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Today marks the end of analog TV and the transition to a fully-digital service. Most of the media attention has been on the bad news.
Despite some two billion dollars spent on educating and preparing consumers, still, nearly three million American homes will lose service. But there's a great silver lining that's getting lost in the shuffle.
The end of analog should actually make TV content more accessible. The bandwidth that's being freed up will be used for new content distribution. Now, high-def live TV content will be able to be compressed and sent to mobile devices, not just cell phones and laptops, but also taxis and the back seat of your car.
Qualcomm [QCOM
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] is one of many companies hoping to cash in on this much-anticipated transition. The company, which specializes in wireless products, spent more than $500 million to buy newly-freed up bandwidth.
Starting this weekend Qualcomm's FLO TV service, which delivers live TV to mobile devices, will be able to make use of that bandwidth, expanding its service in the cities it's already available, and rolling out to 39 new cities.
Meanwhile the telcos are also looking to make use of a year-old investment. AT&T[T
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] and Verizon Wireless, co-owned by Verizon Communications[VZ
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] and Vodaphone Group [VOD
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] together spent more than $15 billion for access to new airwaves to enable the launch of next-generation high speed wireless.
The news on the advertising market could not be more grim: US ad spending fell 14 percent in the first quarter. But one tiny part of the ad market, the $60 interactive TV advertising business, is hoping that the end of analog could give them a boost.
Companies like Brightline, which distribute interactive, targeted TV ads through cable, satellite, and telecom-enabled TV are hoping that new subscribers to these services will encourage more marketers to spend on interactive ads.
Greater accountability and narrow targeting could give this tiny niche a boost. With bad news for the greater industry and the emphasis on the sliver of households left behind in the digital transition, why not find the silver lining!
Questions? Comments?
Data is a real-time snapshot *Data is delayed at least 15 minutes