It was bound to happen. Curtis LeGeyt on Wednesday filed a petition with the FCC seeking rule “modernization” that would directly benefit broadcast television groups. Specifically, the National Association of Broadcasters wants a mandated transition date for TV stations to shift to NEXTGEN TV-powered ATSC 3.0 broadcast signals, ending ATSC 1.0 service for good.
Would MVPDs and voices of the cable television industry protest? Perhaps. If so, the Consumer Technology Association, which had fought against the AM Radio for Every Vehicle Act, has their back.
In a statement, CTA CEO and Vice Chair Gary Shapiro, who has emerged as a foe of broadcasters in recent years, blasted the NAB and its legal team, led by Rick Kaplan, for what the association laments as another mandate.
Shapiro says, “The National Association of Broadcasters is at it again — first pushing to mandate FM chips in phones, then misleading policymakers about AM radio, and now forcing NEXTGEN TV onto every consumer and manufacturer. This is a product that costs more and consumers have not embraced. This will impose large percentage increase in costs at a time when the TV set has proved to be the rare deflationary product.”
If those aren’t fighting words, perhaps broadcast television industry executives may wish to digest the following claims from Shapiro. “The simple fact is fewer than 10% of Americans rely on antennas for TV viewing,” he says, offering an unqualified statement. “These proposed mandates only add unnecessary costs at a time when affordability is top of mind for American families.”
Shapiro did not detail what these “unnecessary costs” are. That said, ATSC 3.0 technology is not backward-compatible. As such, five years from now consumers will need devices capable of receiving these signals. Marketing group Pearl TV had been adamant in stating that the natural replacement period for American consumers, with respect to television sets, alleviated such concerns. Then came COVID-19, which punctured a hole in that philosophy; add-on equipment was created.
Will consumers invest in OEM-based tools that can deliver them ATSC 3.0-powered signals? The bigger question, perhaps, is how MVPDs and virtual MVPDs will deliver those signals — if at all — to consumers.
As the head of the organization behind the annual CES Show each January in Las Vegas opines, that may not happen if the NAB “forces” a change from today’s “voluntary” transition window — a scenario some say former Chairwoman Jessica Rosenworcel adopted after fierce lobbying from cable TV service industry interests.
Shapiro continues, “Rather than innovating, broadcasters are lobbying for regulations to prop up their failing business model. It’s also a stark reminder of why they should not be allowed to consolidate and control markets. If their technology had real value, they wouldn’t need government mandates to sustain it.”
There’s more from Shapiro, who believes broadcasters are pushing for new regulation “to benefit themselves at the expense of competition and consumer choice. What’s next—a mandate for 3D TVs? Instead of working to modernize their industry, NAB is doubling down on outdated policies that stifle innovation.”
That’s why Shapiro says the CTA “remains focused on delivering real value and choice to consumers, not propping up failing business models through regulation.”
His final salvo: taking a stand on the thorny issue of royalty payments provided by radio broadcasting companies to the recording industry. Shapiro makes it very clear that he’s against AM and FM radio on this issue, involving the American Music Fairness Act and the more heavily endorsed non-binding resolution called the Local Radio Freedom Act.
“Broadcasters would be better off paying musicians the royalties they deserve and spend less energy and time trying to restrict technology companies who are better at supporting our economy, innovation, and jobs and reaching consumers on a targeted basis with advertising,” Shapiro says.
Lastly, Shapiro mentions that in 2017 the NAB and CTA jointly opposed an ATSC 3.0/NEXTGEN TV tuner mandate, emphasizing that this any transition should be voluntary, calling it “counterproductive and unnecessary.”
Rather than asking why the NAB has changed its tune, Shapiro has taken his bullhorn and aimed it directly at the broadcasting industry.
A MARKETING PUSH FOR A NEXTGEN TV MANDATE
The NAB’s quest to get a mandate for the shift of broadcast television signals to ATSC 3.0 technology comes with a just-released multimedia marketing effort.
Online, a “Modernize the Rules” microsite has been created by the NAB.
And, there’s a fresh TV 60-second public service spot designed to boost consumer awareness and bring them along for the fight.
It reinforces the NAB’s belief that current ownership rules, which were written in the mid-1970s, “stifle any ability for broadcasters to compete with ‘Big Tech.'”
As NAB President/CEO Curtis LeGeyt sees it, “This campaign underscores the urgent need to modernize outdated FCC ownership regulations that put the future of local TV and radio stations at risk. “In today’s media environment, local broadcasters must have the ability to grow and compete with Big Tech platforms that operate without similar restrictions. As trusted sources of news and information, particularly during emergencies, local stations provide a vital service to their communities. Policymakers must act now to ensure broadcasters can continue serving the public effectively, before it’s too late.”
NAB’s campaign will launch with national advertising directed at policymakers in Washington, D.C.; viewer and listener education; and resources that enable consumer outreach to lawmakers and key stakeholders, including the White House and FCC.
The effort comes ahead of next week’s NAB State Leadership Conference. This sees more than 500 broadcasters visit the Nation’s Capital to advocate for ownership reform and other priorities facing local stations.
