The U.S. Census Bureau's Statistical Abstract of the United States reports that the average American is projected to spend an astounding 1,704 hours (71 days) watching television in 2008. While the vast number of hours Americans dedicate to watching TV is, in part, a reflection our society's wealth, it is also a function of the number and variety of shows available. Indeed, the impending February 2009 standards transition from the current National Television System Committee's (NTSC) analog system to the Advance Television System Committee's (ATSC) digital system will allow broadcasters to further increase both the number and variety of shows. This change alone is likely to increase consumers' utility, and provide one source of an indirect network externality. The 2008 Census Bureau estimate, however, does not capture the fact that today's televisions are used for much more than watching broadcast television. Indeed, today's high-definition televisions (HDTVs) are multi-functional entertainment centers with adapters that enable compatibility with many other devices that (potentially) increase consumers' utility. The additional functionality of today's televisions include compatibility with videogame consoles, household PCs, video input and output devices (including high-definition devices), and input and output audio devices. The vast number of products that are compatible with today's televisions would accordingly influence consumers' value of television beyond a simple device used to watch traditional broadcast television. Hence, the market for HDTVs is likely to exhibit an indirect network externality beyond an increase in program variety. While several projection technologies exists to deliver HD signals to consumers homes – plasma, LCD and projection – in this paper we focus on the market for LCD televisions to cleanly identify network externalities arising from compatibility with the forthcoming ATSC digital standard and other devices. Accordingly, we collect price, image tuner and quality, and product compatibility characteristics from CNet's Shopper.com to estimate a hedonic pricing model for over 200 LCD televisions on 3 November 2007 and 27 August 2008. In following this methodology for estimating network effects, we build on the approaches of Gandal (1994, 1995) and Chakravarty, Doganand Tomlinson (2006).