1. Learn more about the switch to digital programming by visiting the Federal Communication Commissions information Web...

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1. Learn more about the switch to digital programming by visiting the Federal Communication Commission’s information Web site (www.dtv.gov). What is the reason for the switch to digit programming? Write a brief report of what you learned about this transition and how it is going.
2. Television stations and many consumers have already incurred costs related to the switchover mandated by Congress. Is it right for Congress to mandate actions that will require businesses and consumers to pay money for new equipment or services to continue receiving free television over the airways?

The date February 17, 2009 is significant because, as part of the Deficit Reduction Act of 2005, Congress mandated that by then all full-power broadcast stations must have switched to digital signals. This may or may not affect you, but as of mid-2008 an estimated 20 million households would be affected and an estimated 70 million televisions would be at risk of losing their signal. That’s the number of analog sets owned by viewers who use antennas to receive free television signals rather than subscribing to cable, satellite, or another pay-TV service. What options do these consumers have? They can subscribe to cable, satellite, or other pay-television services, which will complete the conversion for customers. Alternatively, they can buy new digital televisions and still receive digital signals with an antenna, as they did with the old analog televisions. Finally, they can purchase a converter box for only $40 to $70, but each set affected will need a converter box. The government is allowing each affected household to apply for two $40 coupons to help defray costs of converter boxes. The bottom line, though, is that affected consumers will have to pay something if they want to keep watching television.

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Principles of Marketing

ISBN: 978-0136079415

13th Edition

Authors: Philip Kotler, Gary Armstrong

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