Broadcasters Want To Kill ATSC 1.0 – But At What Cost To Viewers?

LocalProximity
Written By Tim Hanlon

Michael Dziedzic / @lazycreekimages / via Unsplash

As the television industry evolves, so too does the technology that powers it. However, not all advancements in the media space are equally beneficial for consumers, particularly when they disrupt established and widely adopted systems. One such shift is underway as the National Association of Broadcasters (NAB) advocates for a mandatory transition from the current ATSC 1.0 broadcast standard to ATSC 3.0, a newer standard with enhanced features. While these new features—such as 4K HDR video, on-demand content, and targeted advertising—are appealing to many broadcasters, this transition could come at a significant cost to consumers, especially those who rely on over-the-air (OTA) signals to access free local television.

Broadcasters argue that the move to ATSC 3.0 will unlock an array of advanced capabilities that align with modern viewing preferences. From high-definition video to interactive features, ATSC 3.0 promises to improve the quality and versatility of OTA television. Proponents also see it as a necessary step in the evolution of broadcast technology, particularly as digital media consumption shifts increasingly toward streaming platforms. However, this transition comes with a significant hurdle: consumer adoption.

Currently, a small fraction of television sets are compatible with ATSC 3.0. According to industry reports, only about 10% of TVs shipped in the United States last year support the new standard. The reality is that most consumers still rely on older models, and upgrading to a TV that supports ATSC 3.0 can be expensive, particularly for those who have invested in large-screen sets that may not have been designed with this transition in mind. Even for consumers who own newer models, the hardware and software limitations of ATSC 3.0—especially regarding compatibility with older devices—pose serious concerns.

While buying a new TV with ATSC 3.0 support is one option, it’s far from the most practical or affordable solution for many. The alternative is purchasing a converter box, which allows older TVs to receive the ATSC 3.0 signal. However, these converter boxes are currently priced at around $90 or more, which could be a steep cost for consumers who are already contending with rising prices in other areas of their lives. These devices are not only expensive but also often complicated to use and prone to technical issues. The consumer experience in transitioning to ATSC 3.0 could easily become a burden, especially for those who are not particularly tech-savvy.

Further complicating matters is the issue of copy protection and content restrictions imposed by the new standard. ATSC 3.0 has been widely criticized by tech enthusiasts for its restrictive copy protection schemes, which can prevent consumers from recording and archiving content they receive over-the-air. Over-the-air DVR systems, a popular way for consumers to store broadcast content, are significantly hindered by these limitations, leading many to avoid the new standard altogether. For viewers who value the freedom to record shows and movies without the restrictions that come with cable or streaming services, this aspect of ATSC 3.0 could be a major deterrent.

The push to make ATSC 3.0 mandatory by 2028 in the 55 largest U.S. markets, and by 2030 in all markets, seems premature when weighed against these barriers to adoption. While broadcasters may see this as a necessary step to future-proof their business models and capitalize on the lucrative opportunities offered by targeted advertising, the proposal fails to take into account the real-world impact on millions of consumers who are not ready—or able—to make the transition.

In many ways, this push mirrors the early days of digital television, when consumers were forced to upgrade their equipment or lose access to free, over-the-air content. This time around, however, the stakes are higher. The current broadcast landscape is already fragmented, with viewers increasingly turning to streaming platforms for convenience and content variety. Forcing consumers into an expensive upgrade cycle may only accelerate this shift, particularly as more affordable, flexible viewing options continue to emerge.

The challenge of ensuring that all consumers can access local television without undue financial strain should be a priority. While it is important for broadcasters to innovate and enhance their services, it is equally important that these changes do not alienate the very viewers who rely on OTA broadcasts for their daily news, entertainment, and sports programming.

The transition to ATSC 3.0 may be inevitable, but it should not come at the expense of consumer choice and accessibility. Instead of rushing to impose a hard deadline, the industry should focus on building out infrastructure that supports a smoother, more inclusive transition for all viewers. This could include lowering the cost of converter boxes, increasing public awareness, and working with manufacturers to ensure that more affordable ATSC 3.0-compatible sets are available to the public. Until these issues are adequately addressed, any push to kill ATSC 1.0 risks leaving a significant portion of the population behind.

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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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