A December 2023 report from Parks Associates revealed a couple of somewhat surprising research findings: 20% of U.S. internet households own a TV antenna, and 12% of those that don’t plan to buy one in six months.
OTA has long seemed like the perfect complement to streaming services for cordcutters, and the popularity of antennas among internet households appeared to confirm that notion. But why now? This has long been the case.
I interviewed Alan Bullock, author of the Parks Associates “ATSC 3.0: Impact and Opportunity for Video Services” report to find out and to explore a little deeper where NextGen TV stands.
(An edited transcript.)
TVTech: Your latest report finds OTA popularity is growing among internet households. Presumably, many of these households already stream content. So why the uptick in antenna use? Is it an economic factor like inflation that is driving viewers to over-the-air linear television to complement free streaming options like FAST and AVOD channels?
Alan Bullock: That wasn’t the main focus of the report, but peripherally, I do think inflation is causing people to reevaluate the number of services that they subscribe to. Over the last few years, especially during COVID, the average number of services people subscribed to has crept up.
Our latest research finds that close to half of internet households that subscribe to streaming services subscribe to at least five. Of course, most if not all of those services have been implementing price increases. So, the total cost is creeping up.
I think as people are affected by inflation, they're looking for ways to cut back. Certainly, if they recognize the ones they're not watching, they may decide to pare back.
TVT: Does that mean it also is encouraging viewers to consider free OTA?
AB: I think you’re right. We asked how many had an antenna and how many intended to buy one. That is one of the selling features of an antenna as you know, the plethora of free digital channels that are on the air. Now there are the new features ATSC 3.0 enables. They offer additional reasons to buy and use an antenna if the consumers know about them.
TVT: How aware is the general public about ATSC 3.0/NextGen TV?
AB: Unfortunately, it’s very low.
TVT: How low?
AB: This is Alan-based, not research-based. We haven't gotten into this specific survey questions on ATSC 3.0 technology or NextGen TV as it's to be marketed to consumers. But I think 10% [knowing about 3.0] would be generous, especially if you're talking about a working knowledge of what it actually does for them.
People may have heard of NextGen TV, and if they're paying any attention in the store they may see it on most if not all of the Sony TV boxes and a few of the models from other manufacturers.
So, they may have seen the term, but then they get mixed messages from the retail employees who may or may not actually know what it’s all about. I’ve asked a few, and they say, “Well, it’s a better picture,” or “It’s a better quality stream,” or “It’s a better quality image and sound.” All of those answers are not untrue. But they are far from the complete picture.
TVT: So, people don’t know what NextGen TV does.
AB: I would say they don’t.
TVT: How is the public finding out about what 3.0 offers at this point?
AB: The plan is for some industry groups [like Pearl TV] and some station ownership groups as they launch 3.0 in various markets to do some media campaigns. And I understand that there are plans to do additional campaigns.
I live in Raleigh, N.C. We’ve got ATSC 3.0 on the air. I don’t recall seeing any marketing efforts here.
TVT: There has been the understanding among broadcasters that ATSC 3.0 tuners in new TVs are along for the ride with many new models. That means that over time the audience will be populated organically with NextGen TV receive capability—a solution for not having a DTV conversion-like government mandate, extra channels for simulcasting and a conversion box coupon program. Is that understanding about being along for the ride correct?
AB: I would say it’s correct. The consumer electronics industry is looking at 10 million NextGen TV sets having been sold, and I have no reason to question that number. But I would dare say that most of the consumers who bought one probably don’t realize they have NextGen TV capabilities built into their sets and what it can do for them.
TVT: OK. If it’s not consistent, memorable marketing, if it’s not a well-informed retail sales force, if it’s not a clear understanding of its benefits by consumers, what is driving the sale of NextGen TV sets?
AB: I don’t know. I would be hard pressed to say anything is driving the sales of NextGen TVs. Like I said, a lot of people, if they are getting a higher end 4K television might be getting NextGen TV. Certainly, if they’ve buying a Sony 4K television, they’re getting NextGen.
But I am not sure there is anything that’s causing consumers to run out and say, “I’ve got to have one of those NextGen TVs.”
