[opendtv] Re: Mews: TV are viewers unprepared for switch, coupons are running short

  • From: "Hunold, Ken" <KRH@xxxxxxxxx>
  • To: <opendtv@xxxxxxxxxxxxx>
  • Date: Tue, 17 Jun 2008 14:33:11 -0400

Or maybe they underestimated the mindset of people who wanted their free
"Government Cheese" without knowing what it was for, why/if they needed
it, and didn't bother to notice that the coupons would expire if not
redeemed within 90 days?  No matter how you spin it, "Something for
nothing" is a powerful, if inaccurate motivator.  

And how does the rate of redemption affect the cost of postage or other
aspects of the funding for the program?  

Ken

-----Original Message-----
From: opendtv-bounce@xxxxxxxxxxxxx [mailto:opendtv-bounce@xxxxxxxxxxxxx]
On Behalf Of Craig Birkmaier
Sent: Tuesday, June 17, 2008 8:29 AM
To: OpenDTV Mail List
Subject: [opendtv] Mews: TV are viewers unprepared for switch, coupons
are running short

Dan Grimes noted that his NTIA coupon(s) have expired. The following
rather poorly written article  (from my BE publisher ) tells us that
less than half of the first coupons that were sent out were redeemed. 
About 3 million coupons have been redeemed to date. The program is
funded for approximately 33.5 million coupons, however, it appears that
the NTIA may be running out of money for stamps to send out the
coupons...

I guess nobody considered that the redemption rate would be less than
100%...

Regards
Craig

http://broadcastengineering.com/news/viewers-unprepared-switch-coupons-s
hort-0616/

TV are viewers unprepared for switch, coupons are running short
Jun 16, 2008 9:04 AM           

Rep. John D. Dingell, D-MI, is worried that all the attention being
given to the Wilmington, NC, experiment will make it an unrealistic test
case.

About half of the households that could lose television service after
the transition to digital broadcasting are still unprepared for the
switch, says a new report by the Government Accountability Office (GAO).

The report, released last week, confirms the fear of members of Congress
that millions of constituents could find themselves facing a blank
television screen next Feb. 17.

On top of that, an administration official admitted to House lawmakers
for the first time that more money might be needed to mail out all the
$40 government coupons to subsidize converter boxes that some TV owners
will need for the February 2009 switchover.

Bernadette McGuire-Rivera, associate director of the National
Telecommunications and Information Administration (NTIA), said at a
hearing that it was possible the agency "would have to get more money,
basically to buy more stamps to send out coupons."

Nationwide, an estimated 70 million television sets rely on antennas to
receive over-the-air analog signals. After analog television is turned
off next February, viewers will need a converter box, a digital
television, or a pay-television service.

However, it's not even that simple, because with a converter box - many
of which do not have upgradeable software or can pick up low-power
stations - viewers may still need a tall outdoor antenna with motorized
directionality in certain areas of the country.

"No matter what we do and no matter how many tax dollars we spend, we're
not going to be at a point where there aren't any effects," 
Rep. John Shimkus, R-IL, told the House subcommittee on
telecommunications and the Internet last week.

The GAO report found that about 84 percent of consumers were aware of
the transition but that many do not know what to do. More than half the
1010 people surveyed said they knew about the government program to get
coupons to help pay for converter boxes that allow analog TVs to receive
digital broadcasts, but two-thirds of the people who want a coupon
didn't know how to get one.

More than 3 million converter boxes have been redeemed. However, many
members of the House subcommittee expressed concern that converter box
coupons may expire before consumers can find a box they can afford or
that has the features they want.

The $40 coupons are available through a $1.5 billion program run by the
NTIA. But the coupons expire after 90 days, and consumers are currently
not eligible to reapply.

The GAO report also found that only a few converter boxes currently
available will allow TVs to continue receiving analog signals from
low-powered stations, which typically air local broadcasts and are not
required to make the transition to digital. Most of the boxes are also
not software upgradeable.

About 800,000 coupons - the first batch to be sent to TV viewers -
recently expired. Less than half - 42 percent - were redeemed, according
to the NTIA. The agency said it would decide whether to reissue the
coupons after more detailed redemption rates were available next month.

The NTIA issued a statement after the hearing saying it "has no plans to
ask Congress for any additional funds."

Rep. John D. Dingell, D-MI, chairman of the committee, said he's worried
that all the attention being given to the Wilmington, NC, DTV experiment
will make it an unrealistic test case.
 
 
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