DBS Update

Ann TuckerDirector, Digital Cable and DBS

Strategy

Upcoming DBS issues

> New must carry election cycle> DBS HD local channels> Change to DBS waivers

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!!!!

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

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

DBS waiver process is about to change!

NEWS FLASH

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

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

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

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

Proposed waiver process

Viewer DirecTV Decisionmark Station

WaiverRequest

GRANT

DENYViewer Information

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

• WaiverTV service provided by Decisionmark • Free for stations• Browser-based

• Provides information for station to make waiver decision• Name• Address• LR map

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

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

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