With all the attention these days to streaming services primarily delivered via broadband internet connectivity, it would be a mistake to ignore the importance of over-the-air (OTA) terrestrial broadcasting as a conduit used to deliver content to consumers. For some, it is a cost-cutting move, while for others, particularly in more rural areas or for viewing situations where there is limited or no broadband access with sufficient speed and reliability, OTA is a lifeline.
Indeed, according to statistics from a presentation this past weekend at the NAB show in Las Vegas, 20% of US households rely on OTA for their primary TV viewing, a 50% growth in the past two years. More than 25 million US TV households watch over-the-air TV every day. Even in the face of streaming and cable, that is still a sizeable audience.
Since the transition from analog to digital television was completed on June 12, 2009, OTA viewers have been using the original ATSC 1.0 system, and it has served us well. However, times and technologies have changed, and the fully IP-based ATSC 3.0 system has been marching forward with broadcasts, and the availability of TV sets with tuners for the new system began just about six years ago. At present, ATSC 3.0, or NextGen TV, as it is marketed to the viewing public, is now available to over 75% of the US TV Households, with more stations and markets continuing to add NextGen TV during the year.
With broadcasting at the heart of this, NAB was a great place to survey the landscape, and there was quite a bit to the story from there.
Sports are at the top of many viewers’ lists, and it fits nicely with NextGen. With NextGen, free, over-the-air broadcasts deliver higher resolution than standard ATSC 1.0 or many streaming services. The availability of 1080p rather than 720p or 1080i is important not only for the NBA, NHL, and MLB broadcasts now, but don’t forget World Cup that will be seen next month on Fox and Telemundo. Along with the resolution, NextGen TV can deliver HDR and immersive Dolby Atmos audio, either native or upscaled, where normal OTA cannot. Those items alone might be the closer for many on a set with a NextGen tuner.
Digging further into the NextGen tool kit, stations are gradually adding additional services such as “Play From The Beginning”, news, sports, and local information highlights, and hyper locally targeted weather. Not all stations have it, but it has already started with the NBC-owned station. I’ve used it here in Los Angeles, and it is not only free, but it is more than a match for what some streaming services deliver.
One thing that retailers might hear from enthusiast customers and clients is concern about content encryption being a barrier. The ATSC 3.0 Authority (A3SA) was at NAB to calm the waters with data showing that the vast majority of the 18.5 million NextGen TV sets and devices already sold, as well as those now in the market, are capable of decrypting protected NextGen content. It is also worth noting that not all NextGen stations use the encryption; where I live in Los Angeles, only two of the five NextGen signals carry it.
For those who are looking to get on the NextGen TV bandwagon, TCL’s new RM9L RGB-Mini LED and QM8L SQD sets, announced last week, will have NextGen TV tuners, as does the new TCL x11L SQD set. These sets join the nearly 40 models from Hisense, Panasonic, Samsung and Sony already equipped with the tuners.
As attractive as NextGen TV might be, not everyone wants to buy a new TV just for its benefits. Equally important, projectors or gaming-centric monitors rarely have a tuner at all. For those situations, the solution is a NextGen external tuner. Set-top tuners are now available from ADTH, Zapperbox, and Zinwell, with more to come this year from MyVelo and others. Notably and shown for the first time at the NextGen TV booth at NAB was a small, under $70 tuner dongle from ADTH that will bring NextGen stations to compatible Android TVs and certain streamers such as Fire TV (Gen.3) and onn TV 4K boxes, as well as compatible Android TV, Google TV and Fire TV models.
Equally important for those viewers lamenting the end of new DVR products from TiVo is Zapperbox’s new Quad Tuner model, which is not just capable of recording four programs at once, but it also works with the companion Zapperbox Mini models that enable viewers to access live or recorded content from the Quad Tuner anywhere in the home via the home network and an HDMI connection to the TV. Along with that, Zapperbox’s products are now compatible with Advanced HDR by Technicolor, which some NextGen TV broadcasts are using.
This is where you must take note of two key aspects of the rollout of NextGen TV in comparison to the digital transition from analog to ATSC 1.0. First, today’s political climate makes it almost a certainty that there will be no “tuner coupons” this time to help consumers buy set-top tuners. However, the industry is hard at work to have NextGen tuners in the market with retail pricing around $60 later this year. Those, along with more feature-rich models such as Zapperbox’s NextGen DVRs and modern indoor and outdoor antennae, will present a good consumer draw and profit opportunity for the retail community.
NAB also saw a continuation of the debate as to whether, and if so, when, broadcasters will have a mandatory sunset on existing ATSC 1.0 broadcasts. Some broadcasters and ownership groups submit that this will allow for more efficient spectrum use and enable new services such as broadband data delivery via NextGen. On the flip side, some groups are concerned that the end of ATSC 1.0 will disenfranchise all existing TV sets, as the penetration of NextGen-compatible sets by the 2028 sunset date may still be low. This key item is still in the discussion phase at the FCC, and it is something we’ll keep you posted on as things move forward.
A few other NextGen notes from NAB include the start of NextGen TV in India and Brazil. The enormous product volume opportunity that presents for set manufacturers has value for us in North America, as that huge scale-up will hopefully bring product costs down for us. Already shown first for sale in India, but perhaps eventually here, was an ATSC 3.0 tuner with a USB-C connection intended for phones and a phone with an onboard NextGen tuner module. Also discussed was the possibility of 5G as a spectrum carrier for NextGen TV content.
At the end of the day, there weren’t any major surprises around ATSC 3.0/Next Gen TV at NAB and perhaps that is a good thing. It’s here, maturing and growing. There is availability across most of the country, and encryption no longer requires an internet connection for most models, making it not the issue some thought it might be. Set-tops are offering more features, including HDR and multi-room.
The bottom line? To paraphrase Mark Twain, “Reports of over-the-air TV’s death are greatly exaggerated.” Along with increased interest, particularly due to sports, it isn’t just cord-cutters to whom this appeals. It’s everyone. TWICE will keep an eye on the continued progress of Next Gen TV. You should, too.
About the Author
Michael Heiss has rejoined TWICE with almost five decades of covering all aspects of the consumer and professional electronics industries. Currently an industry consultant on products and marketing, he has held executive positions at manufacturers, brands and service companies. He is a CEDIA Fellow and recipient of their Lifetime Achievement Award.
