The American Television Alliance (ATA), representing pay TV and telecom providers, has raised significant concerns with the Federal Communications Commission’s Media Bureau about the costly transition to NextGenTV/ATSC 3.0, particularly for one of its key members, DirecTV. In a detailed letter dated August 12, the ATA outlined the financial and technical burdens the satellite provider would face, urging the FCC to consider the implications for multichannel video programming distributors (MVPDs) like DirecTV.
The transition to ATSC 3.0, the next-generation broadcast standard promising enhanced picture quality and interactive features, poses two major hurdles for DirecTV. First, the company’s millions of set-top boxes are designed solely for ATSC 1.0 signals and cannot process ATSC 3.0. Replacing this equipment would be “cost-prohibitive,” according to the ATA. Second, DirecTV’s satellite infrastructure lacks the capacity to carry both ATSC 1.0 and 3.0 signals simultaneously. The letter explained that DirecTV’s “spot beams,” used to deliver local broadcast signals to various markets, are already at full capacity and cannot accommodate additional ATSC 3.0 signals without significant reconfiguration.
The ATA highlighted that DirecTV carries over 1,800 feeds nationwide, and equipping each feed with an ATSC 3.0-compatible receiver—currently priced at approximately $8,000 per unit—would cost nearly $15 million. With limited receiver availability, a surge in demand could drive prices even higher. “These costs would bring no benefits whatsoever for DirecTV’s subscribers,” the letter stated, as the provider would only deliver an ATSC 1.0 signal to customers, rendering the investment a “deadweight loss.”
The letter also addressed ongoing efforts by the Advanced Television Systems Committee (ATSC) to develop standards for MVPD distribution of ATSC 3.0 signals, including a “candidate standard” (A/370) for converting ATSC 3.0 signals into formats compatible with MVPD systems. However, the ATA expressed frustration with the process, alleging that “domineering and uncollaborative behavior” by broadcast representatives in the ATSC’s Working Group has led to a lack of MVPD participation. Even if the A/370 standard is finalized, it remains unclear who would bear the costs of the necessary conversion equipment and signal delivery.
The ATA argued that imposing these costs on DirecTV would be “onerous” and unfair, especially since broadcasters stand to gain the most from ATSC 3.0’s advanced capabilities. Instead, the group suggested spreading the financial burden across the nation’s roughly 1,500 broadcast stations, which would result in a more manageable cost per entity and align expenses with those who benefit from the transition.
The concerns come amid broader tensions in the industry. The Consumer Technology Association (CTA), NCTA – The Internet & Television Association, and the Low Power Television Broadcasters Association (LPTVBA) have also met with the FCC to oppose a petition by the National Association of Broadcasters (NAB) regarding ATSC 3.0. Meanwhile, Pearl TV, a broadcast industry group, has accused CTA members of attempting to “stifle broadcast innovation” by resisting the transition.
As the FCC evaluates the ATSC 3.0 rollout, the ATA’s letter underscores the need for a balanced approach that considers the financial and operational challenges faced by MVPDs. Without a clear resolution on cost allocation and technical compatibility, providers like DirecTV may struggle to support the transition, potentially limiting the benefits of NextGenTV for millions of subscribers.
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