Digital televisions replaced older analog sets in mid-2009. The term "digital" refers to the way in which television signals are broadcast and the means by which the information is picked up and interpreted by your TV. Digital TV is able to take advantage of many technological innovations, providing a clear improvement over older analog TV.
Analog
Analog TVs pick up an analog signal, which means that the signal is analogous to that of the original recording. Though it is now obsolete, analog proved extremely durable for many decades.
Digital
Digital TV signals send their information as a series of identical pulses--read as a code of 1s and 0s by the TV--which can then be reconstituted to form the sound and image of the show.
Differences
Digital signals take up much less space on the broadband than analog, allowing them to carry more information (as well as freeing up broadband space for emergency services and similar needs).
Digital Tuners
Digital TVs need a digital tuner built into their system in order to receive digital signals. Older analog TVs can receive digital signals with the help of a converter box, available at most electronic stores for about $50.
High Def
Because digital signals can carry much more information, they can produce a much sharper and clearer image than analog signals (provided the digital TV has a screen capable of displaying high definition signals).
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