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Northern Sky: IPTV via Satellite to Generate $1.6-B in Total Revenues From 2005-2010 |
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CAMBRIDGE, MA, Sept. 21, 2005/Satnews Daily/ — The IPTV via satellite market accounts for a relatively small percentage share of the market potential that terrestrial-based platforms are likely to generate. Although satellite-based total revenues from 2005 to 2010 are expected to exceed $1.6 billion, the market estimates expected from terrestrial-based services, as touted by some forecasters, rest in the area of over $7 billion for the year 2010 alone, concludes a new report by Northern Sky Research.
Nevertheless, NSR said, IPTV does provide a unique and growing opportunity for the satellite industry to target. The growing preference for IP that satellite service providers are incorporating in their offerings, and the compelling role of satellite services in the video markets worldwide, make IPTV via satellite services a compelling value proposition for select regions.
“Given the proven broadcast economics of satellites in delivering content cost-effectively to large geographic footprints, particularly in underserved areas, growth of IPTV via satellite services should increase at a steady rate,” states Jose del Rosario, senior analyst of NSR and author of the report.
According to NSR’s newest market survey and forecast report on IPTV via Satellite, initial demand is expected to be generated largely by entities that are setting up infrastructure to enable IPTV via satellite services. These services mainly require transponder lease contracts from satellite operators for the delivery of content to IPTV gateways. Once the infrastructure is in place, the market is expected to move quickly to retail business models where revenue-sharing arrangements between satellite companies and the owners of content will lead to higher margins as satellite players participate in revenue sharing from the subscribers’ monthly service fees.
“Since ‘content is king’ in the pay-TV business, content aggregation and distribution rights are, and will continue to be more important from a revenue generation perspective compared to actual service provisioning of IPTV,” del Rosario said. “The market entry strategy for IPTV via satellite players is to provide a compelling business proposition to the owners of content, and once this has been established, the revenue-sharing arrangements will ensure a healthy market for satellite players,” adds del Rosario.
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