Article

Datacasting - the next frontier for connectivity

Federally-mandated rules are changing the way television stations broadcast their signals, opening new revenue streams through datacasting. The technology could be a connectivity boom for kiosk operators.

April 8, 2002 by

The revolution that's coming to the television industry may signal a golden opportunity for kiosk providers seeking to build rich data transmissions into their kiosk projects.

By May 2002, television broadcasters are required by the Federal Communications Commission to transmit a Digital Television (DTV) signal they can use to carry High Definition television (HDTV), which provides a clearer, digital image to those with the right reception equipment. Many broadcasters are already experimenting with the technology, and have discovered that with digital broadcasting, excess broadband exists to carry large data files, including multimedia, graphics, audio and video, into homes or other locations, such as kiosks.

For broadcasters, datacasting could bring new revenues from a variety of sources, including kiosk operators. For the kiosk operator, it could become the wireless alternative for locations that are difficult to reach with a wire for connectivity.

Considering the cost of setting up digital TV in homes, it's unlikely that mass numbers of individuals will tune in to HDTV, at least in the beginning. At the low end, the price today for receiving equipment runs around $3,000. The number of programs available in HDTV is likely to be limited as well, due to the cost of new production equipment such as cameras, recorders and editors. But the federal government has mandated that station owners upgrade to HDTV, so many are looking at their business models for other ways to bring in revenue using the excess bandwidth. Kiosk applications may become a key consideration.

Broadcasting model

In the current business model for television broadcasting, stations transmit one program per channel at a time. Stations depend on advertising for revenue, and establish rates based on the number of people tuning in to the single program.

The new technology opens up the possibility of other revenue streams for stations, according to Sam Matheny, Vice President/General Manager, DTV-Plus, the datacasting arm of WRAL-TV, Raleigh, N.C. "DTV is not an either-or situation. Depending on demand, SDTV (standard definition) and HDTV can both be transmitted."

Matheny said that stations will be capable of carrying multiple DTV programs, so they must look beyond the traditional `television program' paradigm. When the broadcast signal is viewed simply as a digital data stream, many uses become possible: Simultaneous broadcast of multiple SDTV programs (entertainment, business-to-business, educational, etc.); enhancement to program advertisements, click-through style commercial messages in which viewers "drill down" into ads to learn more about products/services being offered; coupons that accompany ads or directions to places of business. DTV makes possible delivery of specific content for kiosk networks, including CD-size files of audio, video and graphics, Matheny said.

Jonathan Schembor, Director, Custom Solutions, Triveni Digital said potential datacasting applications could be regionally focused and flexible. Princeton, N.J.-based Triveni's products include hardware and software for broadcasting and receiving data and data-enhanced digital television. Schembor said that if kiosk locations are difficult to reach with cable, they're prime candidates for datacasting. Even when a conventional network exists, he said, a rooftop antenna can bring in content that could be distributed on a conventional network.

Applications galore

A tourist kiosk, Schembor said, could be used to present video clips of area destinations, live shows or films playing at local theaters. Sports events and information about arenas and other area venues could also be available. Datacast information delivery to kiosks increases the functionality of these systems. Even a sign, an LED or a plasma display image in a public location or at the POP becomes technically feasible, despite the bandwidth demands of large data files. A static print graphic, such as a poster, could be replaced by an electronic display that is updated through a company's server based marketing communications. Any examples, though, of applications for DTV bandwidth require looking beyond the typical business model.

DTV-Plus's Matheny notes that broadcasters are currently trying to determine exactly what is the "right strategy" for using the technology. Combining datacasting with traditional broadcasting is one possible approach.

He said a viewer watching WRAL-TV news might see a little bug come onscreen and ask `If you want more information about this particular story, click here.' The viewer is then taken to WRAL-TV online, and has the option of drilling down deeper than what's been covered on the broadcast. How does the business model accommodate this enhanced functionality? What will be valuable to advertisers, and what options will they pay for?

Another approach is to market datacasting independent of traditional broadcasting altogether. Matheny envisions a real estate kiosk in an area mall that would show photos of homes for sale through a kiosk using datacasting.

The homebuilding industry is anxious to explore the possibilities. Wilkinson Builders of Landenberg, Pa., for example, emails digital photographs to homebuyers as their home is built, so the buyer can monitor progress of new construction. Similar digital pictures of sample homes or broadband video and 360°, iPix type image files could also be transmitted to kiosks in public areas or regional offices.

Large file downloads, such as film trailers, are possible via datacast to systems like the ObjectSoft FastTakeTM video rental store kiosk.

"Datacasting is certainly a goal for FastTakeTM, which we will implement just as soon as broadband becomes more widely available in retail locations throughout the 32 states where we have kiosks," said ObjectSoft CEO David Sarna.

Cost concern

What will this bandwidth cost, though? How does datacasting compare to satellite or more typical means of transmitting a signal?

Triveni's Schembor said that the economics of datacasting haven't been determined. "What will broadcasters charge? Nobody knows, particularly due to competitive pressures, or government regulations," he said.

As for the hardware, equipment costs could be as low as $50, plus the price of an antenna. DTV cards, running about $300 per unit, are expected to fall as manufacturers build their production capabilities. DTV cards are already available from Hauppauge Computer Worksor under development from Triveni Digital, Broad Logic , and AccessDTV. Antennas are available at television and radio supply shops.

A handful of companies are exploring another concept, national datacasting networks. DTV-Plus, iBlast and Geocast  are attempting to establish relationship with station owners for that purpose. Wavexpress  offers a service to monitor and bill for "micro-transactions," to-the-penny use of bandwidth. While home consumers are targeted in the business models these companies describe, many questions remain about the feasibility of broadcasting digital signals in the extra bandwidth. Datacast delivery of broadband data, directly to kiosk networks, is becoming a real connectivity option for kiosks.

Contact the writer at ids@idisplay.com