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"Koeppel Direct's media buying expertise has played an integral role in making my company successful. Koeppel generated so much business for our company, occasionally we have to limit their media buys, in order to handle all of the new business." | |
| - R. Gregg Marketer of Senior Products |
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MEDIA BUYING DIRECT RESPONSE TELEVISION (DRTV) ARTICLE ...... |
Should the Government Help People Upgrade their TVs to Receive Digital Signals?
By: Peter Koeppel
Published: 03/06 |
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In mid-February 2009 television stations will begin broadcasting via digital signal
instead of the analog signal they've always used. As part of this conversion, the House and Senate
recently approved a plan to pay a $40 subsidy to low-income families toward a converter box that
will allow those with analog TVs to view the digitally broadcast programs. I don't believe this
is a good idea, nor is it necessary.
The primary reason the federal government should not subsidize conversion boxes is that watching
TV is not a basic right to which Americans are entitled. TV watching is a form of entertainment,
which I would not consider a basic right. I believe the government should protect certain rights
such as freedom of speech, protect people from discrimination, provide education and security,
protect the environment, etc. These are important areas where the government should be concentrating
its efforts. I don't feel that TV viewing fits into the same category as those rights and protections
that make this such a great country to live in. Therefore, the government should not be responsible
for making sure that everyone has the ability to watch TV.
I think, with some preparation, most households currently not equipped to receive digital TV could
afford the cost of a converter box. They have plenty of time to save for them. And, since the
price of new TVs has dropped dramatically, perhaps they could afford a new or newer used TV.
Furthermore, the government could face a nightmare trying to identify people eligible for the
conversion subsidy. The government will most likely have to provide anyone who applies for
the subsidy with a $40 coupon.
An option to resolving the issue is a funding plan floated by the Consumer Electronics Association.
They have proposed that an additional tax of 3.5 percent be added to the cost of digital TV
purchases, which would amount to about $40 per sale. This approach could quickly generate the
projected $3 billion or more needed for conversion. Manufacturers may not like the idea of adding
$40 to the cost of their product, but it's an idea worth considering.
Mr. Koeppel is the president of a leading DRTV media buying firm, Koeppel Direct. They buy infomercial
media for some of the top infomercial companies on TV.
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