A coalition of twelve local broadcasting station groups, including stations from NBCU, Fox, and ION Television, have formed a consortium to offer television content via mobile devices. The group represents 173 stations and collectively reaches 150 million people - an appealing target for advertisers. Unfortunately, it has not put forth clear cut advertising strategies yet.
Speaking to Broadcasting Cable, Cox Media Group President Sandy Schwartz said the venture "will clearly have advertising on it. And I think it will be a network and have important local information including emergency information."
Another hint is provided by Jack Abernethy CEO of Fox TV Stations (via Unthinkable), who says that the "natural return path for advertising is the cellular network and for that this group needs a sign in from at least one major cellular network.
"But we would expect to see devices launched next and put into the market cheaply, and then some level of cellular subsidy being attached to them in return for perhaps a revenue share on advertising in deals cut later this year."
Moving Forward
The other nine station groups include Belo, Cox Media Group, EW Scripps, Gannett Broadcasting, Hearst Television, Media General, the Meredith Corporation, Post-Newsweek Stations and Raycom Media. The group has formed a standalone venture, Pearl Mobile DTV Company to represent them in the mobile TV initiative, writes The New York Times.
TV stations in Washington, DC, will begin broadcasting a signal that will allow a new class of mobile devices to show the stations’ programming next month. The move is meant to showcase mobile DTV capabilities, according to Mediaweek.
Other markets expected to unveil mobile DTV include Los Angeles, Seattle, Chicago and Atlanta.
Spectrum Disagreement
Rather than use the internet to provide programming, the group plans to aggregate unused spectrum freed up after the DTV switch. The move comes as the question of how broadcasters are using their spectrum has come under examination at the FCC.
The Commission wants broadcasters to return unused spectrum which could then be auctioned off to mobile carriers to help unclog wireless networks, but broadcasters see spectrum as a way to develop new revenue streams and are unwilling to give it up. Pearl Mobile DTV Company says it is designed to "complement" the FCC’s National Broadband Initiative by "giving consumers mobile access to video content while reducing congestion of the nation’s wireless broadband infrastructure."
Additionally, Pearl adds, the service's mobile content network will have the capacity to deliver local and national time-sensitive emergency information to citizens across the U.S.
