BROADCASTERS PLAN DTV MARKETING EFFORT
CARLSBAD, Cal. -- Following end of potentially contentious fight over DTV standards (CD Jan 17 p3), NAB TV board approved financing to start public campaign to “educate consumers on the benefits of digital TV.” To get under way in spring, planning will begin Feb. 6 at joint meeting with co-sponsor MSTV, NAB announced at close of 4 days of board meetings here Wed. Cost of effort wasn’t disclosed, but broadcaster said “we've already spent hundreds of thousands” on engineering studies to determine that 8- VSB standard should be favored over COFDM.
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To date, public reception, as indicated by purchase of DTV receivers, has been “very nearly nonexistent, and there’s a prime need to jump-start the whole thing now that we have a for-sure standard,” broadcaster said. Broadcasters blame FCC’s lack of action on DTV must-carry and other issues for lack of public acceptance of DTV. NAB’s DTV task force, headed by Michael McCarthy of Belo, also recommended “accelerating research and development for purposes of advancing 8-VSB performance.”
NAB Chmn. James Yager of Benedek Bcstg. said NAB’s “financial house is in order” with record revenue in fiscal 2000 (ending March 1). Assn. is expecting another record year beginning April 1 of $66 million in revenue (CD Jan 3 p4) -- leading group to declare 2nd straight 3-month holiday for member dues payments. Radio membership is up 300 stations in last 12 months and now stands at “its highest level ever,” said Radio Exec. Vp John David, with TV membership up 29 stations since June. TV board once again visited long-time contentious issue of FCC’s 35% TV station ownership cap and on motion by William Sullivan, WSBT-TV South Bend, voted “overwhelmingly” to reaffirm its support of that cap.
James May, exec. vp-govt. relations, told board NAB “achieved virtually all off its legislative goals in 2000” -- citing LPFM, satellite TV loan guarantees, spectrum integrity legislation and preventing any content legislation or analog spectrum tax proposals. Industry issues coming up in new Congress, he said, include election reform, new pushes for content regulation and public financing of campaigns, among others.
NAB’s current 8-year-old database must be replaced, Exec. Vp- Operations Jack Knebel told board. New system is “critical” for NAB to provide services to its membership, he said, with Accenture retained to help find vendor to provide new system. Under task force headed by Jerry Fritz of Allbritton Communications, NAB also is developing NAB-X.com, with help of AnswerThink, to provide “year-round, virtual trade show” Web page. Prototype will be demonstrated at NAB convention in April. TV Vice Chmn. Paul Karpowicz, Bylaws Committee chmn., said membership overwhelmingly approved bylaws changes recognizing board members’ “fiduciary responsibilities” to NAB -- designed, in part, to give Assn. means to punish board members (including removal) for leaking information to reporters (CD Dec 28 p2).
NABers assembled in Carlsbad were overjoyed by court decision Tues. throwing out -- for 2nd time -- FCC EEO rules (CD Jan 17 p1). Despite removal of license revocation threat, NAB Pres. Edward Fritts urged broadcasters to intensify their efforts to create opportunities for minorities and said Assn. “strongly supports” reinstitution of tax credit for sale of stations to minorities. Dwight Ellis, NAB vp-human relations development, said Assn. made presentations in last 12 months at 9 minority media conferences. Board adopted resolution praising various state associations for their efforts to help minorities, saying: “We remain committed to these initiatives and urge all broadcasters to continue and to add to their efforts.”
NAB Senior Vp-Science & Technology Lynn Claudy reported on in-band, on-channel (IBOC) tests of digital radio. Assn. soon will start field-testing IBOC technology promoted by newly formed iBiquity Digital Corp. Tests will be conducted at 8 radio stations, he said, with NAB to consider establishing marketing task force to study terrestrial radio and its impact on marketplace. Exec. Vp Henry Baumann said recent ruling of U.S. Copyright Office that simultaneous streaming of broadcast signals on Internet was subject to performance fees was “directly contrary to congressional content.” NAB has filed lawsuit against Recording Industry Assn. of America on issue, and board discussed further options, without taking action. Gen. Counsel Jack Goodman said there were “many problems” with FCC rulemaking to redefine radio markets (as advocated by Comr. Tristani) and radio board came out in opposition to proposal. At 2001 radio show in New Orleans, NAB plans to add “streaming” conference -- noting that many exhibitors from Sept. show were involved in audio streaming.