Feb 7, Despite Digital TV Delay, Shortage of Converters and Funds Possible
NEW YORK – Stores could soon run out of the federally subsidized converter boxes that let an older television set receive new digital signals, according to the Consumer Electronics Association.
Manufacturers stopped making the boxes in early January, expecting that demand would peak around Feb. 17, when U. S. full-power television stations were slated to turn off their analog signals. But Congress this week voted to extend the deadline to June 12.
As talk of a delay grew last month, manufacturers restarted their converter-box assembly lines, said Michael Petricone, senior vice president of government affairs for the consumer electronics group. But the new boxes will take time to reach stores.
The trade association estimates U. S. retailers have 3 million to 6 million boxes on hand.
“The worst case is that there are only 3 million boxes,” Petricone said. “Retailers would then run out of inventory by the end of February.”
What makes predictions difficult is that the government has run out of money for coupons to help the public buy the boxes. The waiting list has 3.7 million requests.
More funds might be provided in the economic stimulus package, and if they are suddenly released through the coupon program, boxes could run out even faster, Petricone told the Federal Communications Commission on Thursday.
Retailer inventories more likely are closer to 6 million boxes, Petricone said, which means stocks should last until newly made boxes arrive in April.
Nielsen Co. estimates that 5.8 million households are unprepared for the shutdown of analog signals. Some of them may have converter boxes but have not hooked them up. Others may need more than one box.
Many stations will stick to the original Feb. 17 shutdown date, but some broadcasters, particularly in big cities, have committed to delaying their analog turnoff until June.
Once analog signals are cut off, consumers with older analog TV sets that receive over-the- air broadcasts with an antenna will need to buy a digital TV set or install a converter box to keep receiving signals. People who subscribe to cable or satellite TV will not be affected.
Comments off