Satellite industry: TV a primary growth driver, regulatory constraints – CASBAA report
15 June 2009
The region’s satellite industry, historically dominated by voice and data, has seen its recent growth primarily driven by capacity demand for video services, with a focus on DTH (direct to home) TV broadcasting.
To coincide with its annual Satellite Industry Forum, Monday 15 June 2009 at the Four Seasons Hotel in Singapore, the Cable & Satellite Broadcasters Association of Asia has released its latest Members Report: Video in Demand, Asian Satellite Services 2009.
The share of TV broadcasting in total transponder demand has risen from just 25% in 2003, to 37% in 2008. Voice and data’s share dropped to 52% (from around 67%) over the same period. Video contribution (defined as the carriage of video feeds between professional users) now accounts for a solid 10-12% share of total transponder demand. CASBAA also points out that TV services can prove lucrative, with the price paid per transponder for broadcasting TV channels around 1.5 or 2 times greater than the price paid for voice and data services. “As a result, revenues for the broadcast of TV channels should now represent around half of revenues of satellite operators,” says the report.
Report also says that, despite improvements, regulation continues to constrain the market.
Two primary impacts have been identified: restrictions on access to national customers for foreign operators have limited growth opportunities for the region’s satellite operators; regulations and ‘pro-national’ policies have supported the emergence of the large number of operators in the region, resulting in market fragmentation, high competition for the ‘open’ market and pressure on capacity pricing.
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