They recently switched from analog to digital TV standard. You may have seen commercials on TV about how you need to get a box to get over the air signals.
Even before DTV, SDTV was digital. Makes no sense? At some point along the way from origin to your antenna, it was digitized (mpeg) sent over a fiber optic cable or satellite, then reconverted to analog and sent over the air. Additionally, the local stations can store those those reruns of Boston Legal in digital format (saves space, can be stored on hard disk or CD or DVD), converted to analog and broadcast after the late night news.
The thing about compression is that it's "lossy." This means that when you compress a picture and then decompress it, the picture is not exactly the same as the original. It's plenty good enough to fool the human eye though. If you compress a picture that's already been compressed and decompressed, the quality gets worse.
The idea of compression is to make the resulting stream (movie, show, whatever) smaller in digital format. Uncompressed movies on blu ray take up 50G on those disks. The same movie on DVD takes up 5G. That's why the picture on blu ray is so much better (no loss at all).
Compression works best if the background in the stream is mostly static. That is, the stream will compress really small. The compression algorithms basically look at the change in the picture on the screen from 1/60th of a second to the next - the less change, the more compression. So for sports, you have the camera panning across the crowd in the stands and the picture is almost completely different from 1/60th to the next. The compression is worse. They can force it to compress to a specific size, but it causes those artifacts you see.
Technically, the delta from frame to frame is done in 8x8 pixel blocks. Those 8x8 are what you see a lot when a digital picture is garbled.