As DTV Conversion Looms, Set-Top Boxes May Be the Answer

This just in: in February of 2009, the United States will switch to digital broadcasting of television programs.

While this may not be the most current news in the installation trade, it's worth reconsidering.

High-definition television has been one of the engines driving the custom installation marketplace for the past half dozen years or so.

Different video formats have evolved, and the electronics that process those signals have certainly improved dramatically. Consider the fact that the cost of these items has dropped just as dramatically, and it's even more impressive.

And that leads us to digital television.

Will Commercials Decide What You Watch?

The broadcasts we have been watching (and some of us enjoying) for the duration of television's history in the United States have been analog signals.

When February 2009 rolls around, the majority of broadcasts will switch over to a digital signal. Some of those signals will be considered high definition, and some will be of higher quality than what's shown today.

Essentially, the deciding factor as to what is going to show up on your television screen may come down to economic factors.

The FCC has allocated a certain amount of airwaves to each licensed broadcaster. That amount of space, called bandwidth, is open to usage (within limitations) as the license holder sees fit.

Different signal types may use more or less bandwidth. In other words, a broadcast at 1080i uses substantially more bandwidth than one at 480p.

If you have a set amount of bandwidth available, you as a broadcaster may choose to put several 480p broadcasts on the air simultaneously instead of one 1080i signal. That's why you'll find select broadcasters offering one, two, three or more program choices.

In the words of a character from the movie "Chinatown," "Follow the money."

If the broadcaster chooses to air multiple 480p signals simultaneously, it can potentially sell more commercials. Perhaps the commercials won't bring in as much revenue on a per-air basis, but since there will be more of them, the potential for revenue increases.

Since the broadcaster has recently had to upgrade its equipment to meet the new standards, this is clearly attractive.

Most of the United States has heard about this great change over. The manufacturers of television sets have certainly done all they can to convince citizens to upgrade to HDTV sets.

But not everybody wants or needs a new television set.

Who Really Needs a New TV?

If our hypothetical customer, Mr. Smith, has a large number of TV sets in his home, he may decide to upgrade only his primary sets.

Based on national averages, that leaves many televisions in his home potentially darkened when the changeover occurs.

If Smith is a satellite television subscriber, he won't be faced with a dark picture. The satellite set-top box that has worked in the past will continue to work, offering lots of channel options for the Smith family to enjoy.

If the Smith family subscribes to cable television, either with or without a cable box, chances are also very good that he will be able to watch non-high-definition programming for many years.

It's the folks out there who aren't using satellite or cable that are potentially being squeezed. The FCC understands that telling Mr. or Mrs. America that their TV set is not going to work anymore is not a good public relations move, and so they devised a set-top box program to help ameliorate the problem.

The details are pretty straight forward:

• Smith is eligible to request up to two coupons (worth $40 each) to help offset the cost of the aforementioned set-top boxes
• These boxes are available through electronic installers and retailers (among others); however, not every installer or retailer has taken the steps needed to redeem those coupons
• If you have to ask if you are eligible, you're not. Registration to become an authorized FCC reseller of those boxes closed late last winter

When our mythical Smith family receives their coupons, they have two months to go and redeem those coupons toward the purchase of the set-top boxes.

According to some reports, many folks are getting the coupons and, due to sloth or lack of boxes, are not redeeming those $40 coupons. The FCC has determined that consumers will only get one chance at redemption.