Multiprogramming change the television advertising market … – The Financial

The multiprogramming change the advertising market of broadcast television, which will have massive offers targeted ads by canals, while national television could go from 7-28 channels.

This will benefit companies that choose to adopt this technology, such as Grupo Televisa, TV Azteca and any dealers in one or both TV stations that tender the federal government through the Federal Telecommunications Institute (IFT), as the segment their programming , to sell targeted advertising for each type of client.

multiprogramming is defined as the distribution of more than one channel of programming on the same channel broadcast transmission, which means that broadcasters can accommodate more channels (in digital format) to transmit its content offering, where previously fit only one channel.

“The way in which the spectrum is structured (channeling) includes ‘slices’ 6 Megahertz (Mghtz); in the case of analog television only be a video signal with its associated audio and digital television those 6 Mghtz equivalent to a rate of 20 Megabits (Mbps) per second that allow broadcast multiple channels of digital programming, “said Alejandro Navarrete , head of the Radio Spectrum Unit of Federal Telecommunications Institute.

However, in the short term, analysts expect increased competition in the market, by the arrival of two new cadence of TV Open , will affect the business of the two major players in the sector. The impact will be even greater in the case of TV Azteca , because the content business represents about 85 percent of total revenues, while Televisa has opted to strengthen their telecommunications operations, which now account for 48.4 percent of consolidated turnover.

“The new television to be tender and enter into digital format and with the possibility of multiprogramming , while Televisa and TV Azteca have to request authorization from the IFT” said Andres Audiffred analyst Telecommunications Go for More Brokerage.

However, once they obtain authorization from the IFT to compress their signals, television stations currently account for 95 percent stake market may take advantage on cost of integrating specialized channels for specific consumers

. Brian Flores and Raul Ochoa, analysts Interactions Financial Group, explained that this trend is widely used in European markets, as in Spanish, where more than 40 channels of broadcast television .

With regard to consumers, experts said their outlook is positive, increasing the number of channels and distribute content on broadcast television, since 50 percent of the Mexican population depends on this media for information.

With the current technological capabilities, licensees may transmit up to 4 digital channels, depending on the quality of emissions (high definition or standard) instead of a single analog channel, using the same width radio spectrum band.

The regulator will consider the implications for competition in the sector before authorizing the multiprogramming for channels.