Despite the initial hype and significant investments, NextGen TV, also known as ATSC 3.0, has yet to deliver on its promise of substantial new revenue streams for broadcasters. However, industry leaders speaking at TVNewsCheck’s Local TV Strategies conference expressed optimism that 2025 will finally be the year when 3.0 starts generating meaningful income.
Datacasting Takes the Lead
While early projections forecast billions in datacasting revenue by 2027, the reality has been far more modest. Bandwidth limitations, low consumer adoption of NextGen TV receivers, and the rise of free ad-supported streaming channels have all contributed to the slower-than-expected growth.
However, Scripps’ Kerry Oslund believes that the first “frameable dollar” from datacasting is on the horizon. Scripps, in partnership with Nexstar, has been actively pursuing datacasting opportunities through their joint venture, OTA Wireless. They have developed tools like a developer’s kit and a “datacasting calculator” to entice potential customers, particularly those seeking cost-effective alternatives to traditional wireless data delivery.
Sinclair is also making strides in datacasting with its BitPath joint venture and its own Broadspan platform. Sinclair’s Mike Kralec anticipates that Broadspan will be generating real business in 2025, focusing on applications like streaming offload and file delivery.
Smart Broadcasting and Enhanced Linear TV
Beyond datacasting, NextGen TV offers opportunities to enhance the traditional linear TV experience. Run3TV CEO Michael Collette highlighted “smart broadcasting” features such as program restart, which allows viewers to catch up on live programs from the beginning. He cited NBCU’s successful deployment of an Olympics app during the summer games as an example of how 3.0 can drive audience engagement and incremental viewing.
Collette also sees potential for interactive advertising and dynamic ad insertion (DAI) to generate revenue, leveraging 3.0’s targeting and measurement capabilities. He envisions a future where broadcasting is fully digitized and data-driven, similar to streaming giants like Netflix and Amazon.
Building the Foundation for Future Growth
Gray Television’s CTO, Dave Burke, emphasized the importance of laying the groundwork for NextGen TV’s success. Gray has been focused on the technical aspects of the rollout, including implementing HDR programming and launching Broadcast-Enabled Streaming Television (BEST) in Las Vegas.
Burke remains confident in the long-term potential of 3.0, even if immediate revenue is limited. He believes that the platform will evolve significantly, opening new opportunities for audience measurement, first-party data, and datacasting.
A Long-Term Vision
While the industry may not be seeing the explosive revenue growth initially predicted, there is a sense of optimism that NextGen TV is on the cusp of fulfilling its potential.
The question now is will recent lawsuits and low adoption be short-term bumps in the road or a long-term major block to the future of ATSC 3.0 NextGen TV when it comes to the revenue they wanted.