What’s Next for ATSC 3.0 DRM?

As the rollout of ATSC 3.0 continues in the U.S., one major roadblock keeps surfacing: broadcasters’ push to encrypt over-the-air TV signals. This effort has made it more challenging for viewers to access free, over-the-air content and slowed adoption of the new standard by TV and tuner box manufacturers.

Now that the 2024 presidential election is behind us, I take a look at what might happen next in my latest video.

The recent election results are likely going to keep the government out of how broadcasters choose to implement the standard.

During a recent investor call, Nexstar, a prominent broadcaster, expressed optimism about potential regulatory changes under the current administration, particularly around loosening media ownership restrictions.

The FCC currently limits the number of TV stations a single broadcaster can own nationally, as well as the amount of broadcast space in local markets. Broadcasters argue that while they face restrictions, tech giants like Google enjoy open access to screens across the country. Ironically, these same broadcasters rely on Google’s encryption technology to encrypt their signals, making Google both a competitor and a provider. Additionally the only compatible tuner boxes are ones that are running Google’s operating system.

Current FCC Commissioner Brendan Carr, considered the front runner to be the next FCC chair, favors market-driven approaches over governmental mandates. He cites the success of the United States’ 5G rollout and sees the government’s role in ensuring scarce radio spectrum meets its highest and best use in a competitive marketplace.

In his past remarks, Carr has emphasized the importance of letting the market dictate the success of ATSC 3.0, particularly viewing it as an opportunity for “Broadcast Internet” – a high-speed data service for rural areas that could transform TV broadcasters into ISPs. This perspective could ultimately steer the industry toward data services over traditional TV broadcasts, especially in underserved regions.

Given these past statements it’s safe to assume he’ll give the industry discretion to finalize the standard themselves including the encryption component. If the market doesn’t respond well to that, so be it.

And the market may already be responding: ATSC 3.0 adoption is still lagging due to the complexities DRM brings to the mix. Few TVs currently support 3.0, and most that do are higher-end models. DRM certification complicates the production of ATSC 3.0-compatible devices, a situation that has hindered innovation from startups that could otherwise provide affordable options for tuning into these signals.

With the government expecting a transition in 2027, and Carr eying the existing ATSC 1.0 spectrum for 5G data providers, it’s possible market forces and a lack of regulatory pressure may cause broadcasters to pivot their entire business model.

Viewers interested in voicing their opinions on the matter still have the option to submit comments to the FCC. It might be worth reminding the FCC that DRM encryption is limiting the market for a competitive hardware tuning market.