[Satellite News – 5-19-08] Hello HD, a new high-definition (HD) platform in Hungary being broadcast by Eutelsat Communications, expects to have 50,000 subscribers by the end of the year, said CEO Andra Schmideg.
The platform, which debuted in early May with channels such as Eurosport HD, National Geographic HD, Filmbox HD and HBO HD is one of the first dedicated HD platforms to launch in Eastern Europe. Hello HD is leasing two transponders on a long-term basis on Eurobird 9, which also will enable satellite homes in Hungary to receive digital channels broadcasting from Eutelsat’s Hot Bird video neighborhood.
“There are around 200,000 households in Hungary with an HD-ready TV,” Schmideg said. “Every week in Hungary, another 2,000 HD ready TVs are being sold. There will be around 300,000 HD ready TVs in Hungary by the end of the year. That is our target market.”
The set-top-box, provided by Switzerland’s Advanced Digital Broadcast, enables HD and standard-definition reception based on the DVB-S2 (digital video broadcasting-satellite-second generation) standard. The set-top box will cost consumers about 370 euros ($568.50), while the monthly subscription fee is around 18 euros ($27.66).
Schmideg believes there is a strong demand for HDTV services in Hungary, and he expects Hello HD to reach the breakeven point in 2009. “Other [direct-to-home platforms in Hungary have started a price war, and because of that price war we think people need a better quality national service,” he said. “We think the services available now are of poor quality, particularly those with flat screens. We have decided to target that niche market.”
The operator also hopes to exploit an early mover advantage into the Hungarian HD market. “We are the only HD service provider on the Hungarian market providing national coverage,” he said. “If UPC also starts to offer HD services, we will face tough competition, [but] it is difficult to say when they will launch services.”
Another challenge for Hello HD will be to keep boosting the content for the service, and Schmideg would like to see more local HD content. “Certain national channels here are looking to go to HD,” he said. “One of the Hungarian national channels will launch HD channels at around the time of the Beijing Olympics. There will be two national channels coming in HD. We also know a number of small channels plan to launch services in HD next year.”
Still, Schmideg is confident that the operator will be the standard bearer for HD services in Hungary. “We consider ourselves to become the flagship of HD service providers on the Hungarian market by the end of 2008,” he said. “We hope that in the next 12 months we can establish ourselves as a successful HD platform. We also want to become the market leader for HD services in Hungary. I think we will have a very popular service. A lot of people are buying flat screens, and they need a good quality service.”