ATSC 3.0 is also being referred to as NextGen TV. I do find it amazing (and somewhat troubling) that there are those who have expressed that “it will never take off.” And I think it is because the “gradual” and “evolving” nature of what we call “television” now exists in a world where when a technology is introduced, there is an expectation that if it is not embraced and implemented immediately then that constitutes a failure.

Is there value in being able to receive live television to a mobile device—say, hyperlocal early warning systems, 4K, multiple angle choices, multiple languages in high fidelity, one-to-many broadcasts, interactivity and more? Of course, there is.

The One-to-Many Nature of NextGen Technology: Overcoming Content Delivery Challenges

One of the most vexing problems that occurs in the world of technology that content providers face depends upon the mechanism that is used to deliver content to the consumer. Generally speaking, in a one-to-one environment, when content is delivered to the consumer via a content delivery network (CDN), there is, of course, a cost. As the content provider experiences more users and viewers, there is a corresponding increase in cost. But with NextGen—by its very nature a one-to-many methodology—there is a marginal increase in cost when, say, 1,000 viewers become 1,000,000 viewers, just as over-the-air (OTA) television works today.

Understanding the Importance of Over-the-Air (OTA) Audience in the US

And let us not forget that there is, indeed, a considerable OTA audience in the U.S. According to a December 2022 study by Nielsen, where 15.3 percent of the 122.4 million homes use OTA for viewing content. That is more than 18 million households and, as importantly, many of these households depend upon OTA due to their location.

Advantages and Disadvantages of NextGen Technology Revealed at NAB 2023

At NAB 2023, there were many different examples of the capabilities of NextGen. One of the most welcome demonstrations was, as cited above, to hear multiple language audio tracks in high fidelity and in stereo and not be banished to the world of mono as has previously been the case.

The criticism, heretofore, has been that the U.S. station roll out has been slow and that NextGen compatible television set adoption has been slow. However, NextGen had already been rolled out in 66 Designated Market Areas (DMAs) by the end of 2022. That’s almost one-third of the 210 DMAs. And, as we experienced with HDTV sets, consumer prices tend to shift downward over time.

How NextGen Technology Benefits Local Broadcasters: Unlocking Opportunities

NextGen can also represent a major benefit to local broadcast stations. In late 2022, reports began surfacing from a U.S. national broadcast network that it was considering abandoning the 10 p.m. to 11 p.m. time slot and returning it to local broadcasters. Why? The economics of content creation costs versus a dwindling audience in that slot was the reason. Local broadcasters may have the opportunity to now program and sell advertisements in that time period.

NextGen Tools Empowering Local Broadcasters to Compete Effectively

At the same time, retransmission fees charged by the major networks to its affiliates have continued to rise and local broadcasters are faced with the question of how to increase revenues. How does NextGen fit into that scenario? Beyond the potential extra hour, NextGen offers local broadcasters some powerful new tools that the over-the-top (OTT) providers and multichannel video programming distributors (MVPDs) already have. Among these: interactivity, dynamic ad insertion, a mobile component and first-party data, which is information the broadcaster is able to acquire directly from the viewer. These four new additions are significant to the local broadcaster’s ability to effectively address similar functionality from competitors.

The Role of Next-Generation Technology in IP Transmission: Wireless Innovation

Perhaps the most interesting and evolving storyline to consider is that NextGen can also be thought of as a wireless IP transmission platform. And that means data sent over IP which, in turn, means that providing data transmission (data distribution) as a set of services is achievable. Thus, we now see various applications such as software updates for automotive at a fraction of the price per GB over other methods. Furthermore, while at NAB 2023, a major broadcaster announced that it was planning to offer a wireless internet service using ATSC 3.0.

Conclusion: The Impact of Gradual Progression in Content Generation and Consumption

In conclusion, while there are many other things that could be observed about NAB 2023, the “gradual” progression continues and will continue to be impactful in how content is generated, transformed and consumed.

Thomas Ohanian is a Director at Alvarez & Marsal and an Academy Award® and four-time Emmy® recipient for Scientific and Technical Invention.

The National Association of Broadcasters (NAB) is an annual conference and trade show that brings together professionals from the broadcast and media industries. The conference features keynote speeches, panel discussions, and exhibits showcasing the latest technology and trends in broadcasting. NAB provides a platform for industry leaders to network, exchange ideas, and learn about the latest developments in the field. Whether you are a broadcaster, content creator, technology provider, or a consulting firm like Alvarez & Marsal, NAB is the ultimate destination for anyone involved in the world of broadcasting (media & entertainment).