Broadcasting and managing the transition to digital: A North American perspective

As the CRTC begins wading through submissions from industry groups on a proposed over-the-air digital TV policy, Michael McEwen, secretary-general of the North American Broadcasters Association, told an international audience of broadcasters and regulators about North American broadcasters’ point of view on the transition to digital. McEwen was the keynote speaker at the 2001 International Broadcasting Convention, held Sept. 14-18 in Amsterdam and attended by some 36,000 people. Below is an edited excerpt from his address, delivered on Sept. 15. It gives me great pleasure to be part of the IBC and spend the next half hour or so discussing our business – the business of broadcasting in the "Brave New World" of digital production and distribution…It is probably fair to say that broadcasting in North America is going through some of the most profound changes since the advent of television as we embrace the digital convergent world. What is the digital benefit? More efficient use of spectrum? Better quality? Cheaper in the long run? More flexible and interactive and data services? It is probably all of those, and since it’s still early days maybe more. There is a debate about what is the right business case for the introduction of digital TV; pretty pictures and great sound vs. multiple over-the-air services and data and interactivity. I’m not sure what the killer application will be, but I do know that within 10 years it will be a combination of all these potential applications... I’d like to expand our discussion to talk about some of the principles that are required for a successful transition from analog to digital services. And these services can be either radio or television, the same principles apply. The introduction of new technologies are never easy and each face their own unique challenges. ...Each change in technology was initially costly for the consumer and equally for the service provider. Yet each change was adopted and became the norm in time. I believe this will happen for both radio and television…Let’s briefly review the elements for successful transition from analog to digital: An overall policy framework that encourages the digital transition and eventually sees the end of analog services; Ensure spectrum availability; Fair access to this spectrum for all existing broadcasters (private and public alike) and the encouragement of value-added enhancements to the digital offering; Long-term digital licences to create a stable base for the execution of long-term business plans; and Incentives for digital services, which could include automatic renewal of analog licences; no licence fees; tax breaks; development money for new and innovative digital services and applications; and industry and government participation in marketing, promotion, and education of the benefits of digital radio and television. These principles will apply differently from country to country, but they all apply to a greater or lesser extent no matter where you live. If they are ignored then in themselves they will become barriers to making the transition…Simply put the price of not going digital for conventional over-the-air broadcasters in both radio and television is irrelevance. DTH services are virtually all digital; cable is making the investment, and the Internet is there. Traditional broadcasters have something that many of their competitors don’t: content and brand loyalty. By digitizing and delivering their content digitally they can repurpose and enhance this content for delivery on any platform. Audiences of the future may only be mass audiences with content received from many different platforms. If broadcasters are not positioned to actively participate and compete in this fractured market they will wither to the detriment of their businesses and national cultural expression. I realize that it is difficult for the private sector to look beyond next quarter’s ROI or the public sector to ask for more funding to meet the digital challenge, but they must. A webcast of McEwen’s full address can be found at http://www.ibc.org

Broadcasting and managing the transition to digital: A North American perspective

News | 09/27/2001 4:00 am EDT

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