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DTV Transition Converter Box Coupon Program

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Presentation on theme: "DTV Transition Converter Box Coupon Program"— Presentation transcript:

1 DTV Transition Converter Box Coupon Program
January 1, 2008: NTIA will begin taking orders for $40 coupons toward the purchase of certified converter boxes Two coupons available per household Coupons may not be “bundled” – each coupon can be used toward one box Coupons expire after 90 days

2 DTV Transition 1.8” 6.4” 8.5” An LG Electronics digital-to-analog converter box

3 DTV Transition Converter Box Coupon Program
“Open availability” – no means testing Enough to fund 37 million coupons 69 million analog sets are currently used for television $1.5 billion allocation: First $990 million to any household that applies Last $510 million to broadcast-only households Certified boxes must be basic Limited special features on coupon-eligible boxes

4 DTV Transition Converter Box Coupon Program
Applications begin January 1, 2008 By phone (1-888-DTV-2009) Web site ( Mail (applications will be available at U.S. Post Offices)

5 DTV Transition Converter Box Coupon Program Coupon Distribution
Two weeks to process applications With coupons, consumers get list of local retailers, web retailers, and catalogs accepting the coupon Coupons not distributed until retailers are participating in that area 90 day expiration begins upon delivery of coupon

6 DTV Transition Coupon Program Converter Box Certifications
Digital Stream (Two models) LG Electronics (One Zenith model, one for a retailer brand) Retailer Certifications 48 retailers certified – mostly smaller stores No “big box” stores as of 12/03/07

7 DTV Transition Coupon Program Challenges
Consumers can apply for coupons starting January 1, but… Boxes won’t be ready for purchase in many markets Retailers don’t want certification to interfere with holiday selling season Manufacturers won’t begin production until they have orders from retailers NTIA will take orders for coupons, but not deliver coupons until retailers place boxes on shelves Broadcasters won’t push converter boxes until they’re available for purchase to avoid confusion

8 DTV Transition Other Challenges
Best Buy: Won’t sell boxes with coupons until April, 2008 Radio Shack: 7,400 stores but no commitment by date Wal-Mart: Rumor is they’ll participate as of 2/17/08 Converter box availability will vary from market to market

9 DTV Transition Solution: Market by market approach
Spots: NAB will distribute spots promoting coupon option beginning February, 2008 NAB will work with NTIA to notify stations when converter boxes are available at local retailers Stations: Should partner with certified retailers for sponsored DTV action spots

10 DTV Transition Other Challenges: FCC Draft Mandate
FCC Chairman Kevin Martin has proposed a new regulation on broadcasters that mandates the airing of spots. November 2007 – March 31, 2008: 4 PSAs per day, with one PSA and one crawl in each 6-hour daypart PSAs of at least 15 seconds in duration; crawls of at least 60 seconds in length

11 DTV Transition FCC Draft Mandate 8 PSAs and crawls per day
April 1, 2008 – September 30, 2008: 8 PSAs and crawls per day 2 PSAs and crawls in each 6-hour daypart October 1, 2008 – March 31, 2009: 12 PSAs and crawls per day 3 PSAs and crawls in each 6-hour daypart

12 DTV Transition Other FCC Mandate Requirements
Language: Information must be in same language as the majority of programming on the station Promote Gov’t Web sites: Crawls must refer to the Feb. 17 date and refer viewers to the relevant government Web sites for further information Content: PSAs need to inform viewers what they must do to keep receiving television and must include details of the particular station airing the PSA

13 DTV Transition Broadcaster Commitment October 15 Press Conference
Broadcasters $697 million media plan Independent agency, Starcomm Mediavest analysis of Broadcaster plans 1195 television stations committed

14 DTV Transition Broadcasters commit $697m to consumer education at October 15 press conference.

15 DTV Transition 98,000,000,000 impressions through:
DTV Action Spots Crawls, snipes and news tickers 30 minute television program 100 day “Countdown Clock” Grassroots initiatives Figures exclude impressions generated by news coverage Total commitment = $697,455,000

16 DTV Transition “Local broadcasters deserve a heaping of praise for their good work in telling Americans about the coming transition to digital TV.” Reps. Joe Barton (R-TX) and Fred Upton (R-Mich.) in joint statement, October 15, 2007 “I applaud the broadcast industry for putting forth a strong effort to educate Americans about the transition to digital TV through a comprehensive campaign that includes Spanish-language public service announcements.” Rep Hilda Solis (D-Calif.)


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