This logic makes no sense to me. As there must be 156 other ways to listen to music other than apple music.
But yeah, decoding over the air HD would be really nice. Does any phone actually do this?
Is any phone actually large enough to include an antenna capable of picking up OTA? Unless you are in a large enough market, you probably can't even pickup much of anything OTA for TV use without an external antenna. I can't get an usable set of channels for my TV (up to 60 miles away for some network channels) without putting an antenna in the attic and also using a powered amplifier.
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It would totally be possible to build an app that could decode TV signals with the CPUs of current iPhones, but there’s no way to access those signals unless they’re sent over cellular or WiFi, not normal TV broadcast bands. If you attached an antenna to your phone and an external A/D it would be possible though (I use this kind of tool often at work on a Pixel 3)
I generally use streaming now since Youtube TV was the first of the national streaming providers to provide my local channels. For the year before that I used a product called HDHomeRun that connected to my amplified TV antenna, and allows streaming on the local network to apps on MacOS, Windows, iOS, etc. My version just forwards the mpeg2 signal (which the phones are powerful enough to process). Another version can convert to MP4 for lower data rates. Which can help with the optional DVR solution (onto a PC or some NAS units) use less disk space.