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Digital TV Hits a Recession Hurdle

Let’s just bring out this unpopular view right now: We don’t think the digital TV switch delay from February 17 to June 12 is a good idea for anybody. Especially consumers.

Here’s why: right now, digital televisions (the only kind they make now) are selling for all-time lows. Flat-panels have dropped to as low as $400 for 32 inches and smaller, sometimes as low as $300 or less for lower-end brands. The higher end of the market, where Sony’s TVs play, have seen markdowns of 50 percent of more, including Sony’s 40-inch Bravia, once $2000, now just $1000 on Amazon.

Right after the Super Bowl is the best time to look for sales on high-def models that key buyers would have purchased for the big game.

Think about it: Circuit City is in liquidation and closing altogether. Best Buy is in trouble, too, but by June, it may have found its footing. Though it’s hardly likely to turnaround altogether, the company’s record-low prices may have begun to slowly creep upwards, especially as lower demand last year would have meant fewer TVs manufactured and less glut to be forced to (i.e. slash prices and) move.

Further, digital TV is good for the economy. It will make advertising more efficient and effective (in the future, if you don’t have a dog, you won’t have to watch an ad for dog food), which will mean more advertising money being pumped into media, translating into increased sales of products, which is the key to bringing back jobs lost to low demand.

Oh, this may feel like a bit of a stretch. And we’ll really only know for sure when the springtime comes and the economy does or doesn’t reawaken with it.

But one thing’s for sure: the government ran out of the $40 vouchers it was offering consumers to buy digital converters for their analog sets. There are 70 million people who get their television through over-the-air broadcast. So far, there are 103,000 people wait-listed for vouchers. Things don’t look very good for anyone in Washington looking for additional funds — so at least let the consumer get a better deal on a TV now.

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