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 SEPARATE  STATEMENT  OF  CHAIRMAN  MICHAEL  K.  POWELL 
 Re:  Annual  Assessment  of  the  Status  of  Competition  in  the  Market  for  the  Delivery  of  Video  Programming 
 As  evidenced  by  this  year’s  Report,  at  the  forefront  of  the  digital  migration  taking  root  in  every  sector  of  the  communications  landscape  and  bringing  vast  benefits  to  Americans  across  the  country, 
 stands  the  television  industry.  Whether  one  focuses  on  distribution  or  programming,  today’s  video  marketplace  is  the  most  competitive  and  diverse  in  our  nation’s  history.  The  good  news  for  the  viewing 
 public  does  not,  however,  end  here.  The  continued  proliferation  of  emerging  broadband  digital  platforms  and  services  promise  a  future  of  more  competition,  diversity,  localism  and  personalization  in  the  video 
 marketplace. 
 The  past  decade  has  brought  great  change  to  the  video  distribution  marketplace.  A  blip  on  the  radar  screen  ten  years  ago,  direct  broadcast  satellite  (DBS)  now  serves  one  in  four  pay  television 
 subscribers.  Almost  every  household  in  the  country  can  enjoy  video  programming  from  a  multitude  of  providers  including  over-  the-  air  local  broadcasters,  one  cable  operator  (and  in  several  communities  a 
 cable  over-  builder)  and  at  least  two  DBS  providers. 
 The  analog  systems  of  yesteryear  are  giving  way  to  digital  platforms,  as  over  1,400  broadcast  stations  are  broadcasting  in  digital,  and  almost  all  cable  systems  and  DBS  providers  deliver  some  or  all 
 video  programming  digitally.  The  digital  migration  in  the  video  distribution  market  is  also  bringing  new  players  into  the  market.  The  major  incumbent  local  exchange  carriers  have  announced  plans  to  offer 
 video  service  over  new,  fiber-  based  distribution  platforms.  Broadcasters  such  as  Emmis  and  USDTV  are  leveraging  their  digital  assets  to  offer  low-  cost  pay-  television  services  to  several  communities  across  the 
 country.  Continuing  advances  in  broadband  Internet  speeds  and  compression  technologies  are  allowing  thousands  of  channels  to  emerge  on  the  Internet,  offering  streaming  video  to  millions  of  PCs  at  both  home 
 and  work.  Finally,  this  next  year  promises  to  bring  more  video  to  mobile  devices,  offering  the  public  the  ability  to  get  their  news,  information  and  entertainment  anywhere,  anytime. 


 The  power  of  digital  video  services  and  technologies  to  enhance  consumers’  ability  to  enjoy  and  participate  in  the  video  marketplace  is  greater  than  ever  and  only  increasing.  Personal  video  recorders 
 continue  to  flood  the  marketplace,  making  the  viewer,  not  the  executive,  the  programmer.  This  year  promises  advances  in  long-  awaited  interactive  television  services,  giving  the  public  more  control  over 
 their  viewing  experiences.  Even  more  important,  individuals  are  using  video  and  the  Internet  to  be  active  programmers—  some  creating  their  own  documentaries  or  entertainment  programs  and  finding 
 distribution  on  the  Internet.  Most  exciting  in  this  area  may  be  the  proliferation  of  Vblogs—  the  evolution  of  web  logs  is  now  going  video. 


 We  stand  at  a  remarkable  time  in  the  development  of  the  video  marketplace.  A  time  at  which  we  can  say  with  great  confidence  that  the  monopolies  of  the  past  have  given  way  to  the  most  competitive 
 video  marketplace  at  any  point  in  history;  yet  continuing  developments  in  the  video  marketplace  will  ensure  that  today  is  also  the  least  competitive  the  marketplace  will  ever  be.  A  bevy  of  new  platforms, 
 services,  devices  and  programming  options  promise  infinite  new  choices  for  Americans  in  the  days,  months  and  years  to  come. 
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