Study: $2 Billion in New Revenue from Mobile DTV Adoption by 2012

WASHINGTON, February 1: Broadcasters could score an
additional $2 billion in annual revenue by 2012 from delivering content to
mobile and handheld devices, according to a study commissioned by the NAB
technology advocacy program known as FASTROAD (Flexible Advanced Services for
Television & Radio On All Devices).

The report, entitled Study of the Impact of Multiple
Systems for Mobile/Handheld Digital Television,
argues that the success of new mobile and handheld (M/H) DTV services in the
U.S. will be maximized if an industry-accepted Advanced Television Standards
Committee (ATSC) standard for M/H DTV is released by early 2009 and universally
adopted for M/H broadcasting. Furthermore, the report states that delaying
adoption will dramatically cut into revenue potential for both local and
network broadcasters.

The ATSC currently has an accelerated program under way to
standardize the system for M/H broadcasting.

If a M/H standard is rapidly adopted, the report projects an
estimated $2 billion in additional revenue by broadcasters that would be shared
between local stations, which would receive approximately $1.1 billion, and TV
networks and syndicators, which would reap around $900 million. The revenue
would derive from new advertising vehicles, monetizing over-the-air programming
on pay mobile platforms, and partnerships with cell phone and other mobile
delivery device providers. An alliance of numerous U.S. commercial and public
broadcasters, known as the Open Mobile Video Coalition, announced its
commitment to the development of mobile DTV in April 2007.

Experts from BIA Financial Network authored the report with
support from LECG, a global expert services firm.

—By Ned Berke