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[Via Satellite 03-29-2016] By 2025, NSR expects more than 785 Ultra-HD channels will broadcast over satellite, driving an additional $280 million in annual leasing revenues. The research firm’s “Ultra-HD via Satellite, 3rd Edition” report identifies 2016 as a key inflection point for the rollout of satellite-based Ultra-HD channels.

According to NSR forecasts, by next year almost all regions worldwide will have Ultra-HD channels available, and even developing regions see content by the end of the decade. Furthermore, the plunging price of 4K TV sets accelerates interest and demand in the new format, setting 4K TV penetration rates to rise faster than the initial introduction of HD TVs.

Ultra-HD remains a small component of the video market, with around 1 percent of overall channel counts, but is disproportionately lucrative through both direct and indirect returns. NSR finds that short term Return on Investment (ROI) challenges remain for broadcasters, but longer term, Ultra-HD is expected to pay dividends to pay-TV providers and form a critical component of most platforms by 2025.

“Given the exponential increases we’ve seen on 4K TV shipments, introducing Ultra-HD channels and packages is a key strategy to retain and grow pay-TV subscriber bases in an increasingly competitive environment. Additionally, this is a vital competitive response to Over-the-Top (OTT) platforms’ ever expanding online content catalogues,” said Alan Crisp, NSR analyst and report author. “While in the short term Direct-to-Home (DTH), cable TV and Internet Protocol Television (IPTV) platforms will offer Ultra-HD for ‘free’ with existing premium channel bundles, longer term Ultra-HD will achieve higher revenue streams generated by increasing [Average Revenues Per User] ARPUs and subscriber levels.”