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

Thank You

Megan Pollockmpollock@ce.org+1.703.907.7668