NEXT GEN TV TRANSITION Report: ATSC 3.0 to Drive New Services, Revenues for TV Stations
The investments that large- and medium-market TV stations make in Next Gen TV using the ATSC 3.0 standard can be recouped within three years, according to a new study of the commercial television broadcasting business by BIA/Kelsey.
“The Business Case for ATSC 3.0” examines Next Gen TV 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.
According to the report, at the core of broadcasters’ ATSC 3.0 expectations is the ability to offer a new Internet Protocol platform to better satisfy the changing needs of consumers and advertisers. BIA/Kelsey says ATSC 3.0 business objectives for the broadcasting industry include:
- Maintaining or increasing viewership by offering superior service to their viewing audience, including the delivery of a higher quality experience, more programming options, and ongoing innovation to accommodate abrupt changing viewing patterns;
- Raising advertising revenue through increased viewership, better ad targeting, dramatically expanded and more accurate viewership tracking, and a capability to better integrate multiplatform campaigns; and
- Growing non-advertising revenue through the development of new IP-based broadcasting and non-broadcasting business models as the business of television broadcasting morphs into a broader content distribution service.
“ATSC 3.0 will change the business of broadcasting into a next-generation wireless communications business. This new technology will give broadcasters the ability to pursue multiple new business models, which will significantly diversify their current revenue mix,” said Mark Fratrik, BIA/Kelsey Senior VP and chief economist.