Key Points
- Pearl TV launched a program to support lower-cost converter boxes that allow consumers to receive NextGen TV signals without new TVs.
- The initiative aims to reduce basic ATSC 3.0 converter box prices to around $60, down from current $200-plus devices.
- The effort comes as the FCC weighs a full NextGen TV transition later this decade without a federal rebate program.
Pearl TV, a consortium comprised of local television broadcasters and other stakeholders in that industry, is launching a new program that aims to make it easier for Americans to purchase converter boxes compatible with the NextGen TV broadcast standard.
On Friday, Pearl TV said its Pearl Converter Box Program will help “support a new category of affordable, basic NextGen TV boxes” that will allow consumers to access ATSC 3.0 signals without having to upgrade their TV sets entirely.
The devices are expected to work similar to converter boxes offered to Americans during the last major broadcast standard transition, which saw local TV stations move away from analog signals to digital, high-definition ones.
Broadcasters say the promises of NextGen TV are too great for consumers and federal regulators to not get on board with a similar full transition away from the current digital standard to ATSC 3.0. Those benefits include Internet-based delivery of some video signals, including 4K feeds; better use of compression technology and existing TV bandwidth; the delivery of personalized advertisements and hyper-local public safety messages; and a repurposing of existing frequencies for other purposes like GPS and wireless data.
The Federal Communications Commission (FCC) is currently weighing a proposal that would allow broadcasters to move to NextGen TV on a full-time basis by the end of the decade, with most large-market TV stations transitioning by 2028. The proposal has the backing of some industry groups, including the National Association of Broadcasters (NAB), which represents the largest independent owners of local TV stations.
Critics caution that a full transition is too soon, given that most Americans lack the necessary devices to receive NextGen TV signals. They also point to the high cost of existing NextGen TV-capable devices, including converter boxes that cost upward of $200.
The program rolling out by Pearl TV is expected to lower the cost of those devices, according to people who spoke with The Desk over the past few months. While the press release issued Friday was light on specific pricing details, sources familiar with the program are hoping to reduce the cost of basic, NextGen TV-capable devices to $60 per box.
Device manufacturers who want to participate in the Pearl TV program will have to adhere to certain specifications and standards, including agreements on pricing.
“Converter Box Program specification is being developed now and will be informed by consumer research, broadcaster requirements, retail pricing requirements, labeling and certification specifications, and ongoing discussions with device manufacturers. The program establishes a common certification and interoperability framework to support a range of eligible receiving devices across participating manufacturers,” Anne Schelle, the Managing Director of Pearl TV, said in a statement. “The program is open to any qualified converter box manufacturer that aligns with the program’s baseline device profile and affordability goals.”
Unlike the prior broadcast TV transition, none of the groups backing the effort to move broadcasters to NextGen TV have proposed a federally-funded rebate program. That program, offered during the analog-to-digital transition, allowed Americans to receive two digital TV boxes for free based on a retail price of $40 per box.
As it stands now, Pearl TV’s program would require Americans to pay for converter boxes — something that will be mandatory for over-the-air viewers if the FCC approves a hard transition to NextGen TV. But proponents say the cost will be substantially reduced for basic boxes, which is better than nothing.
Schelle said the first basic converter boxes under Pearl TV’s program could be offered as soon as this year.
“As NextGen TV adoption expands and the FCC considers future policy frameworks, these affordable devices are expected to play an important role to bridge consumers who rely on over-the-air television,” Schelle said.
Pearl TV is expected to offer more insight into its affordable converter box program during the Consumer Electronics Show in Las Vegas next week.
