MSTV BOARD SET TO VOTE OCT. 21 ON ESTABLISHING DIGITAL LAB
In decision delayed for more than year by broadcast economy and terrorist attacks, MSTV board is expected to cast favorable vote Oct. 21 on establishment of broadcast technology center, we're told. MSTV Pres. David Donovan, who developed plan along with Victor Tawil, senior vp- engineering, has been busy selling idea to major TV groups and consumer electronic manufacturers. Reaction has been generally “supportive,” including from at least 2 TV networks, Donovan said. We also have found wide support for lab from major TV groups, with some saying they would probably support project but haven’t been asked yet. Only one major group executive expressed disapproval. None have been asked for, or pledged, money.
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Start-up budget is projected at $5 million annually for 3 years. Selling point being used is $30-million annual budget of CableLabs, much of it devoted to research. Only money actually on hand for digital lab, Donovan said, is $1 million a year for 3 years pledged by MSTV. Consumer manufacturers reportedly are awaiting action by broadcasters -- particularly networks and NAB -- before making commitments.
Lab first began receiving serious consideration more than year ago (CD Oct 3/01 p4) -- but was put aside at time because of major drop in TV ad revenue. While tabling idea, MSTV board directed its staff to determine how best to create digital technology center and to explore funding options. Lab could be well along in build-out before now except for economy, according to MSTV Chmn. Gary Chapman of Lin TV -- view shared by others. Today, said Donovan, this is “an idea whose time is now.”
Key to lab’s establishment could be financial participation of NAB, which hasn’t been formally approached and is facing budget difficulties of its own (CD Aug 19 p4). Helping situation is fact half-dozen broadcasters serve on both boards -- including NAB TV Chmn. Michael Fiorile of Dispatch Bcst. Group and Vice Chmn. Andrew Fisher of Cox TV. One NAB board member said NAB has more than $75 million in reserve and “it would hardly miss the money.” Funding also will be sought from major advertisers, rep firms and possibly other trade associations.
Donovan stressed that proposed technical center, for which no location has been chosen, will be designed “to work in concert with, not replace, ATSC [Advanced TV Systems Committee]… ATSC is a critical part of this.” According to selling points used in seeking support for center, among its primary goals will be to: (1) Make over-air TV “a facilities-based competitor of cable” through technology development and improvement. (2) Provide TV system totally “interoperable” with cable and satellite. (3) Help change dynamics of TV industry to become more “pro-active” on major issues. (4) Accelerate standards-setting process. (5) Provide “turn key” technology for new standards. First priority will be to create broadcast set-top box receiver with universal remote control. Plans are to form new corporation, with its own board and advisory committees, to operate as-yet-unnamed technology center.