals on Wheels.
Working with federal agencies and over 130 social organizations to touch vulnerable populations that will be most affected as this transition, including:
- low income
- seniors
- rural
- minorities
- disabled
Users with analog TVs that rely on over-the-air reception have several options to prepare for the transition:
1. Keep their TV and buy a converter box
2. Purchase a new digital TV
3. Subscribe to a cable or satellite service
A survey released by APTS (Association of Public Television Stations) - more than half of over-the air-households - 62 percent of households will buy a converter box or new TV.
An audience member asked Meredith what happens if a consumer returns a converter box that had been purchased using an NTIA coupon. She answered that retailers are set up to return the funds to the U.S. Treasury.
Popularity: 77% [?]
May 30th, 2008 at 10:38 am
There are many converter boxes on the market, with more coming. As with any new technology, their quality, efficiency and price vary considerably. So the selection of a converter box will be an important variable to desired digital reception.
But an even larger variable is the choice of the right digital antenna.
Most TV consumers think of antennas as low-tech devices, but there is more behind some of the newer antenna designs than just bent metal and plastic. Many of the TV antenna designs on the market today, such as the Yagi and rabbit ears have technology roots going back 30 to 50 years or more.
The switch to digital broadcasts however is bringing consumers back to Off-Air reception and the increasing sales are providing the motivation and investments necessary to develop new models and new technology. The fact that most designs on the market now were developed prior to the advent of much of the computer technology, software and algorithms in common use today, left open numerous avenues to improve upon tried and true designs and develop new ones. Additionally, recent regulations and standards are opening new doors for antenna engineers to develop smaller antennas with improved performance and aesthetics.
The correct antenna, installed and aimed properly (considering obstructions) will receive desired local stations it’s aimed at up to 70 miles or more, including multi-cast programming and several in HD, almost completely uncompressed, not necessarily available from cable or satellite. Some viewers may even be able to receive some or all of available out-of-town channels, carrying blacked out sports programs or network broadcasts not available in home towns.
As an added benefit, an OTA antenna provides reception for second sets in homes not wired for whole-house signal distribution.
While cable and satellite program providers will continue to serve the great majority of homes as the primary signal source, missing HD local reception, compression issues, higher costs, billing add-ons, service outages, contact difficulties, in-home service waits and no shows have left many of these subscribers looking to OTA antennas as alternatives and backup.
Depending on the level of desire to receive an excellent digital picture and multiple broadcast signals, considering the investment in TV entertainment already made by many viewers, they should consider up-grading to a new Digital Off-Air Antennas.