Page 25 - The Channel Issue 2 2010

The number of households actually receiving HD services is expected to reach 39 million by 2012. Consequently, increasing demand for HD satellite capacity is expected in the region over the next three years as broadcasters expand offerings to address increasing demand. While the crisis may have forced some to postpone certain services, HD is expected to represent a support for satellite demand through the crisis.

Even though 3D broadcasts have been available for more than ten years, developments have accelerated in the last couple of years. In the initial development phase of 3DTV, movies – like Avatar and Up – represent most of the available content. Therefore, operators are expected to roll out part-time or PPV channels until there is enough content available. In terms of TV sets, Northeast Asia was the first region to commercialise 3DTV screens in 2008. In 2010, 3D screens will progressively be rolled out by other manufacturers including Samsung, Panasonic and Sony.

Satellite operators are showing growing interest for 3DTV. Eutelsat has given its backing to the emerging 3D standards, which allow the broadcast of 3D in Europe. Eutelsat has been broadcasting an all-3D channel since the beginning of 2009 on the Eurobird 3 satellite, and Astra launched a full-time 3D channel in

May 2010.

The availability of home 3DTV services will definitely play a key role in TV households’ demand for 3DTV screens. Satellite platforms are expected to drive 3DTV services, as it was the case for HDTV. The Korean satellite pay-TV platform, SkyLife, launched Sky 3D, the world’s first 24 hour 3D channel in January 2010. Sky Digital was the second satellite platform to roll out a 3D channel in April 2010. Initially available only in pubs and clubs, Sky 3D will be available to residential households in the autumn of 2010. The 3D channel offers a wide selection of programming, including movies, entertainment, and sports. There should be around five satellite TV platforms worldwide offering a 3D channel by the end of 2010. Pay-TV providers are more likely to lead 3D initiatives as they have the premium content TV households want to watch in 3D and they need to differentiate themselves from their competitors. Worldwide events like Olympic Games and soccer World Cups are usually used to showcase new products. This year’s football World Cup in South Africa is no exception, 3D being at the centre of attention. Sony agreed with football World Cup organiser FIFA to broadcast 25 matches of the 2010 event in 3D and sponsored the new ESPN 3D channel that was launched on June 11th with the 2010 World Cup kick-off. This combination of drivers is likely to lead to a global TV market of around 39,600 TV channels by 2019 with growth foreseen in almost all the regions, and an expected CAGR of 3.9% over the next decade.

SD channels will remain the reference distribution format but the share of TV channels distributed in HD will progressively increase and will likely represent 20% of the global video broadcasting market by 2019. ■

growth in revenues was limited in 2009. To remain attractive, several platforms reshaped their pricing policies and reduced the introductory package price thus limiting their revenues and profits. In the emerging digital markets, to build large subscriber bases and make satellite pay-TV affordable to low-income households, platforms opted for a low-cost strategy offering a basic package at a very competitive price. Although platforms will not be profitable in the short-term, this strategy enabled them to rapidly build large subscriber bases and become leading pay-TV providers.

Although TV broadcasters are more cautious regarding investments in this tough economic environment, HD is one area where growth has been observed and represents a strong driver for the industry. High definition television, already largely developed in the US, is on the cusp of a strong growth phase, at least in Europe. A Euroconsult report on prospects for high definition television points out that the number of networks offering HD tripled in the last two years. By the end of 2009, 7% of the global satellite TV channels (including free-to-air and pay-TV) were distributed in HD versus only 4% in 2008.

As HD is about to become a standard feature of TV sets in Europe, the addressable market for HD services is growing strongly.