One of the important techniques used for three dimensional television (3DTV) is holography. In holographic 3DTV, spatial light modulators (SLM) are used as the display device. SLMs that provide the most limited modulation are the binary SLMs, since only two different values can be assigned to their pixels. An important signal processing problem arising here is the determination of the binary signal to be written on the SLM among the possible ones such that the desired light field is generated to the best extent. Many of the proposed methods do not produce satisfactory results in terms of error rate, computational performance or light efficiency. We propose an optical setup to be placed in front of the binary SLM and the associated signal processing algorithm. The proposed system uses a 4-f setup and a periodic mask is placed to the Fourier plane. As a result, the binary SLM is convolved with a series of regularly spaced impulse functions and we get a new SLM which is smaller in pixel count compared to binary SLM but which can provide 16-bit full complex modulation. It becomes easier to generate the desired light field with this new SLM. Also, the required computations are carried out in a fast manner to enable real-time operation. ©2010 IEEE.