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Video Dominates European Sat Capacity

14 февраля 2007
A large majority of leased satellite capacity revenues in the European markets is being generated by video - and the region's high-def channels continue to show steady growth. That's the news coming from a new study that suggests the carriage of TV channels and video feeds creates upwards of 80 percent of all revenues throughout the region.

According to recent research conducted by international satellite and wireless technology market research firm NSR, 72 percent of leased C- and Ku-band commercial capacity revenues - fully 80 percent when considering non-commercial uses - were generated in Europe via DTH, free-to-air, TV bouquets, TV distribution, occasional use and SNG services. The firm also said that nothing has highlighted the importance of video in Europe during the past two years more than the boom in high-def channels.

"While growing HD carriage has been a leading trend in Europe, the 'fatter' channel size, which requires more capacity to be leased for carriage, is of less importance to the industry than the key role that HD will play in driving TV viewers to either take on a pay-TV service or encourage existing subscribers to move up to higher level programming tiers (thus increasing ARPU) while simultaneously reducing churn," said Patrick French, NSR senior analyst and author of the report. "Further, HD is a discriminator for pay-TV service providers and allows for clear differentiation between their services and other multichannel TV options, most especially rapidly growing DTT packages such as Freeview in the United Kingdom and TNT in France."

French also said that a stronger pay TV segment will only benefit satellite operators as these service providers lease additional capacity to expand both their HD and standard definition channel lineups.

The firm's research also shows that increasing carriage of classic standard definition channels for new DTH services, expanded programming options for existing DTH services, free-to-air bouquets, micro bouquets, and digital terrestrial TV distribution will lead to more than four new transponder leases for every single transponder leased for carriage of HD programming.

Said French, "HD is certainly critical for satellite operators, but astute industry observers need to understand the real role of HD within context of the overall growth of video services in Europe."


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