The Erie Digital-HD Dilemma--Chapter 2 What happend with the July 1, 2006 Deadline?

When the FCC finally set standards for digital television broadcasts they didn’t decide on just one but rather a smorgasbord of standards (18) including two for high definition. They allowed the individual broadcasters the luxury of selecting the one they wanted to use. What most consumers don’t understand is that digital doesn’t always mean high definition. In fact, there is no mandate for television stations to broadcast in high definition--just digital. Let me repeat that. Television stations are under no obligation to broadcast in high definition now or in the future. Apparently, the FCC decided to let normal market forces decide what would happen.

However, the FCC was intent to press the industry to move to digital. Even those stations who answered the digital obligation with low power digital stations were given a deadline of July 1, 2006 to go to full power operation on their digital assignment or provide means why they can’t. So what happened a few weeks ago? The FCC was flooded with last minute requests to postpone the fast-cut rule to full power by many stations including Erie’s own for a variety of reasons.

What happened with Erie digita stations? Below are a station by station synopsis of their most recent public filings and my own speculation of what might happen. Most of the filings listed speak to the stations being highly leveraged. That is true for the reasons we outlined in chapter 1. The amounts sound staggering to the average person; however, when spread over the number of properties managed, they don’t really seem unreasonable given the amount of time since the purchase.

WQLN:

With the help and assistance of the Pennsylvania taxpayer, WQLN, as well as all the other public stations in the state, were subsidized not only for digital but for high definition. This made WQLN not only the first station in the area to go digital, but also HD. WQLN remains the only station in the area that is currently HD capable.

From their most recent filing in June WQLN seems prepared to go to full authorized power on their assigned frequency of DT 50. Because of a cross boarder station in Canada, WQLN is waiting for Canadian concurrence before flipping the switch. Below is their last filing with the FCC.

http://svartifoss2.fcc.gov/prod/cdbs/forms/prod/getattachment_exh.cgi?exhibit_id=408041

WICU:
With much bravado, WICU placed in operation their digital channel 52. I say with much bravado because WICU aired a promotional announcement that extolled it as another breakthrough for WICU. However, the promo announcement didn’t tell the consumer that it was channel 52 or that the “spectacular picture quality” was not high definition as some consumers thought. To this day, their station ID doesn’t even show DT 52. As a low power station, DT 52 is the most difficult station to receive. Unless you live within 5 miles of the transmitter with a roof antenna, many will have difficulty receiving it.

So what has been going on with WICU? WICU had filed already with the FCC to move its assigned frequency from DT 52 to DT 12. From a marketing viewpoint this makes a great deal of sense and they are not alone in making such requests. The last time I checked, that request is still pending. But it gave a strong reason to request a waiver from fully constructing full power facilities at DT 52 by July 1st.. After all, it doesn’t make sense nor would the FCC put the burden of duplicating cost---especially when a build-out is around a million. They also sited financial leverage and current credit concerns. Below is their filing:

http://svartifoss2.fcc.gov/prod/cdbs/forms/prod/getattachment_exh.cgi?exhibit_id=414011

As for the when they can construct and if it would be high definition capable we really don’t know for sure. All I can tell you is that I had a conversation with the previous general manager in February of 2004 regarding the Winter Olympics that year in high definition. She was polite to tell me that they were attempting to provide cable with a high definition feed from NBC. She said that she felt confident that by the next Winter Olympics (2008), that WICU would be high definition capable. We will just have to see.

WJET-TV

WJET’s situation is not unlike WICU. NEXSTAR sites that they are also highly leveraged and requires more time. The dollar figure would choke this horse but they are playing in some large markets. In addition, they also requested a change in digital assignment from DT 58 to DT 24. Again this is understandable and for the same reason listed for WICU. From what I understand, that request was granted. They don’t project going to their new assignment at full power until October 2008. That’s right fall of 2008—four months before the analog plug is pulled. Here is their filing:

http://svartifoss2.fcc.gov/prod/cdbs/forms/prod/getattachment_exh.cgi?exhibit_id=415252

Current WJET DT 58 has a fair low power signal and is certainly better than WICU. While WJET didn’t tout their digital with any of the bravado we saw with WICU, they at least include their DT channel on all station ID’s. At least they are getting the idea across.

What about high definition? While they haven’t made a public statement, the odds are fairly good that NEXSTAR will allow WJET to go HD when they fast-cut over to full power digital; early on, NEXSTAR sort of copied Sinclair Broadcasting in their opposition to high definition as not being truly perfected. But times change and even Sinclair is buying in. I think WJET will go HD as they already have converted some of their stations such as WROC in Rochester, New York earlier in the year. (Perhaps the FCC is right and market forces do work.)

WFXP

While WFXP it technically owned by Mission Broadcasting, it is fully managed by WJET’s parent NEXSTAR. You will see similar language and reasons as NEXSTAR. WFXP will remain on their preferred original frequency of DT 22. Like its bigger brother, WFXP is also expected to transition to full power by October 2008. (Why do we have to wait so long?)

WFXP DT 22 over-the-air signal is currently the best of the digitals on the air. They also have followed the WJET routine of using their DT assignment on their station ID’s. (At least that’s a start of educating the public)

The prospect of WFXP seeing American Idol in HD is also expected. The FOX network has done something the other networks haven’t and FOX is providing a little piece of equipment called the splicer to each of its affiliates. The splicer allows local affiliates to pass through the network HD without local override of the quality of the picture. In short, the local stations can’t screw it up.

Least I forget, here is WFXP’s most recent filing for a waiver:

http://svartifoss2.fcc.gov/prod/cdbs/forms/prod/getattachment_exh.cgi?exhibit_id=414906

WSEE

Erie Media-Go-Round already published WSEE’s last filing with the FCC for an extension of its construction permit to build DT 16. If you remember in that filing they anticipated broadcasting on July 1st but didn’t make that date. Their CP runs out on September 1st. Normally you would expect them to file for another extension, but their most recent comments here seem to indicate another direction---even a defiance of the congressional mandate of February 17, 2009. But let us step back a second and really analyze what the current management might really mean. I think it may mean that this management will not be around to take DT 16 into the digital age or “let the new group do it.” I think the possibility of it being shopped around is very good. I hope I am right for the good of broadcasting in Erie, the CBS network exposure in this market and for the security of their current employees.

Next Chapter 3---What has to happen or how can we bring the consumer out of the dark ages?