Television Multicasting Options--A Primer

Implications: The transition to a DTV environment is examined from the aspect of multicasting, the ability of a local television channel to broadcast several channels of "standard" definition TV.  Multicasting is critical to developing new audiences and revenue streams for terrestrial broadcasters.

Analysis: With the majority of the nation's 1760 TV stations already converted to digital, many stations are executing a multicast strategy, where the new digital environment allows stations to broadcast more than one channel of information.

This article summarizes the options that many stations are considering, whether from airing syndicated/rerun programming to local content to services offered by a network like NBC Weather Plus or ABC News Now.  It is a very timely and interesting discussion, and shows the many possibilities for broadcasters to become multicasters. 

Of course, there are some drawbacks.  These new channels are for the most part not required (unless negotiated) to be carried on cable or satellite systems, which means that the only people seeing these channels--at least initially--are those who have invested in a digital antennae.

Further, there is no guarantee that advertisers will follow, especially given what will be low initial audiences.  Which begs the question will these services make any money?  And how long will it take?

TV Broadcasters have a tremendous opportunity in the digital environment to develop new content (see my other posting about mobile DTV development) and monetize the new digital spectrum.  Companies should already be planning--if not committed to-- a strategy for implementation.