A Guide to the Digital TV Conversion

With the transition to digital television less than a month away, it’s time to make sure your set is, well, set.

On Feb. 17, all major TV stations will cease transmitting programs in analog format, and broadcast only in digital. Many consumers who bought a TV after mid-2007 or subscribe to cable or satellite service, won't skip a beat when the conversion occurs, says Michael Gartenberg, vice president for market researcher Jupiter Media. However, households that rely exclusively on free over-the-air TV signals -- an estimated 19.4 million, according to the National Association of Broadcasters -- may find themselves staring at a blank screen come mid-February. The only way for this group to prepare for the switch is to buy a new television, get cable or satellite service, start watching TV online or buy a converter box (see below for tips on all these options).

To help consumers make the digital leap, the government is offering each household up to two vouchers worth $40 each (click here to request one) toward a converter box. Here's the bad news: If you haven't already applied for a coupon you won’t receive it in time for the transition, says Linda Yun, a spokeswoman for the National Association of Broadcasters. The National Telecommunications & Information Administration, the government agency overseeing the program, ran out of money to distribute the coupons in early January. Now there's a waiting list of more than 2.5 million requests. So if you haven't requested a voucher yet, you’ll either need to let your set go dark until Congress comes up with more funding and works through the backlog, or forgo the coupon and pay full price for the box.

Fearful that millions of households won't be prepared in time, some members of Congress are pushing to delay the conversion until June. President Obama’s transition team also called for the delay earlier this month, predicting that six million more coupon requests could flood in before February and further delay mailings from the cash-strapped government program.

Nevertheless, the conversion will happen at some point. If you're one of the holdouts here's what you need to know.

Install a converter box. Set-top converter boxes, which retail for $40 to $80 at most major electronics stores, switch over-the-air digital signals into analog. One box is needed for each TV. If you opt for a converter box, you may also need a new antenna. Most digital transmissions use UHF signals, while analog primarily uses VHF, explains Yun. Even if your current antenna picks up both, digital signals may require a stronger model or different antenna placement in your home. “They’re more susceptible to blockage from things like hills or buildings,” she says. Prices for antennas start at $15.

Sign up for satellite or cable TV service. Pursue this option and you won't need a converter box or a new television set. However, you will get stuck with what could be a pricey bill each month. (The average consumer pays about $41 a month for cable or satellite service, according to the U.S. Census Bureau.) Ask about special deals for new subscribers transitioning from over-the-air transmission. Comcast (CMCSA) is offering consumers a choice of limited basic cable for $10 a month for the first year (regularly $12.15), or free basic cable for a year when bundled with Internet or home phone service.

Buy a new TV. Take your pick -- all TV models on store shelves contain a digital tuner to pick up the new signals. (But like those going the converter box route, you may also need a new antenna to continue receiving over-the-air signals.) Prices on new sets typically fall before and just after the Super Bowl (this year, the game is on Feb. 1), so start browsing the sales now (see box below). Don't forget to hang on to your receipt to claim a price adjustment should the price of your newly-purchased set dip further after you get it home.

Watch on your computer. Can't afford to shell out any cash for the conversion? If you have a high-speed Internet connection, you can watch broadcast TV content online. With the networks’ blessing (and often, partnership), sites like Hulu, Fancast, TV.com and Joost post full-length episodes of select prime-time shows like “Dexter,” “Lost” and “Ugly Betty” a day or two after they air.

For those who must watch in real time, consider a TV tuner card, says Gartenberg. These kits include an adaptor that plugs into your USB drive, as well as an antenna for picking up the broadcast signal. Some even include a TV remote and video recording capability. Prices run from $50 to $100.

Best Buy (BBY)
Save 15% (or more) on more than 130 models. A 42-inch Panasonic plasma, for example, costs $1,000 instead of the regular price of $1,700. You save 42%.

Sears (SHLD)
Receive a mail-in rebate worth 10% cash-back on TVs size 40-inch or larger when you pay with your store credit card. Offer good through Jan. 24.

Sony (SNE)
Save $300 to $400 when you buy a bundled package of a television and a Blu-ray player.

Target (TGT)
Save 5% or more on select models through Jan. 24. A 52-inch Philips LCD, for example, is $1,800 instead of $2,000 -- a savings of 10%.

* Data from retailers.