A broadcast flag is a digital data stream status bit that flags, and thus prevents, the unauthorized recording of a digital TV transmission. Broadcast flags forbid the capturing of high-definition (HD) digital video in its high-resolution format.
Broadcast flag applications are encrypted into protected media and implemented to prevent illegal digital content sharing via peer-to-peer (P2P) networks that violate copyright laws. Broadcast flags also eliminate the need to save digital programs to hard disks and prevents the modification of high-quality digital images.
Techopedia explains Broadcast Flag
Any illegal attempt to record copyrighted movies, songs and TV shows are immediately halted when technological protections are implemented via broadcast flag applications. Data streaming status bits suspend these types of recordings and potentially improper distributions.
Broadcast flags employ certain restrictions, as follows:
Restricts users from saving a digital program to a hard drive or other non-volatile storage
Prevents copying of secondary digital content recordings for sharing or archiving
Forcefully reduces digital content quality during recording
Restricts users from skipping commercials
In November 2003, the Federal Communications Commission (FCC) mandated broadcast flag technology integration for all digital TV sets distributed after July 2005. Multiple restrictions were implemented. Thus, many consider this mandate a consumer rights violation. However, total restriction from downloading and uploading digital TV contents is difficult because of the availability of numerous non-broadcast flag devices.
Even compatible broadcast flag devices have analog connectors. Analog files or programs may be easily converted into the digital format by plugging analog connectors into a computer.