The company also announced that they will participate in the NTIA DTV Converter Box Coupon Program to help people purchase digital converter boxes for their analog televisions. Coupon-eligible converter boxes will be available in Best Buy stores beginning in early 2008, in time with the phase-out of American terrestrial analog TV broadcasts, which will happen on Feb. 17, 20089.

"We are committed to helping people understand the digital television transition, and exiting the analog video business is one way we can help avoid confusion," said Mike Vitelli, senior vice president of electronics for Best Buy, in a statement.. "Customers can now be sure that any television they purchase at Best Buy will be fully compliant with the digital television transition. And for customers who aren't in the market for a new television, we can help you find the best solution to meet your needs."

The announcement, while dramatic, just makes good business sense. Even the digital television business itself is under heavy margin pressure, with manufacturers like Vizio and other low-cost brands pressuring the high-margin products sold at Best Buy. Vizio, which rode an order spurt to become the top U.S. vendor of DTVs in the second quarter, only sells its TVs at Wal-Mart and stores like Sam's Club. Analog TVs just don't make sense for the big-box retailers.

The announcement, incidentally, seems to mimic UK retailer PC World's statement earlier this year that it would pull floppy drives from store shelves. And, not to be outdone, Circuit City reminded customers that it will be educating consumers on the DTV transition too, via in-store signage, the company's Web site, and other programs.