TV Stations Are Launching Multicast Networks As An Opportunity To Reach Cord Cutters
With digital compression, TV stations have been launching more and more multicast networks. Station owners see a niche as consumers "cut the cord" and subscribe to streaming video services
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As viewers watch more streaming video content and cancel their cable/satellite subscriptions, broadcast stations have been doubling down on free ad supported over-the-air (OTA) television, a business model whose origins started with the first TV commercial (Bulova watches) which aired on July 1, 1941.
In recent years, broadcast station groups have been launching free over-the-air digital multicast networks, a capability begun in 2009 when digital, high-definition television replaced analog TV. (These multicast networks have also been called diginets.) Since digital signals can be compressed, local TV stations can provide additional channels to viewers. A number of station groups have been launching these multicast networks including; Scripps SSP +1.7%, Sinclair, Tegna, Nexstar, CBS, NBCU with more planned. These station groups see multicast channels and their over-the-air transmission as a revenue opportunity as cable TV viewing and penetration falters from cord-cutting.