02.07.2008 08:55 AM
OMVC concurs with NAB study; mobile digital TV service could generate billions

On Feb. 4, the Open Mobile Video Coalition (OMVC) endorsed the findings of an NAB study that identifies and quantifies potential advertising revenue that could be generated from mobile digital television services.

The alliance, which consists of more than 800 U.S. commercial and public broadcasters, also noted that the NAB study doesn’t include other possible revenue streams, including subscriptions and VOD services.

The NAB study assumed in its base case that a single mobile digital television standard will emerge by February 2009, but also examined scenarios in which the standardization process is delayed beyond 2009, and in which a standards war among multiple proponents occurs.

In the base case, advertising on mobile DTV would generate $2 billion in revenues, of which $1.1 billion would be accrued by broadcasters, providing the industry with an estimated $9.1 billion in incremental market value. But the study also concluded that each month of delay in determining a single standard would cost broadcasters about $50 million in revenues and more than $200 million in valuation. These figures include only cash flows from advertising-supported services and do not quantify the value of subscription-based services.

A delay in deployment beyond February 2009 “may harm the potential benefit to broadcasters by far more than the $200 million per month estimated by the NAB,” an OMVC statement said. Such a delay could “cause irreparable harm to the mobile broadcast business,” said OMVC chairman Brandon Burgess.

The OMVC will be conducting technical trials and consumer trials in 2008 to prepare for a launch of services in February 2009.

For more information, visit: www.openmobilevideo.com.

View the Open Mobile Video Coalition discussing mobile television opportunities at NAB2008.

Post New Comment
If you are already a member, or would like to receive email alerts as new comments are
made, please login or register.

Enter the code shown above:

(Note: If you cannot read the numbers in the above
image, reload the page to generate a new one.)

No Comments Found

Tuesday 03:07 PM
WMUR-TV Says FAA Drone Rules Preclude ENG
The FAA’s current rules and proposed ban on flight over people, requirement of visual line of sight and restriction on nighttime flying, effectively prohibit broadcasters from using UAS for newsgathering. ~ WMUR-TV General Manager Jeff Bartlett

Manor Marketing /   Tuesday 10:32 AM
Cobham takes on American Ninja Warrior
ignite strategic communications /   Tuesday 07:12 PM
Bexel Expands Inventory with Investment in Fujinon Cabrio Lenses

Featured Articles
Product News
Discover TV Technology