BIA/Kelsey: Stations Should Get ATSC 3.0 Money Back Quickly

A new report says broadcasters should recoup money spent on the next-gen broadcast standard within three years

Large and medium market TV stations should be able to recoup investments made in the next-gen broadcast standard, ATSC 3.0, within three years, according to a report released Tuesday.

The BIA/Kelsey report, “The Business Case for ATSC 3.0,” finds the new IP-based standard will give broadcasters the ability to pursue new money-making possibilities, diversifying—and improving—their revenue flow.

Additionally, advertising revenue would be bolstered by the increased audience, more accurate viewer tracking and improved multiplatform campaigns that ATSC 3.0 is expected to usher in, it said.

"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," said BIA/Kelsey senior VP 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."

(Photo via Pictures of Money's FlickrImage taken on Sept. 17, 2015 and used per Creative Commons 2.0 license. The photo was cropped to fit 9x16 aspect ratio.)