Households to get coupons for digital TV switch

By Brooks Boliek

WASHINGTON (Hollywood Reporter) - Brushing aside congressional suggestions that the nation is ill-prepared for the conversion to digital TV in 2009, the Department of Commerce on Monday unveiled its plan to help subsidize the switchover from analog.

In the National Telecommunications and Information Administration (NTIA) plan, each household can claim two $40 coupons that they then can use toward the purchase of a set-top box that can translate digital signals so television shows can be viewed on analog TVs.

"The transition from analog to digital television is a historic change and brings with it considerable benefits for the American consumer," Secretary of Commerce Carlos Gutierrez said. "The coupon program is designed to help ease the transition to digital TV. Not only will the transition help expand consumer choices, but more importantly, the digital transition will enable more efficient use of the nation's airwaves, providing new advanced wireless services and increased public safety services for all Americans."

While the plan envisions as many as 33,750 of the coupons (actually a card similar to consumer gift cards), it is unlikely to be enough to convert the tens of millions of analog TV sets. There are about 73 million TVs in America, though many of them are hooked up to cable, or satellite TV service. About 15% of the TV-watching population depends on an antenna for its service.

Government officials hope that enough consumers will either decide to buy TVs that can automatically receive the digital signals or switch to digital cable or satellite TV to ease demand for the boxes.

"This is one option," Assistant Secretary for Communication and Information John Kneuer said.

Analog signals are scheduled to cease February 19, 2009. From then, TV programming will be transmitted digitally. Digital signals allow broadcasters to air high-definition programming with its movie-quality picture and CD-quality sound or several "standard-definition" programs or other programming streams.

Lawmakers have questioned the wisdom of the switch and its methods.