The NAB study assumes in its base case that a single mobile digital television standard will emerge by February 2009, 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.

Whether mobile television develops as an ad-supported business, a subscription business, or a combination of both, the OMVC agrees strongly with the main conclusions of the NAB study, regarding the tremendous potential value offered by mobile digital television, as well as the costs to the industry from a delay in establishing a standard. Furthermore, the OMVC also believes a delay in the mobile digital television standardization process may harm the potential benefit to broadcasters by far more than the $200 million per month estimated by the NAB.

OMVC Chairman Brandon Burgess said, “The NAB study validates the belief among OMVC members that mobile digital television represents an enormous opportunity for broadcasters. We believe that the $9.1 billion valuation of advertising-supported services represents only one component of the total potential, and we will work assiduously with other broadcasters, device makers, content companies, and service operators, to ensure the full potential of mobile digital television is fulfilled. We also understand the costs of a delay in agreeing upon a standard, and believe that a delay beyond February 2009 in launching services can cause irreparable harm to the mobile broadcast business.”

The OMVC has committed to contribute its resources and those of its members to facilitate and accelerate the development of a mobile television standard, and the launch of mobile television services. The OMVC will be conducting technical trials and consumer trials in 2008 to prepare for a launch of services in February 2009.

About The Open Mobile Video Coalition

The Open Mobile Video Coalition is a voluntary association of television broadcasters whose mission is to accelerate the development of mobile digital video in the United States. The OMVC is composed of twenty members that own and operate over 450 commercial television stations, as well as the Association of Public Television Stations, which represents an additional 360 public television stations. Membership in the OMVC is open to all U.S.-based television broadcasters. Members are committed to fostering open competition in the development of products and services related to television.