Digital TV Countdown
Monday, December 24, 2007PAUL KANGAS: Flat-panel digital televisions are one of the hottest holiday gifts around and soon they'll be even more popular. In just over a year, TV is going digital, with television stations being required by law to stop broadcasting analog signals. As Stephanie Dhue reports, millions of households will have to make changes to keep their TV's from going dark.
STEPHANIE DHUE, NIGHTLY BUSINESS REPORT CORRESPONDENT: The transition from analog to digital television has been in the works for 20 years, but a recent survey shows about half of all Americans don't know about it. Federal Communications Commissioner Michael Copps predicts a train wreck if the administration doesn't take a more active role educating the public.
MICHAEL COPPS, FCC COMMISSIONER: We don't really have government coordination or government leadership to direct a good program to bring the private sector parties together and make sure they’re all operating in concert with one another and spreading a similar message.
DHUE: But the television industry isn't waiting for the government to act. The National Association of Broadcasters has already begun an educational public service campaign. Public television stations are planning how-to programs and are working with groups like AARP to raise awareness. John Lawson heads the Association of Public Television stations.
JOHN LAWSON, PRESIDENT & CEO, ASSOCIATION OF PUBLIC TELEVISION STATIONS: We're sort of boot-strapping a very extensive, grassroots outreach campaign to make sure that by February 2009, everybody knows what their options are.
DHUE: Basically, the options are to either subscribe to cable or satellite, buy a digital TV or purchase a converter box, now retailing for about $200, to convert the digital signal on an analog set. The cost of converter boxes is expected to drop over the next year. The government will be providing some relief. Soon consumers will be able to apply for a $40 coupon to help defray the costs. Retailers who stand to profit from the transition are also alerting consumers. Best Buy stopped selling analog sets in October and now only sells digital ones. Store manager Ryan Seymour says most customers opt to buy a new TV.
RYAN SEYMOUR, STORE MANAGER, BEST BUY: Because of the price of flat- panel TVs now, a lot of people are deciding to upgrade their TV.
DHUE: The transition has benefits. Viewers will have more choices of programming, with many over-the-air stations providing three or four channels. Public television's Lawson says the transition is an opportunity.
LAWSON: We have probably at least two generations of Americans who think television comes out of a little silver plug on the wall, that you have to pay a monthly fee for it. But with digital, with the great quality we get and the new channels made possible by digital, it actually gives us as broadcasters a chance to reinvent television.
DHUE: But first the industry needs to make sure everyone is aware of the changes coming in 2009 and to help consumers prepare. Stephanie Dhue, NIGHTLY BUSINESS REPORT, Washington.
