Page 24 - The Channel Issue 2 2010

ideo broadcasting is the leading revenue driver in the satellite industry, representing more than 60% of the demand for satellite capacity and with more than two thirds of operators distributing TV channels. In the last decade, dozens of satellite pay-TV platforms have been launched around the world. There were 113 TV platforms in service at the end of 2009, covering more than 100 countries across all regions. With close to 130 million subscribers and revenues of around $70 billion in 2009 according to Euroconsult’s research report “Satellite TV Platforms,World Survey and Prospects to 2019,” the satellite pay-TV industry is now a proven distribution channel for digital entertainment.

As a business to consumer (BtoC) industry, the satellite video broadcasting industry is vulnerable to the current economic crisis, and the impact has been mixed. On one side, free-to-air TV channels distributed on satellite suffered directly due to the decline in advertising revenues. Growth in the number of satellite TV channels distributed outside satellite pay-TV platforms was 4% in 2009, down from 11% in 2008. Historical markets including North America, Western Europe and Oceania slowed noticeably.

On the other hand, the satellite pay-TV market has been ramping up. In 2009, nine new platforms were launched and close to 20 million new households subscribed to satellite pay-TV offerings which represented a 16% impressive growth. Most of the growth was generated by the emerging digital markets including Central Europe & Russia, Sub-Saharan Africa, Latin America and South Asia. For 2010, prospects remain well-oriented overall: during the first half of the year, five platforms have already been introduced worldwide and several projects are under development. While subscriptions have been growing, revenues remained mostly flat in 2009. In Euroconsult’s research report “Satellite TV Platforms, World Survey and Prospects to 2019”, we observed that historical platforms in the most mature satellite TV national markets have reached operational profitability but

With close to 130 million subscribers and revenues of around $70 billion in 2009, the satellite pay-TV industry is now a proven distribution channel for digital entertainment. Mounia El Bouzegaoui, analyst at Euroconsult with focus on digital broadcasting, looks at world trends and prospects to 2019 V