Voluntary Incentive Auctions--Say Goodbye to FOTA TV

[Carmine5]

As we know, the FCC just voted on the NPRM authorizing incentive auctions and station repacking.

http://transition.fcc.gov/Daily_Releases/Daily_Business/2012/db0928/DOC-316527A1.pdf

Should the FCC have its way with broadcast television the future would be grim. In addition to channel sharing, going dark or moving to VHF, the FCC is also asking broadcasters to possibly accept interference.

For broadcasters opting to share a channel they will be giving up capabilities that require a full channel’s bandwidth. The one-time cash infusion will come at the expense of giving up future options to provide mobile, ultra high definition and multicast programming.

So far, according to NAB president Gordon Smith, there have been no reports of large market television operators looking to exit the business – most are having great years and are looking forward to great years in the future.

http://www.tvtechnology.com/article/fcc-unanimously-approves-tv-band-incentive-auction-nprm/215700

http://rbr.com/nabs-gordon-smith-no...rdon-smith-no-stampede-to-give-up-tv-spectrum

 

[fybush]

We've got a pretty good discussion of the topic going on over at the New England TV board, hitting on many of these questions:

http://radiodiscussions.com/smf/index.php?topic=220223.20

 

[FreddyE1977]

After many years of sitting atop the heap, the NAB seems stunned to find that someone has now come along
with even more money with which to bribe Congressmen.

The end result of all this will be another Obamaphone program to provide cable to low-income households.
(which the cable and satellite companies will love, as it answers the age old question "how do I sell my
product to people who don't have any money?")

 

[Carmine5]

The FCC has finally released the NPRM--all 205 pages of it:

http://www.fcc.gov/document/broadcast-television-spectrum-incentive-auction-nprm

Should make for some scary bedtime reading.

 

[Bongwater]

One station has already announced plans to turn in it's frequency, though WHEN is the question. Bellingham, WA's KVOS-TV

 

[landtuna]

From a full-power network-associated station perspective what does this mean?

Approximately 15% of the U.S. population still receives their TV over the air. Does it make sense for a major station owner to continue OTA operations if they can auction off their frequencies for a substantial sum in order to continue reaching only 15% of their market?

What I see happening is the major stations will sell off their frequencies and go cable/sat only. What we will have left are the flotsam operations that cannot get must-carry status on their local cable operations and who have not historically been able to get on sat.

 

[Bongwater]

From a full-power network-associated station perspective what does this mean?

Approximately 15% of the U.S. population still receives their TV over the air. Does it make sense for a major station owner to continue OTA operations if they can auction off their frequencies for a substantial sum in order to continue reaching only 15% of their market?

What I see happening is the major stations will sell off their frequencies and go cable/sat only. What we will have left are the flotsam operations that cannot get must-carry status on their local cable operations and who have not historically been able to get on sat.

I don't see this happening. Because most major TV stations are trying to find a way to broadcast free OTA on mobile devices (namely news, but there may be network TV entertainment offerings.) And they'll be needing spectrum for that.

Smaller independents like KVOS may go by the wayside, But most major stations may cling to their frequencies.

 

[landtuna]

I don't see this happening. Because most major TV stations are trying to find a way to broadcast free OTA on mobile devices (namely news, but there may be network TV entertainment offerings.) And they'll be needing spectrum for that.

There is an overabundance of "news" out there already. What they are trying to sell is more commercial spots. Let's be honest.

Obviously you can't get video to mobile receivers in use in vehicles so you are pretty limited to bus, subway and cab riders in the big cities. That isn't a huge population (but is a captive population). I can't see anyone voluntarily watching any kind of program on a 4" screen with a speaker the size of a pimple. Tablets aren't much better.

 

[Bongwater]

I don't see this happening. Because most major TV stations are trying to find a way to broadcast free OTA on mobile devices (namely news, but there may be network TV entertainment offerings.) And they'll be needing spectrum for that.

I can't see anyone voluntarily watching any kind of program on a 4" screen with a speaker the size of a pimple. Tablets aren't much better.

But they do.

 

[KeithE4]

I can't see anyone voluntarily watching any kind of program on a 4" screen with a speaker the size of a pimple. Tablets aren't much better.

Sometimes that's the only way to watch something if you're not home. I watched quite a few baseball games and part of the NCAA basketball tournament on my smartphone because I would have missed them otherwise. The experience isn't great and video is a battery killer, but it's better than nothing.

 

[landtuna]

... but it's better than nothing.

I think that is the key. But the question is.....are there enough "better than nothings" to make a demo?

 

[Bongwater]

... but it's better than nothing.

I think that is the key. But the question is.....are there enough "better than nothings" to make a demo?

I think just the fact it's there alone is a selling point. Not sure about the future, but for now it's "the thing" to have.....It's what you put into it that's going to make it sell.......

 

[Carmine5]

From a full-power network-associated station perspective what does this mean?

Approximately 15% of the U.S. population still receives their TV over the air. Does it make sense for a major station owner to continue OTA operations if they can auction off their frequencies for a substantial sum in order to continue reaching only 15% of their market?

What I see happening is the major stations will sell off their frequencies and go cable/sat only. What we will have left are the flotsam operations that cannot get must-carry status on their local cable operations and who have not historically been able to get on sat.

Actually the figure is up to about 18% of US households who rely strictly on OTA for television viewing and the number is growing. The problem is that FCC is really only interested in the top 30-35 markets. So a full power or class A station outside of those markets may not be able to sell even if they wanted to. That doesn't mean they won't get repacked but there are enough open channels to accomplish this without the government paying for anything.

As for LPTV (the flotsam I think you're referring to), the FCC is actually considering giving them must carry status on an MVPD after the repacking.

 

[Carmine5]

I don't see this happening. Because most major TV stations are trying to find a way to broadcast free OTA on mobile devices (namely news, but there may be network TV entertainment offerings.) And they'll be needing spectrum for that.

I can't see anyone voluntarily watching any kind of program on a 4" screen with a speaker the size of a pimple. Tablets aren't much better.

And yet millions around the world were doing just that to watch the FIFA world cup games--watching it on their phones. Just like AM radio--it's all a matter of content.

 

[landtuna]

I don't see this happening. Because most major TV stations are trying to find a way to broadcast free OTA on mobile devices (namely news, but there may be network TV entertainment offerings.) And they'll be needing spectrum for that.

I can't see anyone voluntarily watching any kind of program on a 4" screen with a speaker the size of a pimple. Tablets aren't much better.

And yet millions around the world were doing just that to watch the FIFA world cup games--watching it on their phones. Just like AM radio--it's all a matter of content.

The key word is.....voluntarily. You are talking about desperate fans watching the world's most popular sport at its highest level - it would be like the Super Bowl in the USA. That is a poor example to use for everyday viewing.

 

[Bongwater]

I don't see this happening. Because most major TV stations are trying to find a way to broadcast free OTA on mobile devices (namely news, but there may be network TV entertainment offerings.) And they'll be needing spectrum for that.

I can't see anyone voluntarily watching any kind of program on a 4" screen with a speaker the size of a pimple. Tablets aren't much better.

And yet millions around the world were doing just that to watch the FIFA world cup games--watching it on their phones. Just like AM radio--it's all a matter of content.

The key word is.....voluntarily. You are talking about desperate fans watching the world's most popular sport at its highest level - it would be like the Super Bowl in the USA. That is a poor example to use for everyday viewing.

But we're also talking about PORTABLE devices. Of course nobody wants to use it for everyday viewing. But it has it's place. We're a pretty mobile society and we're not always near a 50" flat screen TV. These gadgets bridge that gap. Crudely, I admit. But they do in a pinch. And they're the right size.

And as far as it being a profitable demo, there are always people on the move. I would say 50% on the go or away from home for the 50% at home watching TV traditionally. I think OTA TV always exist in one form or the other for these portable devices.

 

[Carmine5]

I don't see this happening. Because most major TV stations are trying to find a way to broadcast free OTA on mobile devices (namely news, but there may be network TV entertainment offerings.) And they'll be needing spectrum for that.

I can't see anyone voluntarily watching any kind of program on a 4" screen with a speaker the size of a pimple. Tablets aren't much better.

And yet millions around the world were doing just that to watch the FIFA world cup games--watching it on their phones. Just like AM radio--it's all a matter of content.

The key word is.....voluntarily. You are talking about desperate fans watching the world's most popular sport at its highest level - it would be like the Super Bowl in the USA. That is a poor example to use for everyday viewing.

Actually, it's a perfect example of where broadcast television is heading; TV everywhere. And researchers are finding that convenience and personal entertainment mean more to consumers then watching on a large, at-home viewing screen.

What is bizarre is your use of the word "voluntarily", as if someone were putting a gun to viewer's head and forcing them to watch a program on a small screen.

 

[landtuna]

Actually, it's a perfect example of where broadcast television is heading; TV everywhere. And researchers are finding that convenience and personal entertainment mean more to consumers then watching on a large, at-home viewing screen.

I find that very difficult to believe. Most of my watching is done on my computer monitor (24" HDTV) although there are two other larger HDTV's in the house. If I were watching a throw-away program like the news where audio is more important than video then a mobile device would be fine. If I want to watch a bowl game then no, I would watch on a mobile device only if I had no other options - and that is what I meant by "voluntarily".

 

[Duncan Park]

OTA television is dead to me. Unless you live in a metropolitan area there is no over the air television without a hefty outdoor antenna. Even then, the best I would be able to do is three or four Nashville broadcasters and their subs. Not really worth my investing in an outdoor antenna set and accoutrements for what, ten channels max? Without an outdoor antenna... Zippo. I'm only 60 miles from the nearest metro in any direction.

 

[Tom Wells]

Actually, it's a perfect example of where broadcast television is heading; TV everywhere. And researchers are finding that convenience and personal entertainment mean more to consumers then watching on a large, at-home viewing screen.

I find that very difficult to believe. Most of my watching is done on my computer monitor (24" HDTV) although there are two other larger HDTV's in the house. If I were watching a throw-away program like the news where audio is more important than video then a mobile device would be fine. If I want to watch a bowl game then no, I would watch on a mobile device only if I had no other options - and that is what I meant by "voluntarily".

I recall being on Amtrak going from Los Angeles to Salt Lake City in the early 90's. It was superbowl sunday and we were
in the middle of nowhere. I was in the lounge car with a tiny 7 band AM-FM shortwave listening to dx.

When folks noticed I had a radio, they bought me drinks to partly take over my listening choices so they could keep informed of the game
status. They were really impressed that someone had a way to find out what was going on, as their cellphones did NOTHING
in that remote part of Nevada.