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For the vast majority of Americans, analog TV sets aren't supposed to go black as part of the switch to all-digital broadcasts until February 17, 2009. But federal regulators are expected to announce Thursday that Wilmington, N.C., has volunteered to make the transition several months early as part of a last-minute test of sorts, The Wall Street Journal reports.

The waterside town of about 100,000 plans to cut off its analog broadcasting as soon as September 8, according to the Journal and confirmed by a source familiar with the matter. North Carolina is Federal Communications Commission Chairman Kevin Martin's home state, but it was unclear whether that had anything to do with the test market's choice.

The FCC has scheduled a press briefing Thursday afternoon, where a formal announcement is expected to be made. An agency spokesman declined to comment further but said Martin would be answering questions about the plans at that event.

As part of the larger digital television transition, people who rely on over-the-air broadcasts will have to outfit their analog TVs with converter boxes--which the U.S. government has offered to partially subsidize--or buy new digital TVs or peripherals, such as VCRs.

Of course, residents who rely on cable or satellite for their television service won't have to worry about making any changes to their TV-watching set-ups. For more on what the switch means for you, see our FAQ.

After a dramatic rise to the top of the LCD TV market last summer, Vizio seemed to have gotten a taste of reality as it settled back down to the No. 3 spot through the end of the 2007.

But it appears Vizio is ratcheting up the price pressure again on its closest competitors, according to new figures from iSuppli, a market research firm that monitors the LCD industry.

For the first quarter of 2008, the top vendors' share of unit shipments, led by Samsung with 13.9 percent of units shipped, and followed by Sony (13.7 percent) and Vizio (13.5 percent), remain separated by 0.3 of a percentage point. The three were separated by 1.8 points in the fourth quarter of last year.

As the economy worsens, and consumers have less discretionary income for luxury purchases like a flat-panel TV, lower-priced sets are going to sell better. Vizio is in a better position than most in its industry to do that because of its distribution channels, which are mainly bargain-friendly outlets like club stores, and Wal-Mart Stores, and because it saves money by not building and maintaining multi-billion-dollar fabs, or panel manufacturing plants. Instead, it buys its panels from those that do.

Both Sony and Samsung have already responded to Vizio's price pressure with lower-cost LCD TVs of their own. But those TV manufacturers that haven't responded similarly to the Vizio threat are finding the North American flat-panel market an increasingly difficult place to do business.

Philips was the first to buckle under the pressure, announcing last month that it would no longer make or distribute its own TVs in North America. Instead, it arranged for low-cost TV vendor Funai to do so on its behalf.

Shipments of LCD TVs were down across the board in the first quarter, reaching 5.6 million units, versus the same quarter a year ago when 7.96 million LCD TVs shipped, iSuppli said. Although the first quarter is always the weakest for the industry, it appears the second quarter may not fare much better.

iSuppli says unit shipments in North America are expected to grow just 26.6 percent overall this year, to 27.4 million units. That's a far cry from the 88.8 percent growth in 2007 and the 92.6 percent seen in 2006.

(Credit: Sezmi)

We're constantly hearing that seamless integration of television and broadband video is fast approaching, but nobody's gotten it right yet. That hasn't stopped new companies from jumping into the mix.

Enter Sezmi, the latest start-up hoping to capture the market: on Thursday, the venture-backed company unveiled a piece of hardware that it claims will be able to handle broadcast and cable TV, as well as streaming and downloaded Internet video content.

Currently in testing, Sezmi has already inked partnerships with a number of broadcasters, content companies, and broadband service providers. The ambitious company hopes to start putting its wireless boxes in U.S. residences in a number of major markets by the end of 2008.

Sezmi, formerly known as Building B, isn't naming those partners yet, so it's not clear exactly how many channels or how much Web content will be accessible on the box. But the company nevertheless is willing to call its offering "a complete TV 2.0 solution." In addition to content, a Sezmi box allows for up to five personalized accounts and lets members share their video playlists with friends.

It's able to bridge the gap between television and broadband, according to Friday's announcement, thanks to an in-house technology called FlexCast.

"To deliver the full range of content that consumers expect at an affordable cost, we had to create a network that overcame the limitations of broadband and better aligned with mass-market content consumption," co-founder and president Phil Wiser explained in a release. No pricing information has been provided yet.

"Sezmi focused on the television consumer and built an entirely new television offering from the ground up to meet the needs of viewers that want a premium experience at an affordable price," co-founder and CEO Buno Pati said in Friday's release. "We have rallied support across multiple industries, and are excited to work with our partners to offer a new and differentiated TV choice to consumers."

Hey, Sezmi: Feed us more detail, and maybe we'll be more enthusiastic.

Panasonic has been tapped to pinch-hit for Pioneer.

The two television makers said Wednesday they had come to an agreement in which Panasonic will produce the panels for Pioneer's plasma televisions.

(Credit: Pioneer)

The news comes a month after reports surfaced that Pioneer was pulling out of the plasma business. When Pioneer confirmed it would be finding someone who could make the panels more inexpensively than it could, there was a sense of dismay and disappointment among fans of its Kuro technology. Pioneer plasma TVs are generally regarded by experts--including CNET Reviews' David Katzmaier--as having the blackest black levels of any TV on the market.

In a joint statement, the two companies said they will build a new type of panel that integrates Pioneer's Kuro technology and Panasonic's NeoPDP, which it currently uses in its Viera TVs. Panasonic will have the panels sporting the new, combined technology ready for Pioneer by the second half of 2009.

Panasonic is the largest producer of plasma TVs, so the panels should be more affordable for Pioneer, which is trying to cut costs. Neither has said how much the panels will cost.

To the list of comedians trying to cash in on the Web, add The Groundlings, the revered Los Angeles improvisational comedy troupe.

The group, which helped launch the careers of Will Ferrell, Phil Hartman, and Lisa Kudrow, announced Wednesday that it has agreed to produce 50 Webisodes over a year. The clips, which will be distributed by Sony Pictures Television, will appear on the Internet as well as mobile phones.

Financial details were not disclosed.

Comedy clips for the Internet. Sites like CollegeHumor and Funny or Die have attracted plenty of attention from fans and investors.

Funny or Die, co-founded by Ferrell and backed by venture capital firm Sequoia Capital, made a splash last year after the comedian released a clip called "The Landlord." The video became an Internet super hit and was viewed more than 55 million times.

This National Association of Broadcasters' "TV Trekker" truck is one way that broadcasters are trying to get the word out about next year's switch from analog to digital TV broadcasts.

(Credit: Anne Broache/CNET News.com)

By now, you've probably seen at least one of those televised public service announcements--or maybe even read on this very Web site--about how the U.S. government is forcibly cutting off analog TV broadcasts starting next February. And if you're a cable, satellite, or Internet-based TV subscriber, you probably already know that you shouldn't have to make any changes, and if you rely on over-the-air broadcasts, you may have already requested a taxpayer-funded coupon for a converter box.

Well, it seems your elected representatives on Capitol Hill don't have a lot of faith in the ability of their constituents--particularly ones who are elderly and live in rural areas--to make whatever adjustments are necessary to keep their TV sets from going dark when that juncture arrives.

At a hearing on Tuesday afternoon, Democrats and Republicans on the U.S. Senate Commerce Committee sounded repeated alarms about the coming switch to all-digital broadcasts--and grilled the transition's top two administrators, Federal Communications Commission Chairman Kevin Martin and National Telecommunications and Information Administration Chief Meredith Baker, about how they can be sure the message is getting out to every nook and cranny of the country.

Some suggestions arguably verged on the impractical. Sen. Ted Stevens (R-Alaska), voiced concern about getting the word out to "those people in rural areas who rely on the (TV) system but don't pay attention to it," a notion that Sen. Claire McCaskill (D-Mo.) seconded.

Sen. Mark Pryor (D-Ark.) said he is concerned about reports, which he claimed arose from a recent Washington Post article, that if people don't type in the "exact right" Web site address for the coupon program (It's http://www.dtv2009.gov, for the record), then eager coupon applicants will be stymied. He instructed Baker to make sure that the Web site can be called up "even with a margin of error," which seemed to suggest he'd like the feds to snap up misspelled domain names.

A number of senators said they were worried that senior citizens would be left behind, and Sen. John Thune (R-S.D.), voiced concern that people living in tribal areas in his home state won't get the message.

In response to the queries, Martin and Baker outlined a familiar list of educational strategies that their agencies are employing. (FCC staffers have been going to senior centers around the country to provide information, for example.) The FCC, for its part, has also called for more frequent public service announcements during peak TV-watching hours.

They also pointed to an backed by trade associations representing consumer electronics manufacturers and retailers, the cable and broadcast industries, public television stations, and civil rights advocates. The National Association of Broadcasters (NAB), which has said it will have spent $1 billion on a "multi-platform" information campaign by the time the transition occurs, has even taken to driving giant TV-shaped trucks around the country as part of its efforts.

The politicians' concerns come amid mixed evidence about how much Americans know about the switch. A survey of about 1,000 American residents conducted in late January by the advocacy group Consumers Union found that more than one third weren't aware of the government's converter box subsidy program and nearly two-thirds incorrectly believed the transition wouldn't affect them. Results of a broadcaster-commissioned survey (PDF) put out the same day found that some 79 percent were aware of the switch.

Sen. Daniel Inouye (D-Hawaii), the Commerce Committee's chairman, said he worried that "too many Americans remain in the dark about what the digital television transition means" and called for monthly reports from the FCC and NTIA about how things are going.

"I've just got my fingers crossed," the veteran senator said. "I hope everything turns out well."

If you're among the 2.4 million Americans who have already applied for government subsidies to offset the cost of a forced digital television upgrade, you should be receiving that voucher soon.

Next week, the U.S. Department of Commerce plans to start mailing out the $40 coupons, which can be used to defray the cost of selected converter boxes that permit older, analog televisions to receive digital broadcasts, Commerce Secretary Carlos Gutierrez said Friday.

It's all part of the congressionally mandated switch from analog to all-digital broadcasts scheduled to occur on February 17, 2009.

Here's a favorite demo that digital TV converts like to show: contrast the snowy picture generated by the good ol' rabbit-ears antenna and analog tuner on the left screen with the clearer image on the right of the analog TV outfitted with a converter box.

(Credit: Anne Broache/CNET News.com)

If you're currently a cable, satellite, or Internet Protocol TV subscriber, you're most likely not going to have to make any changes. But anyone who relies on over-the-air broadcasts will need to purchase a TV or DVD player with a digital tuner--or take the arguably thriftier route of outfitting an existing analog TV with a digital-to-analog converter box.

To that end, the government is allowing any household, regardless of income level or any other factors, to request up to two of the $40 coupons during a first phase, in which 22.5 million coupons are expected to be available. If that supply runs out, Congress can authorize some 11 million more vouchers, but households applying for that batch would have to self-certify reliance on over-the-air broadcasts.

Some 9,700 store locations across the country are prepared to accept the electronic cards next week, and another 7,000 or so expect to be able to redeem them in the coming months, according to the Commerce Department. The coupon-request Web site allows you to search for the nearest retailer who's supposed to be stocking one or more of the certified models.

The eligible boxes--some of which are apparently already in stores--cost between $40 and $70, according to the Commerce Department. Here's a complete list of the more than 30 certified boxes.

Remember that the coupons expire 90 days after they're mailed. Right now, the government isn't allowing households to reapply for help beyond the two-coupon maximum if theirs expire, although some congressional Democrats are urging more flexibility.

Applications are still being accepted online at DTV2009.gov or by calling 888-DTV-2009 (888-388-2009). You can also apply by mail or fax. The government plans to accept applications until March 31, 2009, or until the coupons run out, whichever comes sooner.

For more information about the digital TV switch, check out CNET News.com's latest FAQ.

WASHINGTON--In a political gambit that could lead to higher fees for cable providers and their subscribers, the satellite television industry urged politicians on Thursday to enact a federal law prohibiting "discriminatory" taxes.

DirecTV and Dish Network executives argue that the federal legislation is needed because six states--Ohio, Tennessee, Florida, Kentucky, North Carolina, and Utah--have enacted laws in recent years that impose steeper taxes on satellite subscribers than on cable subscribers. They claim that those laws are a direct result of cable industry lobbying in an effort to make their prices more competitive with those charged by satellite operators.

In congressional testimony on Thursday, a DirecTV executive called for "equalizing" taxes. In states where taxes may be deemed unequal, satellite taxes could go down or stay the same while taxes on cable providers could rise (as would, presumably, the monthly bills that cable subscribers pay).

In apparent response to the concerns of the satellite industry, two Democrats and two Republicans in the U.S. House of Representatives have introduced a bill called the State Video Tax Fairness Act, which was the subject of a subcommittee hearing here. The brief proposal effectively dictates that states must tax all multichannel video services--regardless of whether they are shuttled over cable, Internet protocol, satellite, or other technologies--at the same rate.

Right now, for instance, Florida imposes a 6.8 percent sales tax on cable subscriptions and a 10.8 percent tax on satellite, and Ohio charges a 5.5 percent tax on satellite but no tax at all on cable. (That law was found unconstitutional from one Ohio court, but the decision was on appeal.)

But what that means is that if the law were enacted, any state could theoretically impose taxes at whatever rate it pleases, even if it means raising taxes. For his part, Mike Palkovic, a DirecTV executive vice president, said he would not be averse to seeing Florida, for example, even out its sales tax rates so that cable customers would experience a 4 percent hike.

The National Cable and Telecommunications Association says the possibility of higher taxes for its customers is one reason why it strongly opposes the bill. In prepared testimony, outside counsel Howard Symons said cable operators already pay higher taxes and fees than satellite subscribers and that the House bill would only preserve satellite's "unfair tax advantage."

Whether you buy that argument depends on how you define the word "tax."

To be sure, the cable industry currently faces at least one set of fees that its satellite counterparts don't. Cable companies typically must pay so-called franchise fees in order to dig up streets or access other pieces of public infrastructure to install their wares. Then they often, in turn, pass on those costs to consumers, who most likely don't differentiate between those costs and taxes.

Satellite providers, on the other hand, are exempt under federal law from having to pay franchise fees, largely because installing their product does not require access to those public facilities. Satellite providers are also exempt under federal law from having to pay local taxes, but they're fair game for state taxes.

It's against that backdrop that cable has been lobbying state governments for "parity" in the taxes and fees required of all video providers. Cable argues all it's trying to do is establish a "level playing field" with its satellite brethren, which now serves some 30 million subscribers and, in cable's view, is no longer in need of special treatment.

Consumers advocacy groups--including the National Taxpayers Union, Consumers Union, and Public Knowledge--have sided with the satellite industry's position, arguing that it's unfair to punish satellite operators with new, higher taxes to make up for franchise fees that are effectively like "rent" payments for cable operators.

The National Taxpayers Union acknowledges that franchise fees could be considered a tax if they're higher than is necessary to cover "actual and legitimate expenses" that a state incurs when a cable company installs its infrastructure--which the cable industry implied is the case. But for the most part, NTU says those fees should be considered the "cost of doing business," not taxes. It's not as though satellite companies don't have "rent"-like costs, too, in the form of preparing, launching, and maintaining their airborne dishes, NTU argues.

Despite NTU's support for the bill, director of government affairs Kristina Rasmussen told politicians that her group was concerned that states could exploit the bill as a way to raise taxes for all consumers. Rasmussen said NTU would "welcome" language clarifying that states can't do that.

Rep. Ric Keller (R-Fla.) raised similar concerns and suggested he would push for changes to the bill that make such clarifications.

The National Governors Association, the National Association of Counties, and various city associations oppose the bill, arguing the federal government has no right to trump their ability to establish tax policy as they see fit.

"We have a natural unbalance that was caused really under federal law," said David Quam, the NGA's head lobbyist. "Allowing state and local governments to create parity is the way to move this forward."

If you want Uncle Sam's help in bankrolling your household's switch to digital television before analog channels go dark next year, you can start filing your requests now.

As promised, the U.S. government on January 1 began accepting applications from American households for $40 coupons to defray the cost of a basic digital-to-analog converter box.

The gadgets, which are expected to cost between $50 and $70, are supposed to enable analog TVs to continue functioning when analog channels are evacuated on February 17, 2009, per Congress' orders. (About a dozen models have been cleared for use with the coupons so far.)

It doesn't matter how much money you make or how many digital TVs you already own. Every American household will be eligible to receive up to two of the coupons during a first phase, in which 22.5 million coupons are expected to be available. If that first wave is exhausted, Congress could authorize an additional $450 million, creating up to 11,250,000 more vouchers. That crop would be limited to households that certify that they rely on over-the-air TV.

To sign up for a coupon or two, you can head to DTV2009.gov or dial 888-DTV-2009 (888-388-2009). You can also apply by mail or fax. The government says it plans to accept applications until March 31, 2009, or until the coupons run out, whichever comes sooner.

As of Wednesday morning, the National Telecommunications and Information Administration had received 277,457 applications for 528,354 coupons, totaling more than $21 million, according to spokesman Todd Sedmak.

The agency plans to begin mailing the coupons on February 17. By that time, more than 14,000 stores nationwide, including those of eight major retailers--Best Buy, Circuit City, Kmart, RadioShack, Sam's Club, Sears, Target, Wal-Mart--expect to begin stocking the converter boxes, Sedmak said. Update 3:55 p.m. PST:The vouchers are programmed to expire 90 days after their issuance.

The NTIA, which is running the coupon program, has said it's confident that the vouchers will not run out, as it has estimated the demand at 10 million to 26 million coupons. Some Democrats in Congress, however, have called for making more coupons available, arguing that some 70 million television sets are expected to need converter boxes to continue functioning.

Most American TV watchers are not expected to need new equipment.

If you already have a TV, DVD player or other peripheral device equipped with a digital tuner, you're good to go. (Nearly all new televisions purchased after March 2007, for instance, should include a built-in digital tuner, under federal regulations.) Subscribers of satellite, standard digital cable, and Internet Protocol television, or IPTV, services also aren't expected to have to make any changes. In a nutshell, only people who rely solely on free, over-the-air broadcasts will need to make adjustments.

If you're still not sure whether you need an upgrade, the NTIA has posted a quiz designed to help you figure that out. And for more information about the switch, check out our most recent FAQ.