ATSC 3.0 Rollout Good Omen for TV Broadcasting's Future, Say Officials

Broadcasters see the progress of the ATSC 3.0 rollout as one of several promising signs for the future of broadcast TV, despite the difficulties of the COVID-19 pandemic, said industry officials at the virtual NAB Show New York event Thursday. COVID-19 is “a double-edged sword” because the increase in TV and over-the-top viewing brought by the pandemic plays to 3.0 strengths, said John Taylor, LG Electronics senior vice president-public affairs and communications.

The 3.0 rollout and transition are "going very well,” said E.W. Scripps CEO Adam Symson. He characterized Scripps’ proposed buy of Ion as an endorsement of the future of over-the-air TV. “We were willing to make a significant expansion in that direction,” he said. The industry “solved the first part of the chicken and egg problem” with the transition of stations, said Sinclair CEO Chris Ripley. As for the egg, Ripley said 3.0 TVs already are available, with more expected for the holiday season, and prototype smartphones incorporating 3.0 chips on the way. Nexstar Chief Financial Officer Tom Carter said he hopes for increasing consumer interest in 3.0 TVs in 2023 and 2024.

Ripley said he hopes smartphone OEMs will see that devices that can use 3.0 are in the interests of consumers and can provide connectivity to lower-income users, he said. If 3.0 can provide connectivity to underserved communities, broadcasters could benefit from a planned infrastructure bill that includes funding for broadband deployment, said Vertical Bridge CEO Alex Gillman. Ripley said 3.0 offerings will eventually mix internet and broadcast services through a Netflix-like interface. “The consumer doesn’t know and isn’t going to care” which medium delivered the content on the screen, Symson said.

Several broadcast CFOs said they also see the rise of sports betting as a bright sign for the future of broadcasting. “We’ve seen sports betting pick up,” said Fox Television Stations CFO Mike Nelson. ATSC 3.0 could play into that by allowing apps that include interactive betting, said Tegna CFO Victoria Harker.

Next year will confront broadcasters with budget challenges because the pandemic will so drastically influence data from 2020, said Nexstar's Carter. Nexstar’s stock price by March 23 had dropped by more than 60%, he said. Budget shortfalls next year could be eased because most broadcasters drastically reduced expenses during the health crisis, he said. Broadcasters also won’t need as much real estate as they once did, he said. Harker agreed but said recovery speed has been market-specific. Advertising is coming back, the CFOs said, but in only some categories.