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The successful transition to digital television depends on several factors. For one thing, broadcasters, satellite providers, and cable companies must upgrade their equipment to transmit DTV signals. In addition, consumers must upgrade their video screens to accept and display DTV images. Unfortunately, this is a chicken-and-egg problem: content providers are reluctant to invest in the upgrade until a significant number of homes have DTV reception, and consumers are unwilling to spend extra money on a digital television until there is a significant amount of programming to watch on it.

The past year has been a boom time for the home theater industry, with business exploding at all price points. From January to May of 2002, DVD-based home theater sales grew by 988 percent during the past year, according to a study by NPD Techworld. One huge growth area has been so-called "home-theater-in-a-box" (HTiB) systems, typically a package with disc player, surround sound receiver, five speakers and powered subwoofer---typically priced at under $1000. Such systems are intended for use with Dolby Digital 5.1 or DTS films.

Live sports broadcasts are one of the driving forces for high definition television. On September 5, Samsung Electronics, Sears Roebuck, and CBS Television announced a partnership that will significantly boost public exposure to the format by expanding HD coverage of college football and basketball.

July 2002 wasn't a great month for electronics retailers, but it sure was for some manufacturers who supply them.