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TV Antennas and Cord-Cutting Fundamentals

Industry Trends
  • September 17 2019
  • Kathy Anderson
TV Antennas and Cord-Cutting Fundamentals

What you and your customers need to know for better, more informed sales

For decade after decade, the TV has been at the center of every living room, family room, or den. But how the images on the screen are received has changed over time. At first, it was the antenna. Then came cable, VCRs, gaming consoles, and satellite TV. As a result, TV antennas were considered hopelessly old-school. Sales dropped dramatically.

Then, when the Internet came into the home, the landscape changed again. Now there are cable-replacement live TV streaming services (AT&T TV Now, Hulu + Live TV, Sling TV, Sony PlayStation Vue, YouTube TV) as well as more targeted streaming services (Netflix, Hulu, Amazon Prime, Disney+, Acorn TV, etc.) that are often accessed through streaming media devices like Roku, Google Chromecast, and Amazon Fire Stick. Plus, local TV stations now broadcast in HD and usually have several sub-channels for more viewing options.

Given the opportunity to pay for only what they want to watch, viewers are ditching cable and satellite TV in favor of some kind of streaming TV. And they are rediscovering the antenna—and all the free local TV channels (plus their network programming) they bring to the table.

Survey says…antenna use and cord cutting are not passing fads

According to the research firm Nielsen, 14% of US homes are watching TV over the air. That’s an increase from 11 million in 2010 to 16 million in 2018.

As a reminder, the switch to digital TV occurred in 2009. This enabled HD programming to be received over the air, with far less compression than cable or satellite for a much clearer picture.

Their survey also discovered:

“As of May 2018, 41% of OTA homes are traditional, without a streaming service provider. That means the majority (of OTA homes) subscribe to a streaming service (59%).”

Parks Associates says that about 22% of US broadband households use an antenna to watch over the air broadcasts.

The Pew Research Center reports that, as of February 2019, 73% of American adults have broadband internet at home. This means the potential for even more people to sign up for streaming services is there.

And perhaps the most compelling research depicting the cord-cutting revolution comes from eMarketer:

TV Antennas, the comeback kid

If you love old movies or retro TV shows, you’re familiar with images shown on older TV sets. There’s static on the screen or maybe fuzzy, rolling, fading, or ghost-like images—like the scary “They’re Here” scene from the movie Poltergeist or the mind-control opening to the 1960s TV series The Outer Limits.

Now as then, TV antennas are how over-the-air signals are received. But there are two key differences between then and now.

  1. Back in the day, there was some wriggle room when it came to antenna placement. However, today, the all-digital ATSC 1.0 signals must be completely locked in before an image appears on a TV. In other words, the TV antenna must be precisely aimed toward the broadcast towers. If the signal can’t be locked, the screen remains blank or shows a jumble of pixelated blocks.
  2. The other difference is power, or lack thereof. Today’s digital signals are weaker, requiring a more direct path to the end-user’s antenna.

Because of these differences, the kind of antenna and its placement are critical—and may require experimentation.

Tower tuning: do your TV antenna research

When someone is contemplating an antenna purchase, the question most frequently asked is “Will this antenna work for my location?”

The best thing you can do is research your area ahead of time. Be prepared to share the findings with your customers. And if they ask about their specific address, do the research on the spot, with them looking over your shoulder. Resources you should bookmark include:

  • Antenna Web is co-sponsored by the Consumer Technology Association and the National Association of Broadcasters
  • TV Fool allows you to search by zip code as well as actual address, and even add antenna height parameters
  • FCC’s DTV reception maps also let you know if a station is changing its frequency, necessitating a rescan of channels

Each site generates a customized map, showing the location of the broadcast towers. They may even suggest the kind of antenna needed for each station’s tower.

Unique variables like terrain and object interference (trees, tall structures, and building materials) cannot be completely factored in. This is why placement experimentation is almost guaranteed, especially with an indoor antenna.

Whether an amplified or an unamplified antenna is the best choice for your customers can be tricky. If they are some distance away from the broadcast towers, amplification makes sense. However, amplification, when fairly close to towers, can actually make reception worse. If there’s some doubt, guide them toward an antenna where the amp can be turned off. Don’t forget that amplification means a powered amp, so the antenna needs to be plugged into an AC outlet.

Besides the valuable research you can provide, and a wide selection of indoor antennas and outdoor antennas, be sure to offer a good return policy. This will eliminate the fear of making the wrong choice and being stuck with a dud.

A final note about using TV antennas. In today’s world of digital broadcasting, TV stations add and subtract channels all the time. They may even move their frequencies. This means any TV antenna customer should rescan their TV channels once a month.

Placement of TV antennas

Antenna placement isn’t hard.

There are two simple rules of thumb:

  1. The closer to a window and the higher the antenna, the better the reception. A rooftop antenna yields the best result.
  2. Even if a multidirectional antenna says it doesn’t require pointing, it still probably does. That’s because there are obstacles that can interfere, so it’s best to give an antenna the clearest path possible.

Your customers may think this is a lot of hard work. Just remind them they only have to do it once. And that the end result is FREE TV.

4K—the future of broadcasting

Some forward-thinking customers may ask whether their new antenna will work once 4K broadcasting starts.

Yes! The current HDTV broadcast standard is ATSC 1.0. The new, 4K-and-so-much-more standard is ATSC 3.0, also called Next Gen TV. There should be some stations in each of TV’s largest 40 markets broadcasting in ATSC 3.0 by the end of 2020.

But there’s a catch, and it’s not the antenna. TVs are not yet built to receive ATSC 3.0. So, the temporary workaround will be add-on digital converter boxes. For those of you with long memories, you’ll recall this is EXACTLY what was done with older TVs when ATSC 1.0 began. And you can reassure customers who just bought a 4K TV that stations must continue ATSC 1.0 broadcasts for at least 5 years after they make the switch.

So, although there may be a converter box or new TV in the future, today’s antennas are future-proof. They will be able to receive 4K signals just fine.

Streaming TV

As mentioned earlier in this blog, there are two basic ways your customers can approach Internet-based streaming:

  1. They can find a streaming alternative to cable that offers similar kinds of multiple channels. These are sometimes referred to as OTT TV (Over the Top), Live TV, cable TV replacements, or IPTV.
  2. They can assemble their own “channels” by selectively signing up for just what they want. And there are a lot of choices out there.

Smart TVs have a variety of streaming options already built-in. Streaming sticks and players have a menu of options too.

The general consensus is that there are over 100 services out there—and counting. Prices vary wildly, with cable TV replacements costing the most.

Of course, if the idea behind a customer’s cord-cutting is to save money, too many à la carte streaming programs can easily match or exceed their previous cable bill.

And let’s not forget the quality (and cost!) of the Internet connection itself. Consumer Reports indicate that for HD quality, downloading speeds should be 8 Mbps. 4K should be 18 Mbps. Some streaming providers may recommend even higher speeds. And if a home has multiple users downloading at the same time, a lot more is needed.

Broadband Internet connectivity is in 73% of American homes. But speeds that are okay for checking email are not fast enough for true streaming. And that need for faster speeds equates to a higher monthly bill. As many Internet providers also provide cable or satellite TV, there’s a real financial temptation on their end to raise monthly Internet fees to make up for lost cable and satellite TV revenue. Plus, when a product is a must-have and there’s little competition, prices always go up.

However, once 5G is available from wireless providers for home (or fixed) use, it will rival today’s broadband wired connections. Hopefully, a price war will break out with the home consumer as the beneficiary.

TV accessories

As long as your customers have a TV, TV antenna, and Internet connectivity, their entertainment needs can be met for years to come. But don’t forget about the accessories!

In addition to stocking TVs, TV antennas, and streaming TV players, you can profit by carrying TV mounts and soundbars. Wall mounts come in fixed, tilting, and completely articulating formats. These declutter tabletops and transform the TV into a work of entertainment art. And wall shelves can house A/V components, also freeing up furniture for other household uses.

Because of their thin-bezel design, today’s TVs have very little room for adequate-sized speakers. So, HDTVs speakers lack the volume and clarity needed to truly enjoy that vivid, clear picture. The solution is a simple-to-install soundbar. Soundbars feature multiple drivers and channels, all housed in a single cabinet. Some soundbars even include a wired or wireless subwoofer, adding true bass. Most also have Bluetooth and an aux input so they can playback audio from a variety of sources.

The digital TV and cord-cutting revolution

TVs and program choices have come a long way since 2009 when digital TV standards became mandatory in the US. 4K Ultra UHD TVs are mainstream. 4K broadcasting is on the horizon. 8K TVs are a reality, with Japan already selectively broadcasting in 8K. Plus, there is a plethora of streaming channels vying for cord-cutter dollars—with more appearing all the time.

Stay on top of the latest tech and trends! Be sure to check order.petra.com for the latest home theater and custom installation products.