[opendtv] Re: Supply chain agrees switchover measures

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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