The Consumer Technology Association (CTA) CEO Gary Shapiro issued a strong rebuke to Pearl TV, dismissing claims that the CTA opposes ATSC 3.0 mandates due to conflicts of interest. He accused broadcasters of prioritizing government intervention over building consumer demand for NextGen TV.
Shapiro’s statement follows Pearl TV’s lobbying efforts at the Federal Communications Commission (FCC) for regulatory clarity regarding the ATSC 3.0 transition. He called Pearl TV’s assertion that smart TVs pose a competitive threat to broadcasting “outlandish” and denied that CTA members see NextGen TV as a business threat. “We oppose mandates because they hurt American consumers by forcing them to buy something they don’t want,” Shapiro said. “More, they diminish the product or feature by removing all reasons for retailers or manufacturers to market the feature or product as a feature a competitor may not have.”
The CTA represents major television manufacturers, having already produced 15 million ATSC 3.0-enabled televisions, according to Pearl TV. However, Shapiro contends that broadcasters haven't effectively marketed the technology. “The real issue: broadcasters haven’t bothered to sell ATSC 3.0,” Shapiro said. “Their half-hearted deployment of mostly redundant content is not luring consumers to value ATSC 3.0 despite manufacturers cooperating on the standard.”
He criticized broadcasters for seeking mandates instead of fostering demand, stating, “Instead of building demand, broadcasters want to force manufacturers to spend millions of dollars each year to bake it in—whether or not broadcasters actually ever transmit anything compelling or even try to invest in marketing using their free spectrum. That’s not innovation, it’s rent-seeking.” Shapiro questioned the lack of a significant marketing push for NextGen TV, asking where the “marketing blitz” and “killer apps” are to drive consumer adoption. He emphasized that manufacturers invested in ATSC 3.0 based on broadcasters' commitment to voluntary adoption.
Shapiro’s critique extends beyond NextGen TV, citing a pattern of broadcasters seeking government intervention when market adoption lags, referencing past attempts to mandate FM radio in phones and AM radio in cars. “This isn’t new. Broadcasters have spent years begging the government to prop up their declining business,” Shapiro said. “Declining demand isn’t market failure requiring government intervention – it’s the marketplace of consumers choosing better options.”
Pearl TV’s FCC filing stressed the need for regulatory certainty to encourage manufacturer investment in ATSC 3.0 devices, warning that delays could prolong the transition. Shapiro countered that mandating ATSC 3.0 would increase costs and ultimately consumer prices, contrasting this with the deflationary trend in television prices. “As our national policy is to fight inflation, TVs remain the bright spot deflationary product—so broadcasters want to raise their costs,” Shapiro said.
Shapiro also noted support from consumer advocacy groups and free-market organizations opposing technology mandates. He urged broadcasters to focus on creating valuable content and services rather than pursuing regulatory requirements. “If the broadcasters want ATSC 3.0 to succeed, they should stop wasting money on expensive lobbying campaigns for mandates and start creating content and services consumers value,” Shapiro said.
The dispute underscores the tension between broadcasters and technology manufacturers over NextGen TV adoption. While both support ATSC 3.0, they disagree on the necessity of government intervention. Pearl TV represents major broadcast groups, including Cox Media Group, Gray Media, Hearst Television, Nexstar Media Group, Scripps, Sinclair, and Tegna, reaching 99% of U.S. households. The National Association of Broadcasters petitioned the FCC for sunset dates for ATSC 1.0 transmissions.