BIA/Kelsey Predicts Transition to ATSC 3.0 Will Drive Significant Incremental Revenue for Large and Medium Market Stations in Three Years

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New BIA/Kelsey report examines the conversion to the ATSC 3.0 standard from a business perspective, explaining the effect on advertising revenue, television viewership and digital competition.

An in-depth review of the commercial television broadcasting business by BIA/Kelsey indicates that the investment large and medium market stations are considering making in the ATSC 3.0 standard would be recouped within three years. The new 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 to better 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:

1) 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 expected (and unexpected) abrupt and hard-to-predict changing viewing patterns;

2) 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

3) 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, many new service offerings will evolve.

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 Mark 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 and overall it's quite positive for the vast majority of local television stations."

Report Availability
More information about “The Business Case for ATSC 3.0," including how to purchase, is available at http://bit.ly/ATSCBIARPT. BIA/Kelsey content subscribers will receive the report this week.

About BIA/Kelsey

BIA/Kelsey (@BIAKelsey) combines data, analytics and insights to provide its clients with the information they need for grounded financial and strategic action. Since 1983, BIA/Kelsey has been a valuable resource for many of the leading companies in media and the financial and legal community serving media and telecom, as well as the FCC and other government agencies. Today, BIA/Kelsey offers a broad range of research, consulting services and conferences to traditional and new media companies. Learn more about BIA/Kelsey at http://www.biakelsey.com.

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Mackenzie Lovings
BIA/Kelsey
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