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The US Transition to Digital TelevisionMegan Pollock
Senior Manager, Communication, CEA
TV Landscape
Buying More Digital
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
0.0 0.1 0.6 1.54.1
5.58.0
11.3
23.526.4
32.7
34.6
DTV Sets and MonitorsMillions of Unit Shipments
Digital TV Pricing- Average Wholesale Price, Non-Inflation Adjusted $ -
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
$3,147
$2,433 $2,201
$1,814 $1,693 $1,590 $1,537
$1,369
$995 $954 $823 $761
Digital Surpasses Analog
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 20090
10
20
30
40 TV Sets and Monitors
Millions of Unit Shipments69% DTV
DTV vs. Color TV PenetrationIncludes Sets and Monitors
1 2 3 4 5 6 7 8 9 10
-20%
0%
20%
40%
60%
DTV
CTV
Topped 20% in 2005
DTV year 1 is 1998, CTV year 1 is 1956
Only hit 5% in year
10
55%
23%
2%
9%
1%
Cable
Satellite
Sat/Cable
Antenna
Not Connected
Snapshot from August 2008
U.S. TV Reception ProfilePercentage of U.S. Households
US Regulations
U.S. Government Requirements
FCC REQUIREMENTS: All new TVs are able to tune and decode over-the-air ATSC signals per this schedule:
Screen Size 50% of All Units 100% of All Units 36” and above July 1, 2004 July 1, 2005 25” to 35” July 1, 2005 March 1, 2006
13” to 24” March 1, 2007 Less than 13” March 1, 2007 TV interface devices (e.g., VCRs) March 1, 2007
U.S. LAW: Full-power analog TV broadcasts will be turned off February 17, 2009 June 12, 2009; analog spectrum has been sold (auctioned), primarily to mobile operators
Converter BoxesCongress provided ~$1.8 billion for subsidy coupons to assist consumers who do not want to buy a new TV or subscribe to a pay-TV service (e.g., cable, satellite)
• $40 coupons, two per household, may be used to buy a digital-to-analog converter
• Dept. of Commerce has certified many models which are now available at stores and online, priced $40 to $60
• July 31, 2009 was the last day to apply for a coupon
• In all, 34.8 million households ordered 64.1 million converter box subsidy coupons.
• As of Nov 4, 34.8 million coupons had been redeemed.
• On Nov 9 2009 the final coupons will expire.
Consumer Education
DTV Transition
41%
86%
98%Aug-06 Aug-09
Feb-09
Awareness of the DTV Transition
DTV Transition Coalition
• Public/private partnership• Over 240 members
DTV 101 Video
Quick Start Guide
Results
Success!“Switch to Digital Television Went Remarkably Well”
USA Today
“Changeover to Digital TV Off to a Smooth Start” New York Times
“Digital TV Conversion isn’t Creating a Lot of Waves” LA Times
“Few Early Glitches Reported in DTV Switchover, Day One” CE Daily