Broadcasters Not Counting on ATSC 3.0 Getting Into Phones

Broadcasters aren't sure precisely what the most profitable application for ATSC 3.0 will be, but the financial viability of the new standard isn't dependent on getting the tech into phone handsets, said industry officials from Fox, Nexstar and Tegna at the 2019 Next Gen TV Conference Thursday. Inclusion in mobile phones “would be nice to have, but none of us were counting on that when we made the investment,” said Tegna Senior Vice President-Strategy Ed Busby. NAB President Gordon Smith at the 2019 NAB Show expressed concern about smartphone makers including 3.0 tech (see 1904080066).

Manufacturers' integrating 3.0 tech into handsets could “create certain opportunities” but isn't required to make the new standard economically viable, said Nexstar Chief Technology Officer Brett Jenkins in response to our question. If other applications are successful using 3.0, it could drive interest from carriers, said Fox Executive Vice President-Engineering, Operations and Technology Richard Friedel.

Though there appear to be opportunities for stations to use the format to profit from the data requirements of connected cars and smart cities, panelists repeatedly said the most profitable applications of the technology likely haven't been thought of. ATSC's new president, Madeleine Noland, compared the new standard to a “faith-based initiative.” Broadcasters need to collaborate to find the technology's best use, many said. “We need to do a bit of exploring together,” said NBCUniversal Senior Vice President Technology Standards and Policy Glenn Reitmeier.

The standard “is a giant engine, waiting for applications to drive it,” said Enensys Market Director-America Richard Lhermitte. Probable revenue streams for broadcasters from 3.0 are likely to involve its potential as a “data pipe,” said Gaian Solutions Vice President-Product Management Chandra Koduri. “Data consumption is rising,” said SpectraRep Chief Operating Officer John McCoskey. The precise nature of the best applications to take advantage of that is “something we are all struggling with,” he said.

Research on consumer reaction to 3.0 showed an interest in the combination of features it offers and a willingness to pay more for them, said Magid Research Qualitative Analyst Nicole Meighan. Magid did consumer research on the standard that included focus groups, and found 91 percent of consumers in the study said they were interested or very interested in 3.0, while 80 percent expressed interest in buying such devices. The most popular features for the test groups were the expanded audio and video options 3.0 offers, along with a channel guide that offers broadcast channels alongside streaming options, Meighan said. CTA also discussed research at the event (see 1905300024).