New Video Channels Continue to Be Main Growth Driver for Satellite Capacity
Additional 9,500 Standard Definition and 900 HD Channels to Be Carried by 2012
| Source: Northern Sky Research
CAMBRIDGE, MA--(Marketwire - January 24, 2008) - In its recently released study covering the
entire commercial satellite transponder leasing sector, NSR projects that
worldwide carriage of new standard definition (SD) and high definition (HD)
channels for all categories of television services will account for between
75% and 85% of C- and Ku-band transponder demand growth in most regions
around the world. NSR projects in its "Global Assessment of Satellite
Demand, 4th Edition (GASD)" report that approximately 1,750 additional SD
channels and another 150 HD channels will be placed on commercial C- and
Ku-band satellite payloads every year for the six-year period between 2006
and 2012. In fact, DTH services alone will contribute nearly 4,000 SD
channels and just fewer than 500 HD channels by 2012 according to NSR's
latest industry forecasts.
"Even though many other segments like satellite broadband, cellular
backhaul or mobile services are key to industry growth, the simple fact is
that plain old channel growth continues to be the bread and butter business
for commercial satellite operators," stated Patrick French, Senior Analyst
for NSR and author of the report. "Year after year, NSR tracks strong
growth in the video markets, and new technology advances like MPEG-4 and
DVB-S2 just barely slow down the pace of transponder demand growth from the
addition of new channels." NSR is even beginning to see the reverse trend
as adoption by consumers of large screen flat panel TVs is forcing some
broadcasters to improve even their SD signals so as to keep viewers happy
about picture quality. "Today only a small minority of broadcasters has
upped the bandwidth used for carriage of their standard definition
channels," said French, "yet this could be the thin edge of the wedge with
this specific trend gaining momentum in the coming years as picture quality
becomes a competitive advantage as important as channel choice."
Even if the global trends are positive for video markets, NSR does note
some areas to be closely monitored by the industry. "The launch of new DTH
platforms in the last two to three years has truly been incredible,"
reported French, "yet some countries are now seeing three, four and even
more competing DTH services plus cable and other new pay-TV offerings. Some
consolidation is inevitable, it is just a question of who and when." NSR's
study also closely tracks the migration of analog channels and feeds to
digital. "Most of the converted analog capacity gets repurposed by the
client, yet there are occasions when contracts are cancelled or not
renewed, and this can impact transponder demand in specific markets like
the USA or Germany," according to French. "Still, the long-term
fundamentals are solid in the video sector, and these tend to be more
short-term issues."
About the Report
NSR's GASD 4th Edition study provides the industry with the most detailed
satellite capacity analysis available of multiple applications including
video distribution, DTH, video contribution & occasional use television,
telephony & carrier services, broadband services for enterprises, Internet
access and IP trunking, narrowband VSAT services, and a group of other
niche satellite services. A total of twelve regions are investigated in the
study with separate C- and Ku-band demand forecasts undertaken for each of
the seven major satellite applications addressed plus an assessment of
commercial Ka-band demand in pertinent markets. Whenever possible, NSR made
use of a bottom-up market evaluation methodology so that the root demand
drivers and restraints would feed directly into the market assessment. The
study provides a highly granular evaluation of demand for C-, Ku- and
Ka-band satellite transponder capacity with over 200 demand forecasts
readily accessible in accompanying Excel files.
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. 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.