1. DBS Update Ann Tucker Director, Digital Cable and DBS Strategy

2. Upcoming DBS issues > New must carry election cycle > DBS HD local channels > Change to DBS waivers

3. New Must Carry Cycle > New cycle start January 1, 2006 > All stations must elect must carry – even if you cannot get a GQS to the LRF!!! > Only applies stations in LTL markets > DBS must carry elections are due October 1, 2005 > No designation letter > More details to follow this summer CONSULT YOUR DC COUNSEL!!!!

4. DBS Providers rolling out HDLTL > DirecTV and Echostar have announced plans to provide local HD signals by end of 2005 > DirecTV – 12 of top 13 markets by 3Q 2005 (33% of US) > HD only > MPEG-4 makes equipment obsolete > Free to LTL subs if they have the equipment New York Los Angeles Chicago Philadelphia Boston San Francisco Dallas-Ft. Worth Washington, DC Atlanta Detroit Houston Tampa-St. Pete

5. Carriage of PBS stations unclear > No FCC HD must carry on satellite > Unclear whether they will carry PBS stations > No national HD channel > PBS continues to talk with both providers to push local HD carriage > Watch for more information

6. DBS waiver process is about to change! NEWS FLASH

7. Current waiver process > 30 days after LTL market launches, the National Feed is removed > No waivers allowed > DirecTV - not technically possible > Echostar/DishNetwork – possible, but not authorized > No waivers needed in non LTL markets

8. They done broke a good thing… > DirecTV’s “One size fits all” waiver process is not working > No flexibility > RVs > Other unforeseen circumstances brought about by ever-changing satellite technology

9. Forces causing the need for change > Use of satellites in low orbits > New class of “unserved” viewers in LTL markets > Congressional & FCC pressure > Smaller numbers of national feed markets > Viewer and station confusion > Need for stations to gain more control

10. Only two possible solutions > Status quo……..or > Normalize the PBS waiver process > PBS Board resolution > Waivers processed at the station level > Control over granting or denying waivers would rest with the station > Same as commercial networks

11. Proposed waiver process Viewer DirecTV Decisionmark Station Waiver Request GRANT DENY Viewer Information

12. What does this mean for stations? > Station would have the obligation to log on periodically to view queued up waivers > Station would determine policies > Control and flexibility would be at the local level

13. WaiverTV service provided by Decisionmark Free for stations Browser-based Provides information for station to make waiver decision Name Address LR map

14. Station Implications > All stations must participate > Resources – number of waivers? > Station must set its own waiver policies > Station coordination in multiple station markets > Some viewers may be unhappy with being told no > Potential opportunity to talk with viewers

15. Tentative Timeline > Summer, 2005 – PBS and Decisionmark hold web conferences > Late summer, 2005 – Stations become familiar with the product and update their technical specifications > Fall – DirecTV switches to individual waivers and stations begin using WaiverTV

16. Look for further information on all these issues in the coming months. Questions on these or other DBS issues? Contact me, Ann Tucker, at (703) 739-5237 or atucker@pbs.org