Digital Mandate
The D.C. Circuit Court of Appeals today upheld the FCC requirement (CNN story) that all tuners receive digital TV signals by July 2007.
I fail to understand why the digital TV transition warrants a government mandate of this sort. While I’m generally not inclined towards knee-jerk anti-regulatory opinions, this seems to be a perfect case to let the market do its work. I invite anyone to make a convincing argument for market failure here. If people aren’t purchasing digital televisions, it’s because (1) they’re too expensive or (2) they’re not interested (1 and 2 are really the same thing). There’s no evidence of a particularly high barrier to entry to the DTV market, so there’s nothing stopping any particular manufacturer from marketing cheaper or more appealing DTV tuners, and there’s no need for the entire industry to be forced to make this transition.
Sure, you might purchase a non-digital tuner today and be screwed in four or five years if this transition really does occur, but that’s a risk you should be able to take, and the price should (and does) reflect that risk. I’m happy to buy somewhat obsolete technology for 80% off, even if I can only use it for a couple years, and then buy something new at that point, when hopefully I’ll have a source of income.
Can someone make a convincing argument why the state needs to force manufacturers to make what people aren’t demanding?