Broadcast Industry Faces Growing Backlash Over ATSC 3.0 Encryption as FCC Weighs Transition Deadline
The fight over encrypted broadcast television signals has intensified as the Federal Communications Commission weighs whether to approve the broadcast industry's push for a mandatory transition to the ATSC 3.0 standard by 2028. At the center of the controversy is the industry's decision to encrypt over-the-air signals, effectively locking out popular consumer devices that have served cord-cutters for nearly two decades.
The Core Dispute: Gateway Devices vs. Industry Control
The conflict revolves around "gateway" devices like the HDHomeRun Flex 4K, manufactured by SiliconDust, which allow users to connect a single antenna and distribute TV signals throughout their homes via Wi-Fi or ethernet. These devices have been popular among cord-cutters because they replicate many streaming service features, allowing users to watch and record live television on any device with a screen.
However, as broadcasters have increasingly adopted encryption for their ATSC 3.0 signals—with nearly 24 percent of all ATSC 3.0 stations now encrypted, up from 16 percent last July—these gateway devices have been systematically excluded from accessing encrypted content.
Pearl TV's Huawei Accusations
In a recent escalation, the broadcast consortium Pearl TV filed a letter with the FCC claiming that SiliconDust's HDHomeRun devices cannot access encrypted content because they contain a chipset manufactured by HiSilicon, a wholly owned subsidiary of Huawei, which has been designated a national security threat by the FCC.
"The most troubling aspect of SiliconDust's behavior is that it actively markets a device to consumers that it knows will not work with the A3SA content protection technology being used by ATSC 3.0 broadcasters," Pearl TV's attorneys stated in their filing.
However, consumer advocate Lon Seidman's investigation revealed what appears to be selective enforcement of these rules. He discovered that the GT Media X1, a Chinese-designed device that is certified to decrypt ATSC 3.0 content, contains a chip made by YMTC, which was added to the Commerce Department's black list under the Biden administration in 2022.
SiliconDust Pushes Back
SiliconDust CEO Nick Kelsey strongly disputed Pearl TV's claims, noting that "The HDHomeRun is not a Chinese developed or made product and does not fall under this categorization" and that the company has "zero association with the Chinese government…and are proudly designed and developed in the United States of America."
Kelsey also pointed out that the A3SA approved the HDHomerun for on-device decryption by issuing Widevine security credentials in 2022 and that Pearl's partners granted full NextgenTV certification for the HDHomerun product and software knowing full well what was inside the unit in 2023.
FCC Opens Public Comment Period
The controversy has reached a critical juncture as the FCC formally opened a comment period on a petition from the National Association of Broadcasters requesting a two-phase transition plan. The NAB's proposal calls for ending ATSC 1.0 simulcasting in the top 55 markets by February 2028, with a full national transition by February 2030.
Notably, the Commission has acknowledged thousands of consumer complaints concerning digital rights management issues that have prevented access to ATSC 3.0 content despite having compatible equipment.
Consumer Impact and Market Reality
The encryption controversy has had real-world impacts on consumers and the marketplace. Despite the technical restrictions, a quick search of Amazon for "TV tuners" reveals that customers are choosing gateway devices over standalone TV tuners by a large margin. Three of the top four best sellers when searching for "TV tuners" are Tablo ATSC 1.0 gateways, while a similar search for "ATSC 3.0 tuners" reveals that the HDHomerun Flex 4k product is the best selling ATSC 3.0 device.
The restrictions have forced consumers to rely on single-TV tuner boxes that require separate antenna connections for each television, eliminating the convenience and cost savings that gateway devices provide.
Industry's Questionable Security Arguments
The broadcast industry has justified encryption by claiming it prevents signal theft and hacking. However, critics point to security vulnerabilities in devices that have been approved for encrypted content. The GT Media Box had an Android TV security patch level that was four years out of date when it shipped, and users were required to sideload applications since it lacked the proper Google Play Store.
Technical Limitations of DRM Implementation
The current DRM implementation creates significant technical barriers. ATSC 3.0 uses Google Widevine DRM encryption which is a competitor to Apple FairPlay DRM encryption, meaning encrypted content cannot play on Apple devices. Roku devices and LG TVs don't meet A3SA requirements for undisclosed reasons, further limiting consumer choice.
The Business Model Behind Encryption
Industry observers suggest the real motivation behind encryption is protecting broadcasters' lucrative retransmission fee revenue. As one analyst noted, many broadcasters now derive more than half their annual revenue from fees charged to cable and streaming providers—revenue that could be threatened if consumers can easily access free over-the-air alternatives through gateway devices.
Emerging Competition: 5G TV
Adding to the complexity, a company called HC2 Broadcasting Holdings, which owns about 60 low-power TV stations across the country, is asking the FCC for permission to use a different technology entirely: 5G TV. This alternative would use mobile phone standards instead of ATSC 3.0, potentially creating a format war in the broadcast industry.
Consumer Technology Association Fights Back
The Consumer Technology Association (CTA) has pushed back against Pearl TV's arguments, with CEO Gary Shapiro stating: "This is the NAB playbook: if consumers aren't choosing your tech organically, demand the government make them." The CTA has opposed mandating ATSC 3.0 tuners, arguing that market forces should determine the standard's adoption.
The Google Widevine Lock-In Problem
SIDEBAR: How ATSC 3.0's DRM Choice Creates a Technology Monopoly
The ATSC 3.0 standard's adoption of Google Widevine as its digital rights management system has created significant competitive concerns and device compatibility issues that extend far beyond the HDHomeRun controversy.
What is Widevine? Google Widevine is a proprietary digital rights management system developed by Google to protect copyrighted content. While originally designed for web streaming services like Netflix and YouTube, broadcasters chose to implement Widevine as the DRM standard for encrypted ATSC 3.0 broadcasts.
The Compatibility Crisis This choice has created massive device compatibility problems:
- Apple Devices: Cannot play encrypted ATSC 3.0 content because Apple uses its own FairPlay DRM system, which competes directly with Google's Widevine
- Microsoft Platforms: Xbox consoles and Windows 10/11 systems are locked out because Microsoft uses PlayReady DRM, another Widevine competitor
- Roku and LG TVs: Cannot meet A3SA requirements for undisclosed reasons, despite supporting other DRM systems
- Limited Android Support: Even Android devices face restrictions due to additional A3SA requirements beyond basic Widevine support
Market Concentration Concerns The Widevine requirement effectively gives Google control over which devices can access encrypted broadcast television:
- Device manufacturers must obtain Google's approval for Widevine implementation
- Google can deny or revoke Widevine licenses, potentially blocking entire device categories
- The system creates barriers for smaller manufacturers who may lack resources for Google certification
- It establishes Google as a gatekeeper for free over-the-air television access
Industry Alternatives Ignored Critics note that broadcasters could have chosen more open DRM standards or device-agnostic approaches, but instead selected a system that favors one technology giant. This decision appears to contradict the traditional openness of broadcast television, where any certified receiver could access signals.
Long-term Implications If the FCC approves the mandatory ATSC 3.0 transition, Google's Widevine could become the de facto standard for all future broadcast television, potentially giving the company unprecedented influence over American broadcast media consumption and device markets.
What's Next
With the FCC comment period closing May 7, 2025, and reply comments due June 6, the commission faces a decision that could reshape the future of free over-the-air television. The agency must balance the broadcast industry's desire for a mandated transition against thousands of consumer complaints about encryption limiting device choice and functionality.
The outcome will determine whether the future of broadcast television embraces the open, consumer-friendly approach that has characterized over-the-air TV for decades, or moves toward a more restrictive, encrypted model that resembles cable television's walled-garden approach.
Sources
- Goodin, Dan. "Broadcast group, SiliconDust trade blame over NextGen TV DVR issue." The Desk, July 22, 2025. https://thedesk.net/2025/07/silicondust-pearl-tv-hdhomerun-atsc-3/
- Seidman, Lon. "Did TV Broadcasters Just Admit to Selectively Enforcing Their Own Encryption Rules?" Lon.TV Blog, July 22, 2025. https://blog.lon.tv/2025/07/22/did-tv-broadcasters-just-admit-to-selectively-enforcing-their-own-encryption-rules/
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