Analog Shutdown - Early Retirement or Killing Me Softly

Analog Shutdown - Early Analog Shutdown - Early Retirement or Killing Me SoftlyRetirement or Killing Me Softly

Analog Death or…Digital Bleeding

Edge

Analog Death orAnalog Death or Digital Digital Bleeding EdgeBleeding Edge

Switching Off Analog Shouldn’t Have To Be PainfulSwitching Off Analog Shouldn’t Have To Be Painful


SITUATION BEFORE DIGITAL BROADCASTINGSITUATION BEFORE DIGITAL BROADCASTING Analog channel 60Analog channel 60 Digital assignment of channel 59Digital assignment of channel 59 Broadcasting from San Bruno MountainBroadcasting from San Bruno Mountain


TWO CHANNELS OUTSIDE THE CORETWO CHANNELS OUTSIDE THE CORE Searched for channels in crowded spectrumSearched for channels in crowded spectrum Successful petition for channel D43Successful petition for channel D43 D43 required transmission from Sutro Tower (co-locate D43 required transmission from Sutro Tower (co-locate

with existing channel 44) putting KCSM at the primary with existing channel 44) putting KCSM at the primary transmission site for the San Francisco Bay Areatransmission site for the San Francisco Bay Area

Facility securedFacility secured Digital transmission begins March 2004Digital transmission begins March 2004


DECISION TO SHUTDOWN ANALOGDECISION TO SHUTDOWN ANALOG Cost of operationsCost of operations Loss of analog site lease to NBC affiliateLoss of analog site lease to NBC affiliate Unreliable analog transmitterUnreliable analog transmitter Lack of other transmission facilitiesLack of other transmission facilities Cable penetration >80%- Satellite 9%Cable penetration >80%- Satellite 9%


TASKS TO DO BEFORE MAKING THE DECISIONTASKS TO DO BEFORE MAKING THE DECISION

Analog Death orAnalog Death or Digital Bleeding Digital Bleeding EdgeEdge

Expected & Unexpected Relationships


PTFP REQUIREMENTSPTFP REQUIREMENTS 2 years Federal interest remaining in equipment 2 years Federal interest remaining in equipment

purchased through grantpurchased through grant PTFP allowed that interest to be transferred PTFP allowed that interest to be transferred


NEGOTIATIONS WITH CABLE CARRIERSNEGOTIATIONS WITH CABLE CARRIERS In addition to the major carrier and twoIn addition to the major carrier and two

overbuilders, there were numerous smalleroverbuilders, there were numerous smaller

companiescompanies KCSM provided receivers to all that we could identifyKCSM provided receivers to all that we could identify


NEGOTIATIONS WITH DBSNEGOTIATIONS WITH DBS DirecTV very cooperativeDirecTV very cooperative EchoStar has been more difficultEchoStar has been more difficult


PETITION TO FCCPETITION TO FCC Counsel to KCSM recommended first Counsel to KCSM recommended first

requesting an “STA” to go darkrequesting an “STA” to go dark


CONTENTS OF PETITIONCONTENTS OF PETITION Lost our leaseLost our lease Looking for alternate siteLooking for alternate site Agreements had been made with cable and DBS for Agreements had been made with cable and DBS for

digital carriagedigital carriage Telecourse students would be provided loaner STB Telecourse students would be provided loaner STB

and tapes of programs no longer accessibleand tapes of programs no longer accessible


ANNOUNCING THE DECISIONANNOUNCING THE DECISION On-air messagesOn-air messages Messages in our monthly guideMessages in our monthly guide Newspaper articles (press coverage was limited)Newspaper articles (press coverage was limited) No advertising budgetNo advertising budget Increased information on websiteIncreased information on website




SWITCHING OFF THE ANALOG CHANNELSWITCHING OFF THE ANALOG CHANNEL We ceased broadcasting scheduled programming We ceased broadcasting scheduled programming

on May 15th, 2004on May 15th, 2004 Turned off transmitter on May 24, 2004Turned off transmitter on May 24, 2004 Shut down prior to lease expiration to allow time for Shut down prior to lease expiration to allow time for

site clean upsite clean up


WHAT WE LEARNED - INITIALLYWHAT WE LEARNED - INITIALLY Non-stop calls & written correspondence voicing concern Non-stop calls & written correspondence voicing concern

over losing KCSMover losing KCSM Engineering Dept. trained staff on how to answer callsEngineering Dept. trained staff on how to answer calls Call summaryCall summary

• 10% would not be consoled10% would not be consoled

• 45% interested in obtaining the equipment necessary45% interested in obtaining the equipment necessary

• 45% would not get cable / satellite or equipment45% would not get cable / satellite or equipment


WHAT HAPPENED NEXTWHAT HAPPENED NEXT Viewers attempted to buy equipment Viewers attempted to buy equipment Retailers did not have enough stockRetailers did not have enough stock ……and worse, frequently did not know what a “set-top” and worse, frequently did not know what a “set-top”

box was or if they had them in the storebox was or if they had them in the store Viewers who succeed in buying receivers frequently Viewers who succeed in buying receivers frequently

needed installation advice from KCSM Engineering needed installation advice from KCSM Engineering staffstaff


SATELLITE ISSUESSATELLITE ISSUES EchoStar required second antennaEchoStar required second antenna DirecTV had a problem with early versions of their DirecTV had a problem with early versions of their

receivers. KCSM audio disappeared on channel 704receivers. KCSM audio disappeared on channel 704 Continued confusion over KCSM channel Continued confusion over KCSM channel

assignments on cable and satellite systemsassignments on cable and satellite systems


TO DATE RESULTSTO DATE RESULTS 38% viewership loss after analog shutdown38% viewership loss after analog shutdown 30+% increase in pledge income with less than 5% 30+% increase in pledge income with less than 5%

increase in pledge minutesincrease in pledge minutes YTD ’05 Membership Income already exceedsYTD ’05 Membership Income already exceeds

entire FY ‘04entire FY ‘04


ALWAYS MORE TO DOALWAYS MORE TO DO Listing services Listing services PSIPPSIP Set top boxesSet top boxes Newspapers- TV listingsNewspapers- TV listings Field continuing viewer callsField continuing viewer calls


WHERE WE ARE NOWWHERE WE ARE NOW Nearing the end of second 6 month STANearing the end of second 6 month STA Filing Petition to Terminate LicenseFiling Petition to Terminate License FCC could require analog restartFCC could require analog restart


CONTENTS OF FCC PETITIONCONTENTS OF FCC PETITION Community impact from analog terminationCommunity impact from analog termination Quantity of OTA stations in grade B contourQuantity of OTA stations in grade B contour Number of analog OTA viewers losing accessNumber of analog OTA viewers losing access Steps taken to mitigate OTA viewership lossSteps taken to mitigate OTA viewership loss Cable & DBS agreementsCable & DBS agreements Economic impact of new construction for NCEEconomic impact of new construction for NCE

BAY AREA BROADCASTINGBAY AREA BROADCASTING

28 Commercial Stations28 Commercial Stations

6 Non-Commercial Stations6 Non-Commercial Stations

BAY AREA BROADCASTINGBAY AREA BROADCASTING

28 Commercial Stations28 Commercial Stations

6 Non-Commercial Stations6 Non-Commercial Stations


Thank YouThank You

Michele MullerMichele Muller

Director of EngineeringDirector of Engineering

KCSM TV & FMKCSM TV & FM

San Mateo, CA San Mateo, CA

[email protected]@kcsm.net

Documents

Analog Shutdown - Early Retirement or Killing Me Softly