The shift to NextGen TV (ATSC 3.0) in the US is prompting broadcasters to explore diverse revenue streams beyond traditional advertising. The National Association of Broadcasters aims to sunset ATSC 1.0 by 2030, driving the adoption of the new standard. John Hane, president and CEO of BitPath, compares this transition to previous broadcast upgrades, noting that while consumers may not immediately see the full difference, the superior quality, especially in areas like HDR sports broadcasting, is undeniable. “We had the HD transition. We had the analog to digital. It’s very similar to that,” he said. “Yes, it is a lot harder initially for the consumer to tell the difference. But it’s very obvious when they see sports in HDR versus not. On NBC primetime, are they gonna know the difference? Probably not. But there are instances where it’s really easy to tell.”
Targeted advertising is a key opportunity presented by NextGen TV’s IP-based architecture. Mary Crebassa, VP of Major Accounts at LTN, highlights the potential for new business models: “NextGen TV enables TV stations to explore new business models powered by linear, addressable advertising and interactive content delivery,” she said. “A viewer seeing an addressable ad can also be served an interactive overlay showing sales or offers specific to the nearest store.” This personalization could significantly increase ad values. Rob Folliard of Gray Media emphasizes the need for digital-style CPMs: “We need to get digital-style CPMs, where we can charge higher CPMs because we’re delivering a better audience for our advertisers that is more attuned to the particular program and the particular viewers that are watching it,” he stated. Crebassa also stresses the importance of broadcasters upgrading their infrastructure for dynamic ad insertion (DAI).
Anne Schelle of Pearl TV highlights the system's compatibility with existing digital advertising standards: “That’s the beauty of this platform being IP based,” she said. “The platform can enable it… it’s more server-side based.” The joint venture EdgeBeam Wireless, formed by E.W. Scripps Company, Gray Media, Nexstar Media Group, and Sinclair, aims to leverage ATSC 3.0 for data services. Their internal estimates project substantial markets for automotive connectivity ($3.7 billion annually), content delivery network services ($3.65 billion annually), and enhanced GPS services ($220 million annually). Nexstar’s Perry Sook calls the transmission of high-speed data “a new way forward for the broadcast industry,” a sentiment echoed by Sinclair’s Chris Ripley who labels it a “groundbreaking development.”
Datacasting offers another revenue stream, potentially monetizing excess spectrum for services like CDN offloading and software updates. Steve Edwards of Rohde & Schwarz points to the established market and growing demand for connected devices. Crebassa agrees, highlighting the opportunity to capitalize on this growth. BitPath is exploring automotive connectivity and positioning services, with Hane emphasizing the Broadcast Positioning System (BPS) as a potential GPS backup solution. He also notes the high-quality location services possible with ATSC 3.0: “We can provide a quality location service equal to or better than the location service used by surveyors in construction, by precision agriculture, by utility monitoring, we can provide the very, very highest quality precision location information to everybody all the time for a trivial cost,” he said. The improved efficiency of ATSC 3.0 allows for increased channel capacity, potentially doubling revenue from existing assets, as noted by Crebassa.
The transition also opens doors for subscription and on-demand offerings, enabling broadcasters to compete with streaming services. Hane observes the challenges faced by broadcasters in a crowded streaming market, while Crebassa notes the exploration of subscription-based models for popular on-demand content. NextGen TV’s interactivity features, such as program restart, further enhance competitiveness. Folliard highlights NBC’s implementation of “start over” for the Olympics and plans for its expansion to local news. Enhanced emergency alerting, through government partnerships and sponsorships, represents another opportunity. Ed Czarnecki of Digital Alert Systems describes the potential for self-sustaining models through advertising and underwriting. Edwards highlights the benefits for public broadcasters, enabling new funding avenues through educational programming, telehealth, and emergency alerting. Customized local alerts could also lead to government funding or sponsorship opportunities.
As NextGen TV deployment continues, the viability of these new revenue streams beyond traditional linear television advertising will be determined through market testing.