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DTC: 46.2 Million Converter Boxes Sold Under Coupon Program

– Approximately 46.2 million digital-to-analog converter boxes shipped during
the period of the government-subsidized TV converter-box coupon program,
according to a study released Monday by Digital
Tech Consulting

The National Telecommunications and Information
Administration (NTIA) program, which recently saw the last eligible coupon
expire, generated more than $2.5 billion in retail revenue, according to DTC.

The one-time opportunity generated much-needed cash during recessionary
conditions that otherwise would have kept many consumers out of stores.

“They may have not been high-margin sales, but manufacturers
and retailers received a welcomed boost from the converter-box market,” stated
Myra Moore, DTS president.

To replace the lost revenue from the low-margined converter
boxes, DTC suggested retailers could push stripped-down portable DVD players, many
of which are retailing in the $50 to $80 range.

Another candidate comes in the form of new small “tea cup” LCD
TVs with 7-inch and 9-inch screens and internal ATSC tuners. Some incorporate DVD

“The research firm pointed out that most TV-only models hover
in the $100 range but as the holiday selling season reaches its end, off-brand
sets will probably be heavily discounted and perhaps star as loss leaders in
the big-box stores,” Moore said.

As for the converter-box category, DTC said the market will never
see the sales volume of the last 18 months, but limited sales will continue for
a couple of years. DTC estimated that there will likely be another 2 million
units shipped in the next few years.