NIST GCR 03-859
Economic Impact of the Advanced Technology Program's HDTV Joint Venture

Abstract

In 1995, the Advanced Technology Program (ATP) co-funded a high-definition television (HDTV) joint venture (JV) project. Sarnoff Corporation, a research and development firm with extensive experience in television technology, assembled a unique nine-firm JV team and led that team to an ATP award to investigate new approaches to creating and operating digital studios. Technological innovations from the project reduced the cost of the conversion to digital television (DTV) broadcasting for most television stations and quickened the introduction of new digital studio technologies.

The JV successfully developed new technologies for digital television broadcasting, particularly a system for processing compressed digital television signals and a new technology that enables more efficient operation of digital television transmitters. These technologies were subsequently commercialized by their developers and have entered into service at television stations around the country. In addition, the JV developed methodologies and new approaches to creating and organizing digital studios that have impacted global broadcasting research and development. Two key outcomes include the AgileVision system, an integrated video server and compressed bit-stream switcher for broadcast operations, and digital adaptive precorrection (DAP), a technology that prevents digital broadcast signals from bleeding over into adjacent channels.

The study estimates the following measures of performance of the combined public and private investment:

• Net present value (NPV) of net benefits (1995 base year and real 2002 dollars): $126 million to $205 million;
• Social rate of return: 24.9 to 28.6 percent;
• Benefit-to-cost ratio: 3.5 to 5.0.

The analysis covers the period from the original project start date in 1995 through 10 years into the future (2013). The measures reflect the estimated benefits to industry users of the ATP-funded technologies and to some JV members relative to ATP and industry research and development costs.

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Date created: July 12, 2004
Last updated: July 13, 2004