[opendtv] Re: Supply chain agrees switchover measures
- From: Craig Birkmaier <craig@xxxxxxxxx>
- To: opendtv@xxxxxxxxxxxxx
- Date: Tue, 18 Sep 2007 07:38:14 -0400
At 4:32 PM -0400 9/14/07, Manfredi, Albert E wrote:
So my question is, why is it that in the UK these measures, virtually
identical to those mandated by the FCC over here, can be agreed upon
voluntarily by the CE vendors and retailers, whereas here vendors and
retailers have to be dragged kicking and screaming? Simple question.
Ignoring John's ramblings on U.S. anti-trust laws...
There is little difference in terms of the rules under which the CE
manufacturers/retailers are working in the U.K and in the U.S.
The difference is primarily related to the actions of the
broadcasters in each country respectively. In the U.K the
broadcasters are actively competing with cable and DBS, creating a
very real market opportunity for the CE industry, which is responding
with very real products.
In the U.S. the CE industry largely controlled the process to develop
the ATSC standard. They have been able to do this in two ways:
1. The Advisory Committee process allows competitors to collaborate
on the development of a standard. Virtually all CE manufacturers were
involved in the development of the U.S. DTV standard - to be
completely fair, the broadcasters allowed and encouraged the CE
companies to bear the majority of the expense in developing the ATSC
standard - in large part because this was a delaying action for the
broadcasters, many of which never believed that they would be forced
to move to the new digital standard.
2, The ATSC is allowed to operate as a standards group with members
collaborating to develop the standard and extensions. The ATSC is
controlled by its CE industry members, who have more than enough
votes to control the standards process, again with broadcasters in
the minority position.
So the difference in outcomes in the U.K. and the U.S. cannot be
blamed on the legal system or regulators. The difference is market
based. In the U.S. the broadcasters could care less about competition
- they depend on competitors to deliver their content and
increasingly on being paid by these competitors for the privilege.
There has been NO INCENTIVE for the CE industry to promote the FTA
DTV standard; there has been no promotion of the service by
broadcasters and there is little reason for the CE industry to do any
more than has been required by the FCC.
On the other hand, CE manufacturers and to a much greater extent, CE
retailers have been partners in the development of the U.S. DBS
industry. They have provided STBs, and they are provided financial
incentives by the DBS industry to promote the DBS services. Cable has
been dragging their heels with respect to opening up the markets for
digital STBs, but they have been cooperating with retailers,
providing incentives to get people to hook up to cable.
Meanwhile the U.S. broadcasters do nothing, wither to deliver a
competitive service, or to wortk with the CE industry to promote the
DTV transition.
Regards
Craig
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