HD20 - The Impact of Digital TV on Public Broadcasting in Virginia


Executive Summary:
In December 1996, the Federal Communications Commission approved a new digital standard for television broadcasting, subsequently mandating that all television broadcasters convert from the current analog signal transmission to a digital signal. Public television broadcasters have until May 1, 2003 to meet this mandate. Item 16F of the 1999 Appropriation Act directed the Joint Legislative Audit and Review Commission (JLARC) to study the implications of the federal requirement for digital transmission by the public television stations currently receiving funds from the State. Item 16F further directed JLARC to examine the use of existing State funding by these public television stations.

This study found that the transition to digital broadcasting by the Virginia public television stations will require significant investments on the part of the stations to replace the existing analog equipment with the digital components. AIl totaled, the stations estimate that it will cost $72 million dollars to convert to a digital signal. Additional funds above the $72 million estimate may be required for statewide interconnection and other costs associated with the transition.

While the transition costs are significant, the stations stand to lose their broadcast licenses if the conversion deadline is not met. Currently, the public television stations provide an array of services to school children, teachers, and the general citizenry of the Commonwealth. The stations are relying on the State to provide some portion of the digital conversion costs so that the stations can continue these services.

The decision to provide State funding for the digital conversion of public television is a policy choice left to the Governor and the General Assembly. This report provides information necessary to aid the discussion of this matter, and to guide the disbursement of State funds if the decision is made to provide funding. Specifically, JLARC staff recommend that several factors, representing (1) the equity of station resources available to fund the conversion, (2) the efficiency of service coverage, and (3) the degree of public service provided by the individual stations, be considered in allocating State funds for the conversion.