A digital camera system and method that automatically maximizes television viewing area when a television is used to view images stored in or transferred from a digital camera. A test signal or image comprising a beacon is output from the digital camera and is displayed on a television screen. A user points the camera at the television. Firmware that runs on the digital camera moves the test signal and beacon horizontally and vertically towards respective edges of the television screen until the beacon is lost at each edge, and determines or calculates how much viewing area is available on the television screen. The autocalibration firmware then automatically adjusts the size of images sent from the digital camera to the television to maximize the viewing area on the television while minimizing cropping or clipping of the images.