Best Buy Survey Shows DTV Awareness is High, but Many Consumers Will Wait to Act until after the Transition Date

MINNEAPOLIS--(BUSINESS WIRE)--In a recent survey¹, Best Buy found that while nearly nine in ten (88%) consumers are aware of the digital broadcast transition (DTV), Americans are still confused about why the transition is happening and what really needs to be done to prepare.

The nation’s largest consumer electronics retailer surveyed consumers nationwide on their level of understanding and awareness of the federally mandated transition to digital television. The survey found that nearly half (45%) of those who haven’t already prepared for the transition are going to wait until after the digital deadline to take action, meaning many Americans could see an interruption in television programming or will find themselves making a last minute scramble to get DTV-ready.

“At Best Buy we have been encouraging consumers to act sooner rather than later to get ready for the DTV transition,” said Mike Mohan, senior vice president of consumer electronics for Best Buy. “In addition to detailed information on our website, bestbuy.com, we have trained home theater specialists in our stores and on our dedicated hotline to help answer questions and help people prepare now.”

Although the majority of consumers (60%) know that February 17, 2009 is the DTV transition date, more than half (54%) do not understand why the transition is happening. The government decided to mandate the switch to digital broadcasting for all full power stations to free up portions of the broadcast spectrum for other important services, such as public and safety services (police and fire departments, emergency rescue), and advanced wireless services.

Other interesting and notable statistics from the survey include:

• Nearly a third (31%) of TV owners don’t know what type of TV they have - analog or digital.
• The majority of consumers who will prepare, plan to subscribe to cable or satellite (43%).
• Of the households who have done nothing to prepare for the transition, one in five (21%) believe they simply can not afford to, while those with an analog TV incorrectly believe the cost of the converter box is $56, after the $40 coupon.
• About one in five (18%) of consumers with an analog TV believe nothing will happen after the DTV transition, and that their analog televisions will look similar to how they look now.

¹ GfK Custom Research North America, April 2008

Three Options for Consumers to Comply with the DTV Transition

By February 17, 2009, consumers who receive over-the-air TV programming will have three options to receive TV broadcast signals after the DTV transition. These three options include:

1. Purchase a digital-to-analog converter box that plugs in to an existing analog television. Coupon-eligible converter boxes are available at all 900+ Best Buy stores throughout the country, costing about $20 per converter box after the $40 government coupon.

2. Subscribe to a cable, satellite or other paid television service.

3. Purchase a television with a digital tuner.

About Best Buy Co., Inc.

Best Buy Co., Inc. (NYSE: BBY) operates an international portfolio of brands with a commitment to growth and innovation. Our employees strive to provide customers around the world with superior experiences by responding to their unique needs and aspirations. We sell consumer electronics, home-office products, entertainment software, appliances and related services through approximately 1,300 retail stores across the United States, throughout Canada and in China. Our multi-channel operations include: Best Buy (BestBuy.com, BestBuy.ca, BestBuy.com.cn and Best BuyMobile.com), Future Shop (FutureShop.ca), Geek Squad (GeekSquad.com and GeekSquad.ca), Pacific Sales Kitchen and Bath Centers (PacificSales.com), Magnolia Audio Video (Magnoliaav.com), Jiangsu Five Star Appliance Co. (Five-Star.cn) and Speakeasy (Speakeasy.net). Best Buy supports the communities in which its employees work and live through volunteerism and grants that benefit children and education.

About the Survey

The findings presented are the result of 1000 telephone interviews conducted using an RDD methodology from April 18-21, 2008, by GfK Roper Public Affairs and Media Omnibus Services. The survey was conducted among a representative sample of adult men and women aged 18 years and older in the continental United States. Data were weighted for sample balancing by gender, age, education, race and census region. The margin of error for the total sample is +/- 3 percentage points at the 95 percent confidence level. The margin of error for subgroups is higher.