OMVC supports NAB Study on Mobile DTV ad revenue potential


The Open Mobile Video Coalition (OMVC), an alliance of over 800 U.S. commercial and public broadcasters committed to the development of mobile digital television, endorsed the results of a study conducted by the NAB which identifies and quantifies substantial potential ad revenues to be generated by mobile digital television services. Additionally, OMVC notes that the study does not include the impact of additional revenue streams from subscription and VOD services.

The NAB study assumes in its base case that a single mobile digital television standard will emerge by 2/09, but also examines 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 concludes that each month of delay in determining a single standard would cost broadcasters approximately 50 million in revenues and over 200 million in valuation.  These figures include only cash flows from advertising-supported services and do not quantify the value of subscription based services.