It’s Time For Broadcasters To Pivot To NextGen TV - And Leave Retransmission Consent Behind

ProximityLocal
Written By Tim Hanlon

Trevini Digital via NewscastStudio

As the media landscape rapidly evolves, the regulatory frameworks governing the broadcast industry are long overdue for change. One of the most entrenched and outdated of these structures is the retransmission consent and must-carry regime, which gives broadcasters leverage over cable and satellite providers to carry their signals, in exchange for either fees or mandated free carriage. However, in today’s market — dominated by digital streaming, mobile video, and myriad on-demand platforms — this model is increasingly out of sync with modern viewer habits and fails to secure the long-term sustainability of local broadcasters.

It’s time for broadcasters to trade in these legacy protections for a more forward-looking mandate: universal adoption of ATSC 3.0, or "NextGen TV." This next-generation broadcast standard has the potential to deliver high-quality video, hyper-local content, mobile reception, and interactive features that could give local stations a real shot at reclaiming relevance in a fragmented media environment. By transitioning distribution from retrans/must-carry to more directly-delivered NextGen TV, broadcasters can future-proof the TV industry, deliver better value to viewers, and ensure solid solid business viability in an increasingly competitive market.

The Limits of Retransmission Consent in a Streaming-First World

The retransmission consent regime, established in the 1992 Cable Act, was designed to address a different era — one where cable providers held near-total control over the TV experience and where local stations’ presence on the cable lineup was essential to reaching households. But in 2024, consumers are far less tethered to cable or satellite subscriptions. With the rise of streaming platforms, digital video, and cord-cutting, viewers now have myriad ways to access content without ever tuning into a traditional broadcast or cable channel. In fact, fewer households than ever subscribe to pay TV, and even those who do are no longer reliant on a bundle to access local content, as viewers opt for stations’ news offerings via streaming apps and FAST channels, or even full signals via free (albeit clunky) OTA antenna signals.

The business of retrans has, over the years, become contentious and costly. The frequent, highly publicized disputes between broadcasters and pay TV providers are frustrating for viewers, who often find themselves caught in the middle, facing channel blackouts as broadcasters and cable companies battle over rates. Furthermore, the fees generated by these deals are hardly a sustainable solution for broadcasters in the long run; as cable subscriber numbers drop, so too will the revenue that broadcasters rely on to fund their operations. Clinging to retransmission consent only delays the inevitable — an industry-wide reckoning with the reality that pay TV is no longer the reliable subscription revenue linchpin it once was. For broadcasters to thrive, they must transition away from dependence on cable carriage — or other intermediaries, for that matter — and rebuild a business model that more directly addresses the needs and expectations of today’s viewers.

The Promise of ATSC 3.0: Future-Proofing Local Broadcast

This is where ATSC 3.0, the new NextGen TV standard, comes into play. ATSC 3.0 isn’t just another technical upgrade; it’s a transformative leap that enables broadcasters to offer a digital experience on par with streaming services. With higher-quality video, immersive audio, personalized content, and interactive capabilities, ATSC 3.0 can help local broadcasters reach viewers with the type of modern, high-definition, and on-demand experience they’ve come to expect from other platforms. Perhaps more significantly, ATSC 3.0 allows for targeted advertising, which could be a lifeline for local broadcasters looking to attract digital ad dollars that have, up until now, flowed more generously to social media and online platforms.

The adoption of ATSC 3.0 also holds tremendous value for public service. Its ability to reach mobile devices and deliver highly localized content means that local stations could play an invaluable role in emergency response, public safety, and community information. Imagine an alert system that could immediately notify mobile viewers of an incoming severe weather event, tailored to their specific location. In short, ATSC 3.0 would help local broadcasters provide essential services while also adapting to a digital, mobile-first world.

An Opportunity for Industry Renewal Through Regulatory Reform

Broadcasters should embrace ATSC 3.0, the NextGen TV standard, as the cornerstone of broadcasting’s future. In return, they should forgo retransmission consent and must-carry rules, while forcefully advocating for regulators to mandate a full transition to ATSC 3.0 rather than continuing with the current voluntary approach.

This shift would allow the industry to move beyond contentious battles with cable operators over carriage fees and instead focus on creating services that resonate with today’s audiences. By eliminating disruptive retransmission fee disputes, broadcasters could begin paving the way for a longer-term sustainable future — one more directly aligned with actual digital media trends. This transformation would free them from dependence on the fast-declining pay TV ecosystem, empowering them (preferably with outside expert technical partner support to speed up the process) to reach viewers directly through over-the-air broadcasts, streaming apps, and digital platforms.

Some critics argue that retransmission fees provide essential financial stability during this transition. However, clinging to these fees risks slowing progress and undercutting the transformative potential of ATSC 3.0. As cable viewership continues its decline, broadcasters must fully commit to NextGen TV and the opportunities it brings, rather than relying on a legacy revenue stream that will likely not endure the decade anyway.

Viewers and Advertisers Stand to Benefit from an ATSC 3.0-Driven Future

Moving to an ATSC 3.0 model without the baggage of retransmission consent will create a healthier, more competitive environment that ultimately benefits viewers and advertisers alike. Without constant blackouts due to fee disputes, viewers can count on uninterrupted access to local programming. ATSC 3.0’s capabilities would also enhance their viewing experience, providing options like personalized content, high-definition visuals, and even interactivity, which could make local broadcast an appealing choice over “streaming TV” alternatives.

Advertisers, meanwhile, would gain access to digital-style “sub-DMA” targeting options previously unavailable through broadcast, allowing them to reach specific demographics with more accuracy than ever. This ability to serve hyper-localized ads would offer broadcasters a new revenue source independent of the pay-TV model, making the industry more resilient in the long run.

Conclusion: Embracing Innovation Over Outdated Protections

Broadcasters have spent too long leaning on outdated regulations like retransmission consent and must-carry rules, even as the media landscape evolves rapidly around them. This reliance has tethered the industry to a declining pay TV model, limiting its ability to adapt and compete. The transition to ATSC 3.0 is a rare opportunity to break free from these constraints and redefine how broadcasters connect with their audiences.

By relinquishing these old protections, broadcasters can focus on creating a modern, viewer-focused experience — delivering content directly through over-the-air signals, streaming platforms, and digital channels. This pivot would not only eliminate the frustrations of retransmission disputes but also position broadcasters as forward-thinking innovators in an increasingly digital world. The future of broadcasting depends on bold moves, and embracing ATSC 3.0 as the foundation of a more dynamic and consumer-driven media offering is the path to long-term relevance and growth.

Tim Hanlon

Tim Hanlon is the Founder & CEO of the Chicago-based Vertere Group, LLC – a boutique strategic consulting and advisory firm focused on helping today’s most forward-leaning media companies, brands, entrepreneurs, and investors benefit from rapidly changing technological advances in marketing, media and consumer communications.

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