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Advertisers in the US are growing more concerned about the planned digital television (DTV conversion in the United States on 17 February 2009. The date is carefully timed - it’s after the Super Bowl, but before the NCAA basketball tournaments.

Unfortunately for broadcasters and advertisers, the conversion comes in the middle of a sweeps month. The Nielsen Ratings service, which calculates television viewership a broad-based sample of American households, has released some surprising figures. Senior citizens seem more prepared for DTV than previously believed. Households with two or more television sets are more likely to have at least one set that is not ready for DTV, despite an endless barrage of television announcements about the conversion plan. Hispanics and African-Americans and younger households are more likely to lose their television service:

Using its ratings panel, Nielsen found that 9.4 percent of households, or roughly 10 million homes, were “completely unready” for the switch as of April 30, meaning that all their television sets would go dark next year. An additional 12.6 percent of households were partly unready.

See this New York Times article for more information.

Related pages on billso.com:

• Digital television

Digital television or DTV is coming to the United States on 17 February 2009, when all television stations must shut down their analog broadcasts and convert to a digital signal.

The FCC has a web site about the transition at https://www.dtv2009.gov

Related posts on billso.com

• 31 May 2008: Advertisers worried about digital television conversion
• 16 May 2008: Want to test your digital television in Hawaii?
• 25 March 2008: Digital TV is coming
• 18 January 2008: Digital TV and business models
• 12 November 2007: I want a better television - but it’s not ready yet
• 5 July 2004: San Diego Padres promote HDTV

From the Associated Press via Sports Illustrated and Forbes: National Football League commissioner Roger Goddell has announced that the league will enact and enforce tougher regulations regarding technology and spying for the 2008 season. The NFL has allowed radios for offensive play-calling since 1994, but mobile computer and video technology have advanced far faster than the league’s regulations ever anticipated.

The three-time NFL champion New England Patriots have been the subject of intense scrutiny after a staff member was caught videotaping defensive coaching signals during the team’s 2007 season opener. The NFL and Senator Arlen Specter (R-PA) are each investigating multiple allegations that the Patriots had been videotaping opposing teams since coach Bill Belichick was hired in 2000.

Former Patriots employee Matt Walsh recently sent 8 video tapes of Patriots opponents to the NFL office for analysis. According to Mike Fish of ESPN, at least one tape included offensive coaches from another team. Previously, it was believed that the Patriots only taped defensive coaches.

What about the FCC?

Most of the discussions I have read about the so-called Spygate scandal have missed an important legal point. The NFL depends upon large multi-billion dollar contracts from US television networks for a significant portion of the league’s revenue and market power. Every regular-season and post-season game is televised. The NFL also owns and operates its own television network, which carries 8 regular season games, many pre-season games, and a 24/7 stream of interviews, documentaries, replays and other NFL content. See this article from CBS Sports for more details.

The Federal Communications Commission (FCC) has specific regulations on how sports may be broadcast in the United States. One key rule is that live televised sporting events must be “free of artifice”. In other words, games cannot be rigged or fixed in any way.

This is one reason that professional wrestling broadcasts use a great deal of taped and edited content. Pro wrestling is marketed as , not a sporting event.

“When we met with [the] commissioner, the discussion was how we proceed in an era when technology is expanding exponentially,” Indianapolis Colts president Bill Polian said. “The question is how do we keep on top of that. This is far less about what happened in the past and how we deal with it in the future.”

Google is teaming up with Clearwire, Sprint, Time Warner Cable, Comcast and Intel to build a national WiMAX network. See the New York Times, the Washington Post, and Branding Post for more details.

The new joint venture will retain the Clearwire brand name and Clearwire’s existing consumer WiMAX business. Sprint contributes its network infrastructure and 2.5 gHz frequency allocation. It’s possible this deal will clear the FCC and antitrust regulators, because Google isn’t a major owner in the JV.

Yesterday, a Wall Street journal blog referenced my billso.com article of 18 April 2008 in a discussion about Yahoo and Google’s possible cross-licensing deal. The Clearwire deal is a more direct combination that may help the JV partners lock in consumers, businesses and advertisers.

Too many partners?

I’m reluctant to believe if this large joint venture can actually work. Sprint is the lead partner with a 51 percent stake, and this seems like a desperation move to being acquired outright by Deutsche Telekom or another company.

Pricing and marketing may determine if consumers will pay any attention to this JV. Can Clearwire and Sprint can offer their existing customers some compelling reasons to get some new hardware and try WiMAX? Verizon earns 23 percent of its wireless revenue from data calls on that company’s EVDO and other networks.

Google does need a vast network in the US to support its Android smartphone platform, and the company can’t wait or afford to build it from scratch.

WiMAX would give Google an alternate medium for data service, instead of relying on one telecom carrier as Apple has done with AT&T. Even with 3G service, the iPhone’s data transfer rates will seem slow when the user can’t get WiFi access.

Yes, the iPhone does support WiFi. But I’m sure Clearwire and its partners will market Android phones that support WiFi as well as WiMAX and the sponsoring carrier’s cell phone service, but the battery drain for a typical mobile device user may be a serious problem.

Related posts on billso.com

• 6 May 2008: T-Mobile’s parent may buy Sprint
• 29 April 2008: New iPhone will be subsidized, faster and thinner
• 22 April 2008: Android vs iPhone
• 18 April 2008: Antitrust regulators would fight a Yahoo-Google combination
• 18 March 2008: The 700 mHz auction is over
• 28 February 2008: The Google cable
• 22 February 2008: Customer lock-in
• 20 January 2008: Nokia, Sprint announce layoffs
• 9 December 2007: The mobile office in Honolulu
• 12 September 2007: The Google Phone and the iPhone – both looking for software and spectrum
• 27 August 2007: Wireless providers gird themselves for battle
• 14 June 2007: Clearwire signs WiMax deal with DirecTV, EchoStar
• 5 February 2007: Wireless from the inside out

Yesterday, the Honolulu Advertiser published an article about digital TV conversion. On 17 February 2009, US television stations will stop broadcasting analog television signals. On that date, anyone in the US who uses an antenna to receive their television signal on their analog television will need a digital converter box to receive broadcast signals. Cable and satellite subscribers have or will get converter boxes as part of their service agreement. All televisions manufactured for sale in the US after 1 March 2007 are required to have a digital tuner, so these models don’t need a converter box. The AP has an article with additional details.

I’ve discussed the FCC’s 700 mHz auction on 18 March 2008 and 30 January 2008. When the analog television channels are abandoned, AT&T, Verizon and other companies will use those frequencies for mobile phone and data services.

The US Department of Commerce has a web site with information on the DTV conversion, as does the FCC. Government regulators and consumer activists fear that cable and satellite companies will use digital television to scare up new subscribers. Another AP article states that Hispanics are the ethnic group most likely to lose television service after the conversion, even as the Federal government gives away several million coupons for digital converter boxes. Hawaii has a diverse population, and getting the message out in multiple languages will be challenging. I expect to see more articles in the local papers, especially in early 2009, even though the Advertiser claims that only 5.5% of the state’s television viewers rely on broadcast signals.

Digital TV converter boxes won’t turn an old analog set into a higher-definition TV, of course. These boxes have a digital TV tuner that passes its output to an analog TV on channel 3 or 4, like a video game console would do.

Yahoo reports that broadcasters will be required to run public service advertising, in an effort to notify viewers well before the cutover. The coupon request page uses reCAPTCHA – the same system I use to screen out spam comments on this blog.