[opendtv] Re: News: DIGITAL TV OPENS UP TWO-WAY OPPORTUNITIES

Craig Birkmaier wrote:

> Targeted advertising is going to be VERY important. But it will
> probably need a back channel to close the loop with the
> audience.

As always, I disagree on the "back channel." This would take away two of the 
biggest advantages of OTA broadcast: simplicity and scalability.

And as we saw with the RAI "interactive" channel, so far anyway, it does not 
depend on any such return channel. Instead, you tune to the subchannel, wait 
some, and then you get the "interactive" info stored in your STB. So 
interactivity stops at the STB. They will provide phone numbers or URLs, if you 
need real interactivity. Just move over to the telephone or PC and get 
interactive. (I'd like to know how successful that has proven, in the test 
markets.)

Others have commented on the economics. My only addition would be that the only 
way for such a scheme to pay for itself is for advertizers to pay a meaningful 
premium to broadcasters, for the privilege of having their ads directed. This 
could be done in a one-way broadcast, but only with a small number of ad 
options. And you don't need any form of IP encapsulation either, unless you 
want it for snob appeal.

With or without "back channel," the broadcasters would have to figure out how 
to get the new-design STBs or integrated receivers out to customers. It would 
take another FCC mandate. The NAB doesn't seem to have much clout with the CE 
vendors. And I would expect that the MVPDs would oppose any such NAB attempt 
strenuously, for instance, which in turn would make the broadcasters quickly 
back off.

Same objections to this would also exist in the MVPD nets, if more customers 
would resist having proprietary STBs installed in their homes. If customers 
don't resist, such boxes could be designed for the MVPDs, who will in turn take 
the additional ad revenue and charge the marginal extra cost of the boxes back 
to the customers, via the monthly fee. Will the customers be given the option, 
or will they be graced with these boxes no matter what?

Bert

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