NSR Projects US$8.2 Billion in MPEG4 and DVB-S2 Equipment Sales Over Next Five Years

DTH Set-Top Box Replacements, Satellite Broadband Upgrades and New HITS Platforms to Drive Demand

CAMBRIDGE, MA--(Marketwire - January 29, 2008) - NSR today released its newest market intelligence and forecast report: MPEG4 and DVB-S2: Assessing Implementation Schedules for Advanced Video Compression and Satellite Modulation. The report examines market and technology trends and provides regional implementation schedules for MPEG4 and DVB-S2 equipment on the ground for five distinct satellite applications.

The report concludes that the market for DVB-S2 and MPEG4 equipment will experience strong demand driven by application-specific factors for both new system deployments and migration scenarios. NSR projects that worldwide equipment demand will increase at the average annual rate of 39.5%, with projected global shipment of almost 43 million DVB-S2/MPEG4 units between 2008 and 2012. Equipment vendors and service providers are expected to achieve revenues of over $8.2 billion for the sale of these units, comprised primarily of MPEG4 set-top boxes, DVB-S2 receivers, satellite broadband indoor units (IDUs) and integrated receiver-decoders (IRDs).

The study indicates that deployment schedules will be tightly associated with a range of factors that affect growth on a region-by-region basis. Factors slated to affect market expansion include HDTV screen penetration, HD content availability, ARPU constraints, Ka-band and Ku-band footprints, triple play pressures and expected channel growth.

"While all studied applications will benefit from the adoption of DVB-S2 and MPEG4, the aggregate numbers are largely influenced by a set-top box replacement cycle taking place within the DTH sector to allow the reception of HDTV offerings," noted Carlos Placido, Analyst for NSR and author of the report. "Nevertheless, there will also be strong demand for DVB-S2 and/or MPEG4 equipment to support a growing need to implement satellite broadband with adaptive code modulation (ACM), HITS platforms that facilitate cable digitization and TelcoTV, and digital media content distribution," stated Placido.

About the Report

MPEG4 and DVB-S2: Assessing Implementation Schedules for Advanced Video Compression and Satellite Modulation is a multi-client report now available from NSR. In this report, NSR analyzed the most relevant applications for the use of DVB-S2 and MPEG4 equipment in a satellite-delivered context, including: direct-to-home (DTH) and satellite Free-to-Air (FTA); satellite broadband and IP trunking; "Headend in the Sky" (HITS); video distribution and contribution; and digital media distribution. For additional information on this report, including a full table of contents, list of exhibits and executive summary, please visit www.nsr.com or call NSR at 617-576-5771.

About NSR

NSR is an international market research and consulting firm specializing in satellite and wireless technology and applications. NSR primary areas of expertise include satellite technology, IP applications, wireless convergence and broadcast services. With extensive expertise in all regions and a number of broadband sectors, NSR is a leading provider of in-depth market insight and analyses.