The most important statistic in assessing the value of a service is its usage by its target population. In the case of TV broadcasting that is of course the TV homes that rely solely on the service, i.e. OTA-only TV homes. Since the launch of the broadcasters' $12bn+ DTV service back in Nov. 1998, the percentage of OTA-only homes has fallen from 30% then to 12% today. With the end of analog TV broadcasting in sight (February 17, 2009), the percentage of OTA-only homes could drop to 5% or less by 2010 triggering perhaps the end of our only free TV service. Certainly those that need spectrum for other services and are prepared to pay for it would welcome such an event.
The failure of the broadcast TV service conversion to digital can be largely attributed to the total lack of support from the nation's TV dealers who do not promote nor demonstrate the service. Best Buy and Circuit City restrict their DTV displays/promotions to one of the two direct-to-home satellite DTV services or the local cable DTV service, though both will sell federally subsidized digital-to-analog converter boxes. Curiously, neither Congress nor the FCC, nor indeed the broadcasters, have expressed any concern about the lack of TV dealer interest in the OTA DTV service. Add to that the fact that the FCC, with no apparent objections from the TV industry, discontinued reporting on the declining percentage of TV homes that rely solely on the OTA service. Maybe the FCC is already convinced that OTA broadcasting is "irrelevant." Now along comes Internet TV to deliver the coup de grace as it surely will if the transition to digital continues on its current path. Internet TV, if packaged properly by the broadcasters, has the potential to give our only free TV service a new lease on life rather than making it irrelevant as predicted by Mr. Gates. FreeDTVPlusTM would do just that if it is adopted by the broadcasters.