ATSC 3.0 | Harnessing new revenue streams

ATSC 3.0 is taking off, with sales for NEXTGEN TVs expected to reach 4.5 million in 2022 and 11 million in 2023, also boosted by the launch of a new line of ATSC 3.0 set-top boxes. ATSC 3.0 is an IP-native data pipe that functions in broadcast TV frequencies. It delivers 4K and HDR picture resolution, advanced Dolby audio, as well as personalized and interactive viewing experiences. Viewing experiences become more compelling through different camera angles, sports stats, and more relevant content. This new broadcast technology standard is the first significant overhaul following the launch of ATSC 1.0 in 1996 — and with an all-IP transmission system to open up numerous new data-driven use cases.

Alongside the significant enhancements in viewing experience, ATSC 3.0 brings further changes to linear television — it creates opportunities for TV stations and TV manufacturers to explore new business models in a highly regulated market. For example, research by BIA Advisory Services reveals new datacasting revenue from NEXTGEN TVs could reach 5 billion by 2027 and 10.7 billion in new revenue by 2030, accounting for 22% of the total local broadcasting revenues by 2030.

LTN Global recently moderated a panel of experts discussing the new revenue streams that ATSC 3.0 makes possible, what the future of television looks like, and what TV stations should be doing now to make sure they win in the new broadcasting landscape. Here are some key takeaways.

The critical revenue streams powered by ATSC 3.0

Geolocation services are one of the sectors where TV stations can harness the benefits of ATSC 3.0. These services refer to the infrastructure that enables mobile users to identify their current physical location in the world. Datacasting can power multiple use cases, including the Internet of Things (IoT), drones, asset and supply chain tracking, and connected cars, to name a few, delivering data accurately down to centimeters. The added benefit for TV stations is that this is already an established market with ample opportunity to make the most of growing demand — especially as the volume of connected devices is rising exponentially. In addition, ATSC 3.0-powered datacasting provides much-needed breathing room for wireless services providers who can leverage the existing broadcasting infrastructure to deploy geolocation services, reducing their CAPEX.

ATSC 3.0 enables the multicast of audio, video, and data. TV stations and TV manufacturers producing ATSC 3.0-enabled TV sets can drive new business models powered by interactive content delivery including customized ads and offers, opening up new revenue opportunities through linear, addressable advertising. Thanks to ATSC 3.0, TV stations can serve ads with interactive overlays. A viewer seeing an addressable ad can also be served an overlay showing sales or offers specific to the nearest store. With just one click, the consumer can access more details or personalized offers.

Finally, with ATSC 3.0, TV stations will have the ability to gain more channel capacity, enabling them to create and monetize twice as many channels across SD and HD — and thus bringing them to market faster, while delivering a richer depth of news and entertainment choices to viewers. Looking at live content monetization, ATSC 3.0 has a significant role to play. IP transport, an essential factor in realizing ATSC 3.0, enables TV stations to deliver live content with sub-second latency. Ultra-low latency is critical for live sports and sports betting. Any delays in delivering content to the consumer can make or break the viewing experience and damage the monetization opportunities.

Ultra-low latency is critical for live sports and sports betting, where any delays in delivering content to the consumer can make or break the viewing experience and damage the monetization opportunities.

Taking the next step with ATSC 3.0

TV stations transitioning to ATSC 3.0 need to have a clear market strategy from the outset that covers how the data and content distribution will happen, who will be the host, what the programming will look like, and everything in between. TV stations should also deliver enhanced content experiences to early adopters to ensure consumers moving to ATSC 3.0 see a tangible difference and maintain the momentum.

There are also considerations around the ATSC 3.0 rollout. NextGen TV is taking off in the US and it’s important to maintain the momentum by completing new market launches and achieving nationwide coverage.

Lastly, ATSC 3.0 regulation is critical for shaping the future of NextGen TV. Currently, the broadcasting industry is in the middle of streamlining the regulatory aspects of transitioning to ATSC 3.0. Once the industry has addressed the above issues and TV stations have completed their groundwork, the actual transition to ATSC 3.0 only takes a few hours to complete allowing media companies to quickly become part of the future of television.

Once the industry has addressed the... issues and TV stations have completed their groundwork, the actual transition to ATSC 3.0 only takes a few hours to complete allowing media companies to quickly become part of the future of television.

Strategize to win in the ATSC 3.0 era

ATSC 3.0 is shaking up the TV experience, bringing more channel capacity, signal efficiency, and better quality content for consumers. The broadcasting industry can redefine its future in addition to creating new business models for stakeholders, including media companies and TV manufacturers.

Powered by ATSC 3.0, datacasting stands at the intersection of broadcasting and the internet, defining how they impact our lives. More importantly, TV stations become leading players in driving numerous use cases that change how we work, get entertained, and experience the world. It is the right time to become part of the ATSC 3.0 revolution by getting started now.

TV stations become leading players in driving numerous use cases that change how we work, get entertained, and experience the world.