An in-depth review of the commercial television broadcasting business by research and consultancy firm BIA/Kelsey indicates that the investment large and medium market US TV stations are considering making in the ATSC 3.0 standard would be recouped within three years. The report, The Business Case for ATSC 3.0, examines ATSC from a business perspective by exploring the advantages this new standard will bring to the industry, in particular as it relates to ad revenue, television viewership and managing digital competition.
“ATSC 3.0 will change the business of broadcasting into a next generation wireless communications business,” said Mark Fratrik, chief economist and SVP, BIA/Kelsey. “This new technology will give broadcasters the ability to pursue multiple new business models which will significantly diversify their current revenue mix.”
At the core of broadcasters’ ATSC 3.0 expectations is the ability to offer a new Internet Protocol (IP) platform better to satisfy the changing needs of consumers and advertisers. The paper examines the business objectives for the television broadcasting industry and its members around the ATSC 3.0 migration, which include:
The report also covers concerns related to the ATSC 3.0 conversion, which include overall capital cost, providing uninterrupted service to their existing audience and determining the relevant time frame for transition.
“The biggest opportunities around the implementation of ATSC 3.0 are that it will give broadcasters a new opportunity to grow and address their major concerns like reversing recent local television station viewing trends,” explained Fratrik. “In our report, we present the business model for implementing ATSC 3.0 based upon our assumptions of the speed of introduction and acceptance by consumers, advertisers and other players in the media ecosystem