NEXTGEN TV ATSC 3.0 Rollouts and Devices to Hit U.S. Markets in 2020

The broadcast industry in North America is getting ready to start the commercial launch of NEXTGEN TV powered by ATSC 3.0. TV makers including Sony, Samsung, and LG introduced 20 models of NEXTGEN TV at CES 2020 in January. Broadcasters are also committing the roll out of ATSC 3.0 in the top 40 markets in the United States in 2020. As the broadcasters plan to start commercial roll out, consumer receivers and set-top boxes are expected to enter the market following the TV sets integrated with ATSC 3.0 functionality in the near future.

ATSC 3.0 uses Ultra High Frequency (UHF) band and Orthogonal Frequency Division Multiplexing (OFDM), which is used in the latest Wi-Fi technology to provide better efficiency in transmitting the digital information. ATSC 3.0 offers bitrates up to 57 Mbps, a significant improvement from ATSC 1.0, which offers 19 Mbps bitrates. ATSC 3.0 features scalable High Efficiency Video Coding (HEVC) encoding and its support of Ultra HD 4K, higher frame rate (120 fps) and High Dynamic Range (HDR) is a major enhancement from the earlier ATSC 1.0 standard. The biggest advancement of ATSC 3.0 standard is its paring of broadcast and internet connectivity, which enables two-way data communication. The addition of an IP component opens a wide range of capabilities and enables broadcasters to compete with video streaming services.

Despite enhancements in the new standard, ATSC 3.0 is not backward compatible—i.e., ATSC 1.0 tuners integrated in today’s TV sets, converter boxes, or Digital Video Recorders (DVRs) will not receive ATSC 3.0 standard video. Consumers will, therefore, need to buy new hardware compatible with NEXTGEN TV. So far, 13 models of Samsung’s 8K TVs, 6 of LG’s OLED TVs, and Sony’s X900H range TV sets support ATSC 3.0 standard. Customer Premises Equipment (CPE) makers such as airWavz Solutions, BitRouter, and Zapperbox have expressed plans to launch ATSC 3.0 compatible set-top boxes and USB dongles, although further details about the devices have yet to be announced. As industry players work toward switching to new broadcast standards, more TV sets and hardware supporting ATSC 3.0 are expected to arrive in 2020.

Despite the initiatives by broadcasters, the upgrade to ATSC 3.0 is not mandated by the Federal Communications Commission (FCC), which could lead to a slow pace to upgrade the stations completely to the ATSC 3.0 standard. Hardware compatibility is also very limited at present, which will limit the adoption rate initially. The FCC is, therefore, requiring all broadcasters to support ATSC 1.0 standard programming until February 2023 in order to allow consumers time before making investment in new hardware. However, the benefits offered by ATSC 3.0 are likely to drive broadcasters to switch to the standard eventually. When the rollouts speed up, the ecosystem is expected to develop naturally with multiple choices of ATSC 3.0-compatible TV sets and devices in the market.

Return data path supported by the ATSC 3.0 standard creates a lot of opportunities for broadcasters. It enables broadcasters to track the stations consumers are watching, as well as their viewing habits, locations, etc. The tracking and analysis of user behavior also enables broadcasters to support well-informed recommendations to their customers. It also allows marketers to achieve more effective advertising, targeting narrower and more accurate audiences. The  IP capability of ATSC 3.0 opens endless opportunities to compete with Over-the-Top (OTT) services; broadcasters can add features such as synchronizing the broadcast signal to connected devices, cloud-based services such as cloud DVRs, Video on Demand (VoD), pay-per-view services to take advantage of the technology, and more. Improved signal penetration in ATSC 3.0 will also enable the reception of TV signals from mobile receivers, which can create additional revenue opportunity for broadcasters when smartphones are equipped with the right chipsets to receive the ATSC 3.0 signal.

While considering the monetizing opportunities offered by ATSC 3.0, broadcasters should also pay attention to concerns about content security. In addition to deploying traditional content security solutions, broadcasters may need to invest in Digital Radio Mondiales (DRMs) and newer technologies such as watermarking, piracy tracking, and monitoring solutions to detect and prevent content piracy threats. Return on Investment (ROI) cannot be guaranteed without investment in the latest content security technologies as the rollout picks up. In addition, broadcasters need efficient planning in upgrading signaling and transmission systems, the creation of additional revenue streams, and raising consumers’ awareness to use compatible receivers to maximize ROI in ATSC 3.0 rollouts.