NextGen TV Demystified

NextGen TV, otherwise known from an industry perspective as ATSC 3.0 (not ZERO!) is one of the most hyped topics in the emerging video space these days. This evolution of the broadcast TV standards is going to change the way broadcast TV is distributed and consumed. Well..yes and no as far as I can tell. Here's my take:

What is ATSC 3.0?

I think for the novice it's first important to understand the concept of Over-The-Air (OTA) TV before diving too deep into ATSC 3.0. OTA TV refers to high definition television station broadcasts in your local area. Most of these channels are network affiliates of larger national networks such as ABC, NBC, CBS, and Fox. However, depending on your location, it's not limited to these networks and can include smaller independent stations like PBS. The channels are distributed through broadcast towers and signals acquired through the FCC and many were part of original TV licenses back in the 1940s. For crystal clarity, these channels are what are typically known as your "local channels". As a user, you can get these channels for free using OTA TV via an HD antenna or paid for through your cable provider (i.e. Comcast), Satellite provider (i.e. DirectTV) or through a vMVPD like Sling or YouTube TV.

The Advanced Television System Committee (ATSC) is the standard body that manages the standards for digital television for mainly the above mentioned OTA broadcast network. ATSC 3.0 is the latest standard from this group, providing an upgrade path from 1.0, for how these OTA channels and network groups can leverage their licensed network to distribution their content and more. At it's highest level, ATSC 3.0 provides for higher quality and more interactivity. More on this below. Please note that this advancement does not impact popular cable channels/networks like ESPN, CNN, etc. because they are not broadcast networks/OTA/local channels..a huge distinction for the overall impact of the standard.

Key Benefits

There are some fantastic benefits to the 3.0 standard. Some are obvious and consistent with what you would expect but some are slightly more nuanced. Let me explain:

• Not surprisingly, better picture and sound quality is at the root of the upgrade path. The new standard allows for 4K UHD, high-dynamic range (HDR), wide color gamut (WCG), and high frame rates. Audio quality is increased using Dolby AC-4and allows for the ability to use Dolby Atmos. It's also upgradable to potential 8K resolutions.
• Theoretically as a OTA consumer, you should be able to receive more channels in high quality with the same antenna. So no need to upgrade your antenna.
• Advanced emergency alerts is part of the standard, including better geotargeting. This could be a huge benefit in case public officials needs to broadcast evacuation routes or other information to customers.
• Perhaps one of the biggest advancements of the new standard is the ability to enable connectivity with the users. Because the standard combines broadcast and IP protocols, broadcasters will be able to track your viewing habits and offer more targeted advertising as well as content to the users.
• Because of the attractiveness of the One to Many model and the ability to transmit large amounts of data (up to 25 Mbps of internet access), there is a broad amount of potential for ATSC 3.0 beyond the traditional or even connected TV. Mobile phones, cars, and other IoT devices are being explored as possible ways to leverage this so called Broadcast Internet. At the very least, if mobile devices and cars are embedded with a receiver, consumers could get immediate access to their local OTA channels. More on this in the Takeways section.

Availability

Here is a relatively up to date map of Where and When NextGen TV will be available:

As you can see, many of the major markets will be launching in 2020, thus representing a turning point for the standard.

A few things to know about availability and access though:

1. Broadcasters are required to simulcast using the ATSC 1.0 for a period of 5 years and it's a voluntary switch over. Therefore, it's unlikely that you will get the ATSC 3.0 feed from the broadcaster through your MVPD since they will need to update equipment to receive and broadcast the channels. While it's not a huge investment on their part, there is little incentive for them to make the switch immediately.
2. Based on the above, the best way to get your Next Gen TV feed will be through the OTA TV method. To do this, the good news is you will not need to upgrade your antenna, However, you will need to purchase an ATSC 3.0 compatible tuner.
3. You will not need the Internet access to receive the signal and you will not need a new TV or phone. However, TV's that are Next Gen TV compliant will be coming out later this year. As far as phones, it's possible that Android phones produced by Samsung, Sony, and LG could come out with compatible devices but there is alot ground to cover with the carriers before this could become a reality.

ATCS 3.0 vs. 5G

One of the more dynamic use cases and questions about ATSC 3.0 is how and if it will impact and interact with the upcoming 5G network rollouts. It's amazing how both of these major transformational network technology changes are essentially happening at the same time. It's also not the first time the one-to-many broadcast capabilities have been explore in the cellular world. There was LTE Broadcast and MediaFLO in the earlier part of the decade and neither got much traction. The timing is much different this time around so I'm a bit more optimistic. The questions is whether these technologies will compete or compliment each other. One thing is certain is that for NextGen TV to happen in mass in the US on cell phones, broadcaster will need to create incentives for the carriers to participate. Otherwise, it will be long rode for mass adoption in the wireless space.

Key Takeaways

Hopefully this article has given you a deeper perspective on exactly what ATSC 3.0 a.k.a. Next Gen TV is all about. I don't think it's something intuitively understood until digging a little deeper. Here are a few of my key takeaways on the space:

• Given the simulcast and hardware requirements as well current macro-economic conditions and even though many stations and channels will be launching this year, it's still extremely early to evaluate any kind of real impact on the market. It probably won't be until 2022 that we see some impacts.
• I believe there is a strong argument for a complimentary relationship between ATSC 3.0 and 5G rollouts. Especially for the idea of offloading streamed and live content from 5.0 and onto the Broadcast Internet. This seems like a logic first use case given the it's the strength of the Broadcasters.
• I'm intrigued by the automobile and interactivity use cases. For the auto, that's an areas that is still not completely owned by the wireless carriers. It's an area that could see significant innovation in terms of Live TV and could be a great use case for ATSC 3.0. From the interactivity perspective, the ads are obvious and how that opens things up for additional unique targeted ad campaigns, but I'm equally interested in how the broadcasters can take advantage of the new interactivity to create unique customer and UI experiences.

Thanks for indulging me in my learnings and hopefully you learned something too. Feel free to drop me your feedback.