[Satellite News 02-09-11] Euroconsult expects the market value for video transmission services over satellite to reach $27 billion in 2020 – up from $15.8 billion in 2010 – driven by strong growth in video distribution services for TV channels and contribution services for permanent and occasional use, according to its latest research guidance, issued Feb. 9.
    The video transmission market, which is supported by the distribution of video content on pay-TV platforms either directly by satellite or through the head-ends of terrestrial networks, is set for a technology-driven revenue surge, according to Euroconsult CEO Pacôme Revillon.
     “The 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,” Revillion said.
     The Euroconsult report, “Video Transmission Services over Satellite, Global Market Analysis and Forecasts to 2020,” showed an estimated 25,000 TV signals were transmitted by satellite by year-end 2010. North American and European markets remain the largest markets in this sector, but the 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, Euroconsult said.
     Over the past two years, technological improvements and new innovations have changed the video market, with migration to HD and 3D transmission formats, the roll-out of fiber and 3G/4G networks, Ka-band, the development of linear and non linear usage and the multiplication of video screens all playing a critical role in the sector’s development.    
     “Global traffic on occasional use terminals was estimated at close to 5 million hours in 2010 for around 22,000 terminals deployed. The increase in terminals per channel and technical improvements are expected to drive growth in this market in the coming decade, with Ka-band transmission being seen as a real opportunity to increase both traffic and terminals, due to a potential decrease in transmission costs,” Euroconsult said in the report.
    Revillion said other changes in the video transmission market value chain include broadcasters increasing outsourcing and consolidation among service providers. “Industry consolidation is likely to increase due to the increased complexity of the solutions.  While the leading specialized service providers, such as Globecast, Arqiva and RRSat currently capture around 6 percent of the total market value of video transmission services, new players are expected to emerge alongside the market consolidation and reorganization of historical market players,” he said. “Recent transactions, such as the acquisitions of Ascent Media activities and Crawford Communications by Encompass, may be followed by further merger and acquisition activities in the next few years. This will be required to take advantage of growth opportunities and reach the critical size needed to manage more complex content management and transmission requirements.”