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News & Commentary
NAB Warns Of Digital TV Box Shortage
Trade group chief issues letter suggesting insufficient converters will be available this January.
By Phillip Swann
 
Washington, D.C. (May 15, 2007) -- National Association of Broadcasters CEO David Rehr says consumers may not be able to purchase Digital TV converter boxes next January when the federal government begins issuing converter coupons.

In a letter sent yesterday to the Consumer Electronics Association, Rehr expressed concern that retailers will have enough converters to go around.

“It is critical to our collective success that manufacturers build, and retailers have available for sale, digital-to-analog converter boxes by (January 1, 2008)," Rehr said. “As I am sure you are aware, if boxes are not produced and on store shelves on Jan. 1, 2008, significant consumer confusion will result and could negatively impact the overall success of the transition."

The nation is not scheduled to switch from analog to Digital TV until February 17, 2009. At that time, viewers will need a Digital TV, a subscription to a pay TV service or a digital converter box to continue watching TV.

However, this January 1, 2008 is an important date because the federal government is expected then to begin issuing $40 coupons for consumers to buy the digital converter boxes.

“When the coupons become available, we want to make sure the converter boxes are also available,” Dennis Wharton, NAB's executive vice president, told Multichannel News yesterday. “Also, NAB plans to have our educational campaign up and running in a big way in 2008. The last thing we want is to be airing PSAs encouraging people to take advantage of the converter-box program, only to find there are no converter boxes in stores.”

Multichannel News reports that the CEA did not have an immediate comment on the Rehr letter.

Click to see Swanni's analysis of the Rehr Letter.

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Phillip Swann is president and publisher of TVPredictions.com. He has been quoted in dozens of publications and broadcast outlets, including CNN, Fox News, Inside Edition, The New York Times, The Washington Post, The Chicago Tribune, The Financial Times, The Associated Press and The Hollywood Reporter. He can be reached at swann@tvpredictions.com or at 703-505-3064.

Click TVPredictions.com to read more news and features on TV technology. 

 
 
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