Channel multiplication, new formats and the takeoff of digital TV in emerging markets looks set to drive the value of video transmission services over satellite to $27 million by 2020.
According to satellite consulting and analyst firm Euroconsult this figure includes revenues from TV channels and contribution services for permanent and occasional use and would represent an $11.2 billion rise on what was amassed in 2010 when an estimated 25,000 TV signals were transmitted by satellite.
Even though North America and Europe are currently the largest markets, the analyst believes that takeoff of digital TV in emerging regions, such as India, Russia and Brazil, could make those markets the most important growth engines over the next ten years.
This would be just one of a number of significant growth drivers said Pacome Revillon, CEO of Euroconsult: “Anticipated revenue growth for video transmission services in the coming years is based on strong market drivers such as the multiplication of channels, the launch of new formats and the takeoff of digital TV in emerging regions…Furthermore, demand for increasingly complex video transmission solutions will push service providers to create end-to-end solutions with satellite remaining a key part of the delivery network.”
The ‘Video Transmission Services over Satellite, Global Market Analysis & Forecasts to 2020′ report adds that technological improvements are profoundly transforming the market for video transmission, with more complex and diverse requirement offering new revenue opportunities to market players. The migration to HD and 3D transmission formats, the roll-out of fibre and 3G/4G networks, the development of linear and non linear usage and the multiplication of video screens are cited as playing a particularly critical role in this phenomenon.
Euroconsult calculates that video contribution services, with the transmission of raw video material, are also growing with a 24% CAGR in terminals deployed in the last five years. It says the need to broadcast live programming and cover both global and local events is driving demand for occasional video services.
Even though service providers such as Globecast, Arqiva and RRSat currently account for 6% of the total market value of video transmission services, Euroconsult expects new players to emerge alongside the market consolidation and reorganisation of historical market players. It noted that recent transactions, such as the acquisitions of Ascent Media activities and Crawford Communications by Encompass, may be followed by further M&A activities in the next few years.
Such moves may be required to take advantage of growth opportunities and reach the critical size needed to manage more complex content management and transmission requirements.
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